FEDERAL ELECTION COMMISSION

June 1990 999 EStreet NW Washington DC 20463 Volume 16, Numbe

•

REPORTS DUE IN JULY

Reporting requirements for

reports due in July are described

below. Al,.l registered committees

expected to file reports in July are

automatically mailed forms. For

additional forms or other information on reporting requirements, call

the FEC at 800/424-9530 or 202/376-

3120.

Quarterly Reports

All political committees filing

on a quarterly schedule during 1990

must file a quarterly report by July

15. The report should cover all

activity from April 1 (or from the

closing date of the last report

filed, or from the date of the committee's first activity, whichever

is later) through June 30.

Monthly Reports

Those committees filing on a

monthly schedule during 1990 must

file reports by July 20. The report

should cover all activity from June

1 (or the closing date of the last

report filed, whichever is later)

through June 30.

Semiannual Reports

Registered committees authorized

by candidates running in past or

future election years (i.e., not

1990) must file a semiannual report

covering all activity from January 1

through June 30. It is due July 31,

1990.

Pre-Primary Reports

Authorized candidate committees

involved in primary elections in

Georgia, Tennessee, Kansas, Michigan

and Missouri must file pre-primary

reports in July covering activity

from the close of books of the last

report through the 20th day before

the primary election, due 12 days

prior to the election.

Those PACs and party committee

that make contributions and expen

tures in connection with primary

elections are required to file pre

primary reports. Note, however,

that committees choosing to file o

a monthly schedule do not file pre

primary reports.

If sent by registered or cert

fied mail, the report must be pos

marked no later than the 15th day

before the election. See the Janu

ary 1990 Record for a state-by-sta

list of pre-primary filing dates.

(continue

TABLE OF CONTENTS

REPORTING

1 Reports Due in July

2 New Jersey Special Election

4 ADVISORY OPINIONS

REGULATIONS

5 Foreign National Rule Effectiv

COMPLIANCE

5 Nonfile rs

5 Publicly Released MUR Files

6 MUR 3009: Summary

COURT CASES

7 FEe v. NY State Conservative

Party/1984 Victory Fund

7 New Litigation

CLEARINGHOUSE

7 Ballot Access Published

800 LINE

8 Transfers from Nonfederal to

Federal Candidate Committees

11 AUDITS: Reports Released, 89-

11 STATISTICS: Senate Contributio

11 PUBLICATIONS: E&J Compilation

12 INDEX
FEDERAL ELECTION COMMISSION

FEDERAL ELECTION COMMISSION

999 E Street, N.W.

Washington, DC 20463

800/424-9530 202/376-3120 202/376-3l36(TDD)

June1990

Presidential Candidates

Principal campaign committees of

Presidential candidates should

consult the chart on page 3 for

reports due in July. For further

information on Presidential

reporting requirements, see the

January 1990 issue of the Record.

Last-Minute Independent Expenditures

Any person making independent

expenditures aggregating $1,000 or

more between 20 days and 24 hours

before an election day begins must

report the expenditures to the Clerk

of the House or the Secretary of the

Senate (as appropriate) within 24

hours after they are made. 11 CFR

104.4(b) .

Last-Minute Contributions

A candidate's principal campaign

committee or any other authorized

committee must file special notices

on contributions of $1,000 or more

received after the 20th day and more

than 48 hours before an election in

which the candidate is running. 11

CFR 104.5(f). Within 48 hours after

receiving the contribution, the

committee must deliver the following

information in writing to the Clerk

of the House or the Secretary of the

Senate, as appropriate:

o The candidate's name and the

office that he or she is seeking;

o The identification of the

contributor; and

o The amount and date of receipt of

the contribution.

Changing Filing Schedule

PACs and party committees supporting candidates in several 1990

elections may wish to file monthly

reports in order to avoid filing

frequent pre-primary reports. A

committee that wishes to change its

filing schedule (e.g., from

Lee Ann Elliott, Chairman

John Warren McGarry, Vice Chairman

Joan Aikens

Thomas J. Josefiak

Danny L. McDonald

Scott E. Thomas

2

Volume 16, Num

quarterly to monthly) must notif

the Commission in writing when i

files a report under its current

schedule. A committee may not

change its filing schedule more 

once in a calendar year. 11 CFR

104.5(c).

