FEDERAL ELECTION COMMISSION

999 E Street NW Washington DC 20463 Volume 12, Number 1

COMPLIANCE

6 Nonfilers

2 FEDERAL REGISTER NOTICES

REGULATIONS

2 Standards of Conduct: Final

Rules

TABLE OF CONTENTS

COM MlSSIONERS

FEC Commissioners

Sworn In

3 ADVISORY OPINIONS

800 LINE

7 Joint Fundraising: Amending

Forms I and 2

COURT CASES

4 DCCC v. FEC (Second Suit)

5 DCCC v. FEC (Third Suit)

6 New Litigation

Prior to his appointment as Special Deputy, Com

missioner Josefiak served as legal counsel to the

National Republican Congressional Committee

He also served as minority special counsel on

federal election law for the Committee on House

Administration, U.S. House of Representatives

Prior to that, he was legislative assistant to

Congressman Silvio o. Conte (R-Mass.).

A native of Massachusetts, Mr. Josefiak hold

a Bachelor of Arts degree from Fairfield

University, Fairfield, Connecticut, and a Juri

Doctor degree from Georgetown University Law

Center.

STATISTICS

11 1983-84 PAC Activity

10 INDEX

--,-------

FEC COMMISSIONERS SWORN IN

On October 3, 1986, the U.S. Senate confirmed President Reagan's nomination of Thomas

J. Josefiak and Scott E. Thomas as FEC Commissioners. In an afternoon ceremony at the

Commission on October 15. 1986, Commissioner

Thomas E. Harris administered the oath of office

to Commissioner Thomas and FEC Chairman Joan

D. Aikens, to Commissioner Josefiak. (Commissioner Thomas was officially sworn 'in on the

morning of October 14 and Commissioner

Josefiak, on the evening of October 15.)

Commissioner Thomas, a Democrat, succeeds

Mr. Harris, whose third term on the Commission

expired in April 1985.* From 1983 until his

appointment as Commissioner, Mr. Thomas served

as Executive Assistant to Mr. Harris. Before

accepting this staff position, Commissioner

Thomas served the agency as an Assistant General

Counsel for Enforcement in the Office of General

Counsel. He first joined the Commission, as a

legal intern, in 1975.

A native of Wyoming, Mr. Thomas holds a

Bachelor of Arts degree from Stanford University

and a Juris Doctor degree from Georgetown

University Law Center. He is a member of the

bars for: the District of Columbia, the U.S.

District Court for the District of Columbia, the

U.S. Court of Appeals for the Ninth Circuit and

the U.S. Supreme Court.

Commissioner Josefiak, who succeeds Republican Commissioner Frank P. Reiche, has been

serving on the Commission since August 1985.**

From 1981 until his appointment as

Commissioner, Mr. Josefiak served as Special

Deputy to the Secretary of the Senate, who, by

law, is an ex officio member of the Commission.

November 1986

'tMr. Harris continued to serve on the Commission lUltil President Reagan nominated Commissioner Thomas to replace him.

'""'Since the first session of the 99th Congress

had adjourned in August 1985, President Reagan

appointed Mr. Josefiak under the "recess appointment" clause of the U.S. Constitution. On October 3, 1986, during the second session of the 99th

Congress, the Senate confirmed Mr. Josefiak's •

nomination.

\-
NcMrnta" 1986 FEDERAL ELECTION COMMISSION \CIurne 12, Nurn

2

correcting violations of the Ethics Act's con

of-interest provisions by former employees. 

18 U.S.C. §S207(a),(b) and (c). If the Comm

finds that a complaint alleging violations of 

provisions by a former employee can be sub

tiated, the Ethics Officer will investigate 

alleged violatlonts) and submit an investig

report to the Commission. If the Comm

then finds reasonable cause to believe a fo

employee has violated the conflict-of-in

provisions, the agency will initiate a discipl

proceeding. An impartial hearing examiner d

na ted by the Ethics Officer will conduc

proceeding. (At the request of the fo

employee, the proceeding may include a hea

The employee may appeal the hearing exam

decision to the Commission.