Late Filing

The Federal Election Campaig

Act does not permit the Commissi

to grant extensions on filing

deadlines under any circumstance

Failure to file on time could re

in enforcement action by the FEC

Where to File Reports

Committees must file all rep

simultaneously with the appropri

federal and state officials. 11 

108.3 and 108.5. Addresses for

federal offices can be found on 

back of FEC Forms 3 and 3X; a li

of addresses of state filing off

is available from the FEC.

NEW JERSEY SPECIAL ELECTIONS

New Jersey will hold a

special primary election June 

to select nominees for the vac

First District House seat. A

special general election on

November 6 will fill the seat

until January 1991. Statewide

regular Congressional election

in New Jersey are also schedule

for those dates.

Because the special electio

fallon the same dates as the

regular elections, authorized

committees of special election

candidates and PACs and party

committees making contribution

or expenditures on behalf of

special election candidates are

expected to follow the regular

election-year reporting schedu

See the January 1990 Record fo

dates.

Walter J. Stewart, Secretary of th

Senate, Ex Officio

Donnald K. Anderson, Clerk of the

House of Representatives, Ex Off
,

FEDERALELECTION COMMISSION Volume 16, Numbe

•

June 1990

JULY REPORTING SCHEDULE

Quarterly

July 15

Type of Filer

Report

Pre-Primary Monthly

July 20

Semian

July 3

•

Congressional Candidate

Committees, 1990

Congressional Candidate

Committees, Other Years

PACs & Party

Committees:

Quarterly Filers

PACs & party

commi t tees: 3

Monthly Filers

presidential Candidate

Committees:

Quarterly Filers

presidential Candidate

Commi ttees: 4

Monthly Filers

I

I

I

I

I

I

Corporate/Labor/Membership

Organizations: Reports 5

of Partisan Communications I

1. Expected from candidates in Georgia, Kansas, Tennessee, Michigan and

Missouri.

2. Required only if the committee makes previously undisclosed

contributions or expenditures on behalf of primary candidates.

3. All corporate and labor PACs, nonconnected committees and party

committees are required to file on either a monthly or a quarterly

schedule in 1990.

4. Presidential committees must file on either a monthly or a quarterly

schedule in 1990.

•

5. Required if an organization's aggregate costs exceed $2,000 for

internal communications expressly advocating the election or defeat of

a candidate in a 1990 primary held before July 1. For more information, see page 23 of the FEC's campaign Guide for Corporations and

Labor Organizations.

3
June 1990 FEDERALELECTION COrvlrvllSSION Volume 16, Num

ADVISORY OPINION REQUESTS

The following chart lists recent

requests for advisory opinions

(AORs). The full text of any AOR is

available for public inspection and

comment from the FEe's Public

Records Office.

AOR 1990-7

Transfer between candidate's 1987

Presidential testing-the-waters

committee and 1990 Congressional

campaign. (Date made public: May 2,

1990; Length: 32 pages, inclUding

supplements)

AOR 1990-8

PAC set up by u.s. corporation

partly owned and controlled by

foreign national corporation. (Date

made public: May 2, 1990; Length: 3

pages)

ADVISORY OPINION SUMMARY

AO 1990-5: Candidate's Publication

of Newsletter

Publication of a monthly newsletter

by the Music Street Publishing

Company, a corporation owned and

operated by Margaret R. Mueller, a

1990 candidate for Congress, will

result in expenditures on behalf of

her campaign if the newsletter

has the purpose of influencing an

election, as specified below.

Mrs. Mueller began the newsletter, SPEAKOUT1, in March 1989 and

plans to continue the publication

during her 1990 election campaign.

The newsletter includes articles on

public policy issues and matters of

concern to residents of the 11th

Congressional District (where Mrs.

Mueller seeks nomination) and the

northeastern corner of Ohio, as well

as articles of more general

interest. Many of the articles are

written by Mrs. Mueller herself.

The newsletter is financed out of

her personal funds and through the

sale of advertising.

Although, taken alone, past

issues of SPEAKOUT"! suggest the

newsletter has had significant

purposes that were not election

related, continued publication of

4

SPEAKOUTI since Mrs. Mueller bec

a candidate could potentially be

used to promote her candidacy. 

Expenses incurred in the pub

lication of proposed editions of

SPEAKOUTI will be viewed as

expenditures for the purpose of

influencing an election if:

o The newsletter makes direct or

indirect reference to Mrs.