FEDERAL REGISTER NOTICES

Copies of notices are available in the P

Records Office.

Notice Title

1986-7 Clearinghouse on Election Admin

tion's Advisory Panel Meets (51 

Reg. 31369, September 3, 1986) 

1986-8 II CFR Part 900 I et al.r Public Fi

ing of Presidential Primary and Ge

Election Candidates and 11 

100.7(b){ll) and 100.8{b){l2): Bank L

Comment Period on Proposed Rule

tended (51 Fed. Reg. 34221, Septe

26, 1986)

1986-9 II CPR Part 7: Standards of Condu

Agency Employees: Final Rule' (51 

Reg. 34440, September 29, 1986) 

STANDARDS OF CONDUCT FOR FEe

COMMISSIONERS AND EMPLOYEES:

EFFECTIVE DATE FOR RULES

On September 29, 1986, the Commission published final rules in the Federal Register which

govern standards of conduct for FEC Commissioners and employees. The final rules will become effective on October 29, 1986. See 11 CFR

Part 7 in 51 Reg. 34440.

The intent of the revised rules is to "facilitate the proper performance of Commission

business and encourage citizen confidence in the

impartiality and integrity of the Com mission."

Major provisions of the rules are highlighted below.

The Record is published by the Federal Election Commission, 999 E Street, N.W., Washingto

D.C. 20463. Commissioners are: Joan D. Aikens, Chairman; John Warren McGarry, Vice Chairma

Lee Ann Elliott; Thomas J. Josefiak; Danny Lee McDonald; Scott E. Thomas; Jo-Anne L. Co

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

Ex Officio. For more information, call 202/376-3120 or toll-free 800/424-9530.

Subpart A: General Provisions

This subpart sets forth general provrsrons

governing standards of conduct for employees. It

explains the process by which employees are to be

notified of these standards of conduct. This

subpart also provides for an interpretation and

advisory service to be administered by the

agency's Ethics Officer. Finally, Subpart A specifies the procedures for reporting and handling

suspected violations of the Ethics Act, as well as

possible disciplinary and remedial actions which

may be taken against violators.

Subpart B: Conduct and Responsibilities

SUbpart B establishes standards of conduct

for Commissioners and employees. It offers

general rules of conduct for Commissioners and

staff and lists categories of unacceptable activities. This subpart also includes procedures for

submitting outside employment requests.

Subpart C: Conduct end Responsibilities of

Special Government Employees

This subpart sets forth specific standards for

conduct applicable to special Commission employees, i.e., those working for the Commission on a

temporary basis.

Subpart D: Post Employment Conflicts of

Interest; Procedures for Administrative

Enforcement Proceedings

The rules of this subpart follow the procedures that the Com mission approved in 1980 for
Novemoor 1986 FEDERALElECTION COMMISSION \bJume 12, Numtff 11

•

ALTERNATE DISPOSITION OF

ADVISORY OPINION REQUEST

AOR 1986-34: Control and Operation of

Insolvent Bank's PAC by

Federally Chartered Corporation

On October 3, 1986, the Commission closed the

file on this advisory opinion request, after

determining that the requester lacked authority

to request an advisory opinion on behalf of the

American Diversified Savings Bank and its PAC.

ALTERNATE DISPOSITION OF

ADVISORY OPINION

On October 23, 1986, the Commission

decided to reconsider Advisory Opinion 1986-35.

The Commission's decision vacated its original

opinion, issued on September 26, 1986. (The

Commission's procedures for reconsidering an

advisory opinion are spelled out in section 112.6

of FEC Regulations.)

ADVISORY OPINION REQUESTS

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.

AOR Subject

1986-36 Funds donated to House candidates by

campaign committee of incumbent seeking House com rnittee chairmanship.

(Date made public: September 24, 1986;

Length: 2 pages)

1986-37 Presidential candidate debate sponsored

by nonprofit corporation in conjunction

with its national convention. (Date

made public: October 1, 1986; Length: 4

pages, plus S-page supplement)

3

ADVISORY OPINIONS: SUMMARIES

An Advisory Opinion (AO) issued by the Com

mission 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 indistin

guishable 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 1986-29: Slate Mailing by

House Candidate

Representative Fortney (Pete) Stark's reelection

committee plans to develop and circulate a slate

card supporting his candidacy and those of one

federal candidate and several state and loca

candidates. Several issues--ie., whether or no

the disbursement for the card is a contribution

from Stark to the other candidates, whether or

not a disclaimer is required and the particula

reporting requirements--depend on two factors

whether the card is distributed by volunteers and

if it is mailed, how the mailing is handled.

Under Mr. Stark's proposal, his committee

together with the Alameda County Democratic

Central Committee, will select the candidates to

be listed on the card. Distributed only in

Mr. Stark's Congressional district, the card will be

sponsored by a (yet unnamed) political committee

While Representative Stark plans to pay for the

card, he will seek proportional reimbursemen

from each candidate listed on the card.

Slate Card Program as Exception to

Conlribution/Expenditure

The Act and FEe Regulations exclude from

the definitions of "contrlbutlon" and "expenditur-e

those payments made by a candidate for campaign

materials which refer to other candidates, pro

vided the materials are distributed in conjunction

with volunteer activities. (Such disbursement

are popularly referred to as "coattail support."

2 U.S.C. S481(a)(8)(B)(xi); 11 CFR lOO.7(b)(I6) and

IOO.S(b)(l7). If the slate card is mailed, the

exception applies only if the mailing: 1) is made

from lists developed by the candidatels) and 2) i

not made by a commercial vendor. Consequently

payments by the Stark committee will not consti

tute in-kind contributions to the federal candidate

listed on the card provided:

o Volunteers distribute the slate card;

o The committee uses its own mail lists or thOS

developed by other candidates listed on the

slate card; and

continued
Navemt:er 1986 FEDERAL ELECTION COMNIISSION \bIume 12, Num

o If reimbursements are made, they are paid from

funds that are permissible under the Act.

Similarly, if any of the listed candidates pay for

the slate card in conjunction with their own

volunteer activities, their payments will not con";'

stitute in-kind contributions to Representative

Stark's campaign.

Since this type of mailing does not constitute

an expenditure for public political advertising, the

Stark committee will not have to include a disclaimer notice on the slate cards. On the other

hand, if it wished, the Stark Committee could

place a notice on the card identifying a (yet

unnamed) political committee as the sponsor of

the mailings. As long as the sponsoring committee did not pay for the cards, payments for the

card still would not be considered contributions or

expenditures on behalf of the other named candidates.

Slate Card Program as ContributionlExpenditure

If the committee decides to distribute the

slate cards by using lists developed by those who

are not candidates or by allowing a commercial

vendor to handle the mailing, the portion of the

costs allocable to the federal candidate listed on

the slate card will constitute an in-kind contribution from the Stark Committee to that candidate. 2 U.S.C. §44la(a)(7). As such, these

payments will be subject to the Act's limits on

contributions. 2 U.S.C. §441a(a)(l)(A}. Reimbursements from listed candidates (federal, state

or local) for their share of direct mailing costs

must be made from funds permissible under the

Act.

Slate cards distributed through such direct

mailings are considered public political advertising and must. therefore, bear a proper disclaimer notice. See 2 U.S.C. S441a(d); 11 CFR

110.11(a).

The Commission noted that the Act preempts

any provisions of state law that impose requirements on federal. candidates listed on the slate

card (e.g., disclosure requirrn ents), The Act does

not, however, preempt state disclosure provisions

which would require the committee to supply

information to listed state and local candidates

for state reporting purposes.

The opinion also provided detailed advice on

how the Stark Committee should disclose the

slate card transactions. (Date issued: September

11,1986; Length: 5 pages)

AO 1986-32: PAC's Refunds to Contributors

and Reimbursement to

Parent Organization

Before terminating, SACO/PAC, the separate

segregated fund of the Sino American Cooperative Organization, Inc. (SACO), may dispose of its

remaining funds by: 1) making contribution re4

funds to the PAC's contributors and 2) 

bursing solicitation expenses to SACO, whic

organization incurred on behalf of SACO/PA

Nothing in the Act or FEC Regulations 

prohibit SACO/PAC from amending its by-la

permit these activities. (Its current by-law

vide that SACO/PAC Will, upon its termin

distribute any remaining funds to the Repu

and Democratic Parties.)