Mueller's or her opponent's

candidacy, campaign or qualifi

cations for public office;

o Items in SPEAKOUTI refer to M

Mueller's or her opponent's vi

on public policy issues (such 

the limitation of Congressiona

terms--one of the issues broug

up in past newsletters) or to

issues raised in the campaign; 

o Distribution of the newsletter

is expanded significantly beyo

its present audience or in any

manner that otherwise indicate

that Mrs. Mueller is using it 

campaign communication.

Each edition of SPEAKOUTI w

be viewed separately and in its

entirety in determining whether 

bursements for the newsletter ar

expenditures for her campaign. 

campaign-related content within 

particular edition would render 

edition's production costs a cam

paign expenditure. Newsletters 

do not contain campaign-related

references will not be viewed as

expenditures.

If Mrs. Mueller wishes to

publish newsletters as an activi

of her campaign, then her commi

must assume the costs for those

editions, either by directly mak

payments for the production of t

editions or by paying Music stre

Publishing company for its expen

In order to avoid prohibited

corporate contributions by the

company, the committee must make 

payments within a commercially

reasonable time. payments for t

production and circulation of th

newsletter would be reportable

operating expenditures. In add

tion, because payments for adve

ing in campaign-related newslett

are contributions, corporations 

not purchase advertising space i

election-related editions of

SPEAKOUT1. 2 u.s.C. §441b.
June 1990 FEDERAL ELECTION COrviMISS10N Volume 16, Numbe

Commissioner Josefiak issued a

concurring opinion; Commissioners

Aikens and Elliott plan to issue

dissenting opinions. (Date issued:

April 27, 1990; Length, including

concurrence: 11 pages)

REVISED REGULATION ON FOREIGN

NATIONAL ACTIVITY NOW EFFECTIVE

A revised regulation governing

election-related activity by foreign

nationals, 11 CFR 110.4(a), took

effect on April 11, 1990. The

provision implements 2 U.S.C. §441e.

The final rule, published in the

Federal Register on November 24,

1989 (54 Fed. Reg. 48580), clarifies

that foreign nationals may not make

expenditures in connection with

federal or nonfederal elections and

may not participate in the

decision-making process of other

persons (including corporations,

labor organizations and political

committees) with regard to their

election-related activity. See page

3 of the January 1990 Record for

more information.

FEC PUBLISHES NONFILERS

The Commission recently published the names of three House

candidates whose principal campaign

committees failed to file required

disclosure reports.

Nonfilers are published pursuant

to 2 U.S.C. §438(a)(7). Enforcement

actions against nonfilers are taken

on a case-by-case basis.

MURS RELEASED TO PUBLIC

Publicly released NUR summary

files, as announced in an FEC pres

release on May 1, 1990, are listed

below. Civil penalties resulted

from conciliation agreements reach

between the respondents and the

Commission.

The summary file for each MUR 

available from the FEC's Public

Records Office.

MUR 2571

Respondent: (a) Piedmont Communi

tions, Inc., and R. stuber, Secretary/Treasurer (VA); (b) Carol

Enters List Company (NY); (c) Omeg

List Company (VA); (d) Salvation

Army of Houston (TX)

C0mplainant: E.M. Braden, Chief

Counsel, Republican National

Committee (DC)

Subject: Improper commercial use 

contributor information

Disposition: (a) $1,000 civil

penalty; (b) & (c) Reason to belie

but took no further action; (d) No

reason to believe

MUR 2736

Respondent: (a) L.W. Paxon (NY);

(b) people for Paxon and treasurer

(NY); (c) Paxon for Congress '88 a

treasurer (NY)

Complainant: R.M. Bates, Executiv

Director, Democratic Congressional

Campaign Committee (DC)

Subject: Failure to file Statemen

of Organization. on time; improper

transfers and use of prohibited

funds; excessive contributions;

failure to report on time

Disposition: (a) No reason to

believe; (b) $300 civil penalty

(re Statement of Organization

filing); (c) No reason to believe

!'lUR 2819

Respondent: Prudential Insurance

Company of America Federal PAC

(Prudential PAC) and treasurer (N

Complainant: FEC initiated

Subject: Failure to report on tim

Disposition: $1,200 civil penalty

State/

District

( continu

Nonfiler

De la Garza, K.

Johnson, R.

McMillan, J .A.