SACO/PAC's proposed disposal of its 

and its subsequent termination are subject 

following reporting requirements:

o SACO/PAC must report the contributio

funds and reimbursement to SACO as 

bursements. 11 CPR I04.3(b) (1) and (b) (3

o SACO/PAC must file a termination repor

the FEC before terminating. 11 CFR 101.

(Date issued; August 17, 1986; Length 4 page

DEMOCRATIC CONGRESSIONAL

CAMPAIGN COMMITTEE v. FEe (S~nd Su

On October 3, 1986, the U.S. District 

for the District of Columbia declared tha

FEe's dismissal of an administrative com

filed with the agency by the Democratic Con

sional Campaign Committee was contrary to 

(Democratic Con ressional Cam 8i n Comm

v. FEC; Civil Action No. 86-2075 Pursuant 

U.S.C. §437g(a)(8)(C), the court directed the 

to conform with its declaration within 30 day

Baekground

The Democratic Congressional Cam

Committee (DCCC), a national committee o

Democratic Party, filed its administrative 

plaint with the FEe on December 20, 

DCCC alleged that its Republican counte

the National Republican Congressional 

mittee (NRCC), violated the election la

failing to allocate $10,000 to NRCCts coordi

party spendin$ limits for a House candid

Rhode Island. NRCC made the expenditure

mailings during 1985, which allegedly ben

the Bepubtican House candidate in Rhode Is

First Congressional District. (Although 

mailings were officially sponsored by the R

*Coordinated party expenditures are li

expenditures which may be made by party 

mittees on behalf of federal candidates in ge

election campaigns. During 1986, based o

cost of living adjustment, a national party 

mittee could spend up to $2l,8lO for each 

House candidates in Rhode Island. 2 U

S44la(d).
Novemter 1986 FEDERAL ELECTION COMMISSION \.bIume 12, Numter 1

\

Island Citizens Group, NRCC did not deny that it

had actually prepared and paid for the rnailings.)

The mailings encouraged recipients to petition the House Ethics Committee to investigate

newspaper charges that "Cong, St. lsiel Germain

had amassed a multimillion dollar personal

fortune by using his public position to help

wealthy investors." (Congressman st Germain

was the Republican candidate's opponent for the

Rhode Island House seat.)

The General Counsel recom mended the Commission find reason to believe that the NRCC had

violated the election law by failing to allocate

and report the mailing expenses as coordinated

party expenditures. However, on June 5, 1986, a

majority of the Com missioners failed to find

"reason to believe" the NRCC had violated the

election law. SUbsequently, by a unanimous vote,

the Commissioners closed the file on the complaint.

Court Ruling

Initially the court noted that even though

the Commissioners' dismissal of the complaint had

resulted from their failure to obtain the votes

required to find reason to believe the election law

had been violated, the DCCC still had "the right

[under the statute] to seek review of an adverse

outcome."

On reviewing the DCCC's administrative

complaint, the court found that the mailin$ addressed in FEC Advisory Opinion 1985-14 and

those conducted by the NRCC in Rhode Island

were similar. They both; "1) were prepared by a

na tional com mittee of a political party, 2) identified by name a specific Congressman of the

opposing party, 3) criticized the record of the

Congressman, and 4) were distributed to the constituents of the Congressman in question."

Furthermore, the court noted that "•..['I]he

Counsel found that the mailer's statement about

ridding the government of corruption 'is 8. reference to an election in that One way to remove

Congressman St Germain would be to vote him

out of office.' "

The court therefore concluded that the

nNRCC mailer conveys an 'electioneering

message' as defined by the FEC's own advisory

opinions and as interpreted by its General

Counsel. Thus the FEe's dismissal of the plaintlff's complaint was 'contrary to law.' "

.tAO 1985-14 was summarized on page 6 of the

July 1985 Record.