TX/15

NE/3

NC/9

Report

Not Filed

Pre-primary

Pre-Primary

Pre-Primary

5

MUR 2933

Respondent: (a) Hawaii Republican

party Federal Account - Victory '8

and treasurer; (b) Hotel Corporati

of the Pacific (aka Aston Hotels a

Resorts) (HI); (c) Pacific

Resources, Inc. (HI); (d) C. Brew

and Co., Ltd. (HI)
June 1990 FEDERAL ELECTION COMMISSION

Complainant: FEC initiated

Subject: Corporate contributions

Disposition: (a) $3,000 civil

penalty; (b) $2,000 civil penalty;

(c) & (d) Reason to believe but took

no further action

MUR 2940/2864

Respondent: Conservative Voters

Lobby and treasurer (CA)

Complainant: FEC initiated

Subject: Failure to report; failure

to report change of treasurer

Disposition: Reason to believe but

took no further action

MUR 2996

Respondent: Californians for

Maddy-F and treasurer

Complainant: FEC initiated

Subject: Failure to report

conversion to multicandidate

committee status on time

Disposition: $500 civil penalty

MUR 2997

Respondent: Chiropractic PAC of

Oregon and treasurer

Complainant: FEC initiated

Subject: Failure to report on time;

failure to report change of

treasurer; failure to correct

inaccurate information

Disposition: $500 civil penalty

MUR 3009: Excessive Coordinated

Party Expenditures by

State Party Committee

This MUR, resolved through preprobable cause conciliation, concerned excessive coordinated party

expenditures made by a state party

committee on behalf of a 1988 Senate

candidate.

Background

The enforcement matter was

initiated by the Commission in the

normal course of carrying out its

supervisory responsibilities. The

Commission found reason to believe

that the state party committee had

violated 2 U.S.C. §44Ia(f) by making

excessive coordinated expenditures

on behalf of its Senate nominee.

6

Volume 16, Num

General Counsel's Report

Under section 441a(d)(3)(A)

state party committee and the

national party committee may eac

make special coordinated expendi

tures, subject to limits, on beh

of the party's nominees for the

House and Senate in the general

election. Each committee may

designate the other to act as it

agent for the purpose of making

these expenditures. Coordinated

expenditures are made in additio

the direct contributions to

candidates that parties may make

In this case, the state

committee and the national comm

could each have spent $46,100 on

behalf of their Senate nominee, 

a combined limit of $92,200. Th

FEC's investigation revealed tha

the state committee had authoriz

the national party's Senatorial

Campaign Committee to spend the

state committee's entire coordin

party expenditure allotment. Su

sequently, the state committee s

$15,339 of its own funds on beha

of the Senate candidate. The

Senatorial Campaign Committee,

acting as the designated spendin

agent for both committees, had

already spent $87,610 of the $92

coordinated party expenditure li

The state committee's expenditur

therefore, exceeded the combined

limit by $10,749.87.

The state committee claimed 

excessive spending was inadverte

because the staff was unaware of 

agreement between the state and

national committees. The state

committee said it intended to re

designate $5,000 of the excessiv

expenditures as an in-kind contr

bution and to seek a refund of t

balance from the candidate's

committee.

Commission Determination

The Commission entered into 

pre-probable cause conciliation

agreement with the state commit

The agreement required the respo

ent to pay a $1,200 civil penalt

and to amend its reports to indi

that $5,000 of the excessive

expenditures had been redesignat

as an in-kind contribution to th

candidate's committee.
June 1990 FEDERAL ElECTION COfVlfVlISSION Volume 16,Numb

•

FEe v. NY STATE CONSERVATIVE

PARTY STATE COMMITTEE/1984

VICTORY FUND (87-3309)

On April 17, 1990, the U.S.

District Court for the Southern

District of New York issued a final

consent order and judgment declaring

that the New York State Conservative

Party State Cornmittee/1984 Victory

Fund made excessive contributions in

connection with a 1982 direct mail

project for Florence M. Sullivan, a

Republican candidate in the 1982

Senatorial primary election in New

York. (Civil Action No. 87-3309).

The order included a $15,000 civil

penalty.

The consent order stated that

the defendants first made a $4,980

in-kind contribution to the Sullivan

for Senate Committee by paying for

the printing of direct mail

literature. Subsequently, the

defendants allowed the Sullivan

Committee to use the Victory Fund's

nonprofit postal permit, saving the

Sullivan committee $24,852.15 on

postage (i.e., the difference

between the usual bulk rate for the

Sullivan letters and the postage

actually paid using the nonprofit

permit). These in-kind contributions exceeded the $5,000 per

candidate, per election limit for

multicandidate committees, set forth

at 2 U.S.C. §441a(a)(2)(A).

In addition, the order stated

that the Victory Fund failed to

report the in-kind contribution of

the postage costs, in violation of

2 U.S.C. §434(b).

. The consent order required the

Victory Fund to amend its reports 1

and to pay a $15,000 civil penalty.

Finally, the defendants were

permanently enjoined from future

similar violations.

1. Payment of the civil penalty in

this consent order will also satisfy

two prior outstanding default judgments in FEC v. 1984 Victory Fund

(Civil Action Nos. 86-3891 and 85-

8384). See the March 1987, June

1986 and December 1985 issues of the

Record for more information on those

suits.

7

NEW LITIGATION

Faucher & Maine Right to Life

Committee, Inc. v. FEC (90-0112-B

Sandra Faucher and the Maine

Right to Life Committee, Inc.

(MRLe) ask the district court to

declare that FEC regulations

governing the distribution of

nonpartisan voter guides by

corporations (11 CFR 114.4(b)(5))

are unconstitutionally vague unde

the First and Fifth Amendments.

MRLC and Mrs. Faucher (a boar

member of MRLC, an incorporated

membership organization) also ask

the court to declare that the

group's proposal to compile and

distribute voter guides is not

subject to the Federal Election

Campaign Act and FEe regulations.

The plaintiffs seek injunctiv

relief prohibiting the FEe and th

U.S. Attorney General from enforc

the voter guide regulations with

regard to MRLC'S proposed activit

U.S. District Court for the

District of Maine, Civil Action N

90-0112-B, April 18, 1990.

BALLOT ACCESS SERIES PUBLISHED

In May the FEC's National

Clearinghouse on Election Adminis

tration issued Ballot Access, a

four-volume series on comparative

ballot access law.

Ballot Access includes a

comprehensive study of current

issues and trends in ballot acces

law throughout the U.S. (Volume 1

Three separate volumes examine

state-by-state laws applied to

Congressional candidates,

Presidential candidates and

political parties (Volumes 2 to 4

respectively) .

The series has been distribute

to depository libraries throughou

the U.S. for anyone interested in

the ballot access laws of particu

states. Others interested in

obtaining copies of Ballot Access

should call the Clearinghouse at

800/424-9530 or 202/376-5670.
June 1990 FEDERAL ELECTION COMMISSION Volume 16, Num

TRANSFERRING FUNDS FROM

PRIOR NONFEDERAL CAMPAIGN TO

CURRENT FEDERAL CAMPAIGN

A candidate running for federal

office may transfer any amount of

money from a prior nonfederal

campaign to his or her federal

committee, as long as the transfer

complies with the Federal Election

Campaign Act's limitations and

prohibitions on federal

contributions.

The most common questions about

transfers between nonfederal and

federal candidate committees are

discussed below. This article

illustrates the rules with the

example of a transfer of funds from

a prior gubernatorial campaign to a

current Senatorial campaign. These

rules should be understood to apply

to any transfer of funds from a

prior nonfederal campaign to a

current federal campaign.

Answers are based mainly on the

recently revised FEC regulations

governing transfers of funds between

affiliated committees. The final

rules on transfers were published in

the Federal Register on August 17,

1989, and took effect November 24,

1989. See 54 Fed. Reg. 34098 and

48580. The revised affiliation and

transfer rules were also summarized

in the October 1989 Record.

General Rules

Our candidate ran for governor

in 1986 and is running for the u.s.

Senate in 1990. Are there any

restrictions on a transfer of funds

left over from the gubernatorial

campaign to the Senate campaign?

Yes. While there is no limit on the

total amount that can be transferred

from the state campaign to the

federal campaign, the funds that are

transferred may not include contributions that come from prohibited

sources or exceed the contribution

limits. 11 eFR 110.3(c)(6).

8

Does that mean that we have 

account for every dollar that we

want to transfer to make sure th

the money is legal under federal

rules? Yes. The gubernatorial

committee must be able to

demonstrate that, at the time the

transfer was made, its account h

enough cash on hand that was

permissible under federal law to

cover the amount transferred. T

committee must keep records of th

sources of the money it transfer

11 eFR 110.3(c)(6)(i).