5

DEMOCRATIC CONGRESSIONAL CAMPAIGN

COMMITTEE V. FEC (Third Suit)

On October 9, 1986, the U.S. District Cour

for the District of Columbia granted, withou

prejudlee, the Democratic Congressional Cam

paign Com mittee's (DCCC's) and the FEC's stipu

lated motion to dismiss an amended complain

which DCCC filed with the court on September 8

1986. (Democratic Congressional Campaign Com

mittee v. FEC; Civil Action No. 85-2485).

In its amended complaint, DCCC, a nationa

committee of the Democratic Party, asked th

district court to:

o Declare that the FEC acted contrary to law i

failing to act on an administrative complain

within 120 days after DCCC had filed th

complaint; and

o Issue an order directing the FEC to act on th

issues raised in DCCC's administrative com

plaint within 30 days of the court's decision

(See 2 U.S.C. §437g(a)(8)(A).)

DCCC claimed that it had filed the adminis

trative complaint with the FEC on December 20

1985. In the administrative complaint, DCCC

alleged that four organizations had jointly mad

illegal expenditures aimed at defeating Michiga

Congressman Robert Carr in his 1986 reelectio

effort. Specifically, DCCC asserted that th

organizations had undertaken a media campaig

which falsely claimed that Congressman Carr ha

used his franking privilege illegally. (The organi

zations were; The Michigan State Republica

Committee, The 6th Congressional District Re

publican Committee, Citizens Against Govern

ment Waste and Marketing Resource Group.)

SIMHON GOLAR 'I. FEC (Second Suit)

On September 18, 1986, the U.S. Distric

Court for the District of Columbia dismissed

without prejudlce, a suit that Mr. Simeon Gola

had filed against the FEC in January 1985

(Simeon Golar v. FEC; Civil Action No. 85-225

The court dismissed the suit after Mr. Gola

notified it that he WaS "not prepared to prosecut

this action at this time.'! The court noted that, o

showing "good cause," Mr. Golar had the right t

reopen the suit in the future.

For a summary of the issues addressed i

Mr. Golar's suit, see page 4 of the March 198

Record.

continue
Novemoo-1986 FEDERAL ELECTION COMMISSION \blume 12, Numo

12/3-5 Council on Governmental Ethics

Laws

Hartford, Connecticut

Vice Chairman John Warren

McGarry

Charles Steele, General Counsel

Kent Cooper, Assistant Staff

Director for Public Disclosure

10/14 The Asia Foundation

Washington, D.C.

William Kimberling, Deputy

Director, National Clearinghouse on Election Administration

10/5-7 General Election Seminar

for County Election Officials

Santa Fe, New Mexico

William Kimberling, Deputy

Director, National Clearinghouse on Election Administration

PUBLIC APPEARANCES

FEe PUBLISHES NONFILERS

During September, the Commission publ

the names of two House campaigns in Loui

that had each failed to file pre-primary re

for the state's September 27 Congress

primary.

The election law requires the agency to 

lish the names of nonfiling candidates. Co

ance actions against non filers are decided 

case-by-case basis. The law gives the Commi

broad authority to initiate enforcement ac

resulting from infractions of the law, incl

civil court enforcement and imposition of 

penalties.

6

NEW LITIGATION

PEe v. Bank One

The FEC claims that campaign loans made by

foul" banks to the John Glenn Presidential Committee, Inc., the principal campaign committee

for Senator Glenn's publicly funded campaign for

the Presidency in 1983-84, were not made in the

ordinary course of business. Specifically, Bank

One, Ameritrust, BancOhio and Huntington

National Bank did not accept sufficient collateral

from the Glenn campaign to guarantee repayment

of the loans.

Since bank loans that are not made in the

ordinary course of business constitute prohibited

eontrlbutlons," the FEC asks the court to declare

that:

o The four banks violated section 44Ib{a) of the

election law by making prohibited contributions

to the Glenn campaign; and

o The Glenn campaign, in turn, violated section

441b{a) of the election law by accepting the

contributions.