How do we determine how much

permissible cash on hand we have

The "pool of funds" from which a

transfer is made is considered to 

the funds most recently received

11 eFR 110.3(c)(6)(i). For exam

if the gubernatorial committee h

$5,000 in cash on hand, that mon

is considered to consist of the

committee's most recent receipts

totaling $5,000. When making a

transfer from this pool of funds

the committee will have to first

examine its records of the sourc

of those funds and exclude any

impermissible money from the

transfer.

Our gubernatorial account

contains contributions from

corporations and labor organizations. Do we need to separate th

money from the permissible funds

before making the transfer to th

Senate campaign? Yes. The amou

transferred may not include thos

prohibited contributions. One w

of excluding the impermissible fu

is to put them in a separate ban

account~ the transfer could then 

made from the account containing 

permissible money. For example, 

the gubernatorial account has $5

left over from the 1986 campaign

and the last $5,000 that the

committee received includes $2,00

from prohibited sources, the

committee could put the prohibite

$2,000 into a separate account a

transfer the remaining $3,000 to 

1990 Senatorial campaign. See A

1987-12, 1985-2 and 1984-46.
FEDERAL ELECTION COMMISSION

(continu

•

•

•

June 1990

Contribution Limits & Aggregation

How do the Act's contribution

limits apply to the individual

donations that make up the transferred funds? The application of the

contribution limits depends primarily on when the contributions to

the nonfederal campaign were made.

For example, if the gubernatorial campaign wanted to transfer

$3,000 to the Senate campaign, and

if those funds included only contributions given before the 1986 gubernatorial election (that is, while

the candidate was running only for

governor), then the federal contribution limits would not apply to

those funds.

The limits would apply, however,

to any transfers containing funds

contributed to the gubernatorial

campaign after:

o The gubernatorial election was

held;

o The individual ceased to be a

"candidate" for state office; or

o The individual announced his or

her intention to run for the

Senate.

In these cases, transferred contributions from a single contributor

would have to be aggregated with

that donor's contributions to the

federal campaign. The gubernatorial

committee would have to exclude from

the transfer any portion of its contributions that would cause a donor

to exceed his or her individual

federal limits. AO 1985-2.

When would our former gubernatorial candidate (now running for

the Senate) cease to be a "candidate" in the state election?

A person is no longer considered a

"candidate" for a nonfederal office

as of the earlier of the following

dates:

o The date on which the candidate

publicly announces that he or she

is withdrawing from the nonfederal

election and ceases to conduct

campaign activities with respect

to that election (11 CFR 110.3(c)

(4)(iv)(A); or

o The date on which the candidate

becomes ineligible for nomination

or election to the nonfederal

office sought, by operation of

law. 11 CFR 110.3(c)(4)(iv)(B).

9

Volume 16, Numb

Who is responsible for making

sure that a state-to-federal tran

fer does not cause a contributor 

exceed his or her federal contrib

tion limits? It is the responsib

ity of the treasurers of both the

gubernatorial and the Senatorial

committees to aggregate contributions (as described above) to mak

sure that an individual donor doe

not exceed the per-election limit

11 CFR 103.3(b) and 110.6(c)(6)(i

Registration

Could the transfer from the

candidate's gubernatorial campaig

to the Senate campaign trigger

registration requirements for the

gubernatorial committee? Yes. A

transfer to the Senate campaign o

any amount over $1,000 will cause

the gubernatorial committee to

become a federal "political

committee." If the gubernatorial

committee makes the $3,000 transf

discussed above, it will become a

federal political committee and w

have to register within 10 days. 

CFR 1l0.3(c)(6)( iii).

The registration form is FEC

Form 1, l'Statement of Organizatio

available from the FEC.

Would the registration of the

gubernatorial committee affect th

registration of the Senatorial

committee? Yes. The Senate campaign would have to amend its own

Statement of Organization to show

the neWly registered gubernatoria

committee as an "affiliated committee" on line 6 of FEC Form 1.

AO 1985-2.

PUBLIC APPEARANCES

June 4 Columbia College of Chicago

Washington, DC

Kent Cooper, Assistant Sta

Director, Public Disclosur

June 7 Council on Governmental

Ethics Laws

Ottawa, Ontario

John Surina, Staff Director

June 21 practising Law Institute

Washington, DC

Commissioner Scott Thomas

Larry Noble, General Couns

N. Bradley Litchfield,

Associate General Counsel

for Policy
June 1990 FEDERAL ELECTION COMMISSIOl\J

Reporting & Recordkeeping

How would that $3,000 transfer

be reported? Suppose the gubernatorial committee transfers its

$3,000 in permissible funds to the

Senate campaign in one lump sum.

After registering as a federal

committee (as a result of the

transfer), the gubernatorial

committee would file a "Report of

Receipts and Disbursements" (FEC

Form 3). In its report, the committee should report as its "cash on

hand" (line 18 on the Detailed Summary page) the amount it has

transferred to the Senate campaign.

The receipts that make up the cash

on hand are then itemized as needed

on a Memo Schedule A (use the usual

Schedule A and write "MEMO" at the top)~ 11 CFR 104.3(a)(4) and 110.3

(c)(6)(iii) .

Note that in this example the

cash on hand on line 18 should

reflect only the amount actually

transferred. Funds of the

gubernatorial committee that are not

transferred to the Senate campaign

would not be reported.

Where would the gubernatorial

committee file its report? The

gubernatorial committee should send

its completed Form 3 directly to the

Secretary of the Senate (the address

is on the back of the form). The

gubernatorial and Senatorial

committees would file· separately

because they have been authorized

for two separate offices. See 11

CFR 11 O. 3 ( c ) ( 7 ) •

Would our candidate's Senate

campaign also have to itemize the

contributions received through the

transfer? No, but it would have to

report the full amount as a

RECORD SUPPLEMENT ON

REPORTING AVAILABLE

Copies of the September 1986 Record

supplement on reporting are still

available from the FEe's Information

Services Division. The illustrated

l6-page supplement contains detailed

instructions on how to itemize and

aggregate contributions. For a free

copy, call 800/424-9530 or 202/376-

3120.

10

Volume 16, Numb

"transfer from other authorized

committees" on line 12 of the

Detailed Summary Page.

After reporting the transfer 

the. Senate campaign, would the ne

reg1stered gubernatorial committe

continue to file disclosure repo

The gubernatorial committee could

off~cia~ly te~minate its reportin

ob11gat10ns w1th the first report

filed by checking the box on Form 

line 4, indicating that the rep

is a "termination report." Term

tion presumes that there will be 

more federal election-related

activity by the gubernatorial

campaign after the transfer is

reported and that any money

remaining after the transfer will

not be used for federal elections

11 CFR 110.3(c)(6)(iii).

Does the gubernatorial campa

(now a registered federal commit

have to keep records? Yes. The

treasurer must preserve all recor

related to the reported transfers

for three years after filing the

report. 11 CFR 102.9. .

If the gubernatorial campaign

transfers only $800 to the federa

committee, how would the Senator

committee report the transfer?

Since the transfer is less than

$1,000, it would be treated as a

contribution from an unregistered

organization. The Senatorial

committee would report the contri

tion from the unregistered organ

tion on the Detailed Summary Pag

Would the Senatorial committe

have to itemize the individual

contributions that make up the $8

transfer ·from the gubernatorial

campaign? No, the Senate campaig

would only have to report the

receipt of the $800, not the orig

nal sources of the transferred

funds. In its report, the Senate

campaign's Schedule A should note

the amount transferred, date and

source (i.e., the gubernatorial

campaign) of the transfer. Fina

the report should state that the

funds transferred were permissib

under federal law.
June 1990 FEDERAL ELECTION COMMISSION Volume 16, Numb

•

FINAL AUDIT REPORTS

The chart below includes Final

Audit Reports released since

January 1989. Copies of reports

are available from the FEC's Public

Records OfU ce.

Bentsen for Vice President - 88

Date released: March 1, 1990

Length: 2 pages

Quayle for Vice P~esident - 1988

Date released: February 20, 1990

Length: 2 pages

Friends of Gary Hart - 1988, Inc.

Date released: January 25, 1990

Length: 20 pages

1988 Democratic National

Convention Committee, Inc.

Date released: November 21, 1989

Length: 8 pages

Lenora B. Fulani's

Committee for Fair Elections

Date released: November 2, 1989

Length: 9 pages

Arrangements Committee of the

Republican National Committee

for the 1988 Republican

National Convention

Date released: October 25, 1989

Length: 8 pages

Friends of Mattingly

Date released: November 16, 1989

Length: 2 pages

Nevada Republican State

Central Committee

Date released: July 25, 1989

Length: 3 page s

Albert Gore, Jr. for

President Committee, Inc.

Date released: July 13, 1989

Length: 15 pages

Haig for president

Date released: June 22, 1989

Length: 11 pages

Babbitt for President Committee

Date released: May 25, 1989

Length: 9 pages

Pete du Pont for President

Date released: March 9, 1989

Length: 18 pages

11

REPORT ON OUT-OF-STATE CONTRIBUTI

TO 1990 SENATE CANDIDATES RELEASED

On April 16 the Commission

released a statistical report

comparing home-state and outof-state contributions from

individuals to 1986, 1988 and 199

Senate candidates.

In releasing the information,

the FEC cautioned readers to be

aware of certain limitations on t

study. For 1990 Senate candidate

the report shows only individual

contributions of at least $200 gi

during the nonelection year 1989.

For the two prior elections, the

report reflects individual

contributions of at least $500

(each) given during the 1987-88 a

1985-86 election cycles. The rep

does not include information on

smaller individual contributions 

on PAC or party contributions.

A copy of the statistical pre

release is available from the FEC

Public Records Office.

EXPLANATION & JUSTIFICATIONS FOR

FEe REGULATIONS: 1915 - PRESENT

The Commission has recently

updated its compilation of Explan

tion and Justifications (E&Js) th

have been issued for proposed FEe

regulations since 1975. E&Js

accompany regulations submitted b

the FEe to Congress and explain th

origin and intent of the regulatio

proposed.

Updates are mailed automatica

to current subscribers. The Comm

sion notifies subscribers of

available updates and applicable

copying fees as they are issued.

To order the compilation and 

on the mailing list for future

updates, call the FEC's Public

Records Office at 800/424-9530 or

202/376-3140. The volume costs $
June 1990 FEDERAL ELECTION COMMISSION

The first number in

each citation refers to

the "number" (month) of

the 1990 Record issue in

which the article

appeared; the second

number, following the

colon, indicates the page

number in that issue.

ADVISORY O~INIONS

1989-21: Fundraising by

sole proprietor in

cooperation with

candidates, 1:9

1989-25: Preemption of

state law limiting party

spending on behalf of

candidates, 1:10

1989-26: Automatic bank

t r ansf e r s : from

contributor's account to

candidate committee's

account, 1:11

1989-27: Act's preemption

of state law governing

solicitations by state

employees, 2:2

1989-28: voter guides

distributed by nonprofit

corporation, 3:9

1989-29: PAC established

by company owned by

foreign principal, 2:3

1989-30: Payment to

Senator for teaching

course, 2:4

FEDERAL ELECTION COMMISSION

999 E Street, NW

Washington, DC 20463

Official Business

1990-1: Corporation'S sale

of 900-line fundraising

service to candidates,

4:3

1990-2: Candidate's use of

excess campaign funds to

secure loan for party

committee, 4:5

1990-3: PAC's sale of

advertising space in

newsletter, 5:3

1990-5: Newsletter published by candidate, 6:4

COURT CASES

Austin v. Michigan state

Chamber of Commerce, 5:5

FEe v.

=-rranklin, 1:13 - Furgatch

(83-0596-GT(M),

2:7

Life Amendment PAC,

Inc. (89-1429), 4:7

NatIonal Right to

Work Committee,

Inc., 5:7

Nv-state Conservative Party/1984

Victory Fund

(87-3309), 6:7

v. FEC - Common Cause

(89-0524(GAG)),

3 :11

- Dolan, 5:7

Volume 16, Numb

- Faucher & Maine

Ri9ht to Li fe

commIttee, Inc.

{90-0112-B )~7

- NRA (89-3011), 2

MUR SUMMARIES

MUR 2823: Excessive

contribution received 

candidate committee, 

MUR 2599: Reporting er

by Congressional cam

paign, 4:6

MUR 3009: Excessive

coordinated expendit

by state party commi ttee, 6: 5

800 LINE

Basic recordkeeping ru

4:8

Combined dues/solicita

statements, 1:17

Coordinated party

expenditures, 3:6

Designating a principa

campaign committee, 

Disclaimer notices, 5:

Exempt party activitie

5:10

New treasurer, 2:9

Transfers from candida

nonfederal committee 

federal committee, 6

When reimbursements ar

reqUired in ssr

fundraising, 2:8

BuIk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31