The FEC also asks the court to assess a civil

penalty against each defendant amounting to the

greater of $5.000 or 100 percent of the amount

involved in each defendant's violation.

U.S. District Court for the Southern District

of Ohio, Eastern Division, Civil Action No.

C2-86-1082, September 10, 1986.

·See 11 CFR lOO.7(a) (1) (i) and 100.7(b) (11).

'"'"Under the Act, an individual may contribute

up to $1,000 to a candidate per election.

FEe y. Mark Barry

The FEC asks the district court to declare

that Mark Barry, the assistant treasurer for

Mickey Edwards' 1982 and 1984 House campaigns,

knowingly and willfUlly violated the Act and FEC

Regula tions by:

a Failing to maintain adequate records for

approximately $164,784 in disbursements that

he made on behalf of the Edwards in '82 Committee, the principal campaign com mittee for

Mr. Edwards' 1982 House campaign (I I CFR

l02.9(b)(I»; and

o Making an excessive contribution ** of

$1,587.60 to the Edwards in '82 Committee (2

U.S.C. S44Ia(a)(I)(A).

The agency further asks the court to:

o Assess a civil penalty against Mr. Barry

amounting to the greater of $10,000 or 200

percent of the total amount involved in the

violations; and

o Permanently enjoin Mr. Barry from further violations of the Act and FEC Regulations.

U.S. District Court for the District of

Massachusetts, CA No. 86-2B07-C, September 30,

1986.
Novemoor 1986 FEDERAL ELECTION COMMISSION \Olume 12, Numta 1

•

JOINT FUNDRAISING:

AMENDING FORMS 1 AND 2

In recent months, the Commission has

received questions on joint fundraising procedures. The following artiele focuses on special

reporting rules that apply to federal candidates

and political committees which plan on participating in a joint fundraiser.

Joint fundraising is election-related fundraising conducted jointly by at least one federal

political committee and one or more other

committees.* Federal and nonfederal candidate

com mittees, party com mittees and other types of

committees -- federal or nonfederal -- may share

in the fund raising. (Committees sponsored by

corporations and unions, however, may not participate; see footnote below.) When engaging in

joint fundralsing, the participating committees

must follow the rules set out in Commission

Regulations at 11 CFR 102.17. These rules are

explained in a handout available from the Commission. Call the toll-free number, SOO/424-9530,

or the local number, 202/376-3120.

Joint fundraising rules require special reporting -- particularly with regard to FEe Form 1,

the statement of Organization, and FEe Form 2,

the Statement of Candidacy. This article explains

how the forms must be filled out and amended for

joint fundraising purposes.**

Joint Fundraising Representative

Joint fundraising participants must select a

fund raising represen ta tive to collect and deposit

proceeds, pay expenses, allocate proceeds and

expenses among participants, keep records and

file reports on overall joint fundraising activity.

The fundraising representative deposits the proceeds (only those permissible under federal law) in

a separate account -- the joint fundraising

account. 11 CFR 102.17(c)(3).

The fundraising representative must be a

federally registered political committee. It may

be either a new com mittee, established just for

the fundraiser and then terminated, or one of the

·PACs established by corporations and labor

organizations (i.e., separate segregated [uruls)

may not engage In joint fundraising; nor may

unregistered committees sponsored by corporations and unions. 11 CFR 102.17(a)(3). Corporate

and labor separate segregated funds may, however, raise ftmds through collecting agents,

following the rules at 11 CFR 102.6(b).

·"'Amendments to Form 1 must be reported

within 1a days after the change takes place. 11

CFR 102.2(a)(2).

7

federal political committees participating in th

fundraising event. 11 CFR 102.17(a)(1)(i), (0)(

and (b)(2).

To simplify reporting, it is recommended tha

the participants establish a separate politic

committee to be the fund raising representative

father than designate a participating com mitte

as the representative, especially if two or more o

the participants are federal candidate commi

tees.

Newly Formed Political Committee as Fund

raising Representative. A new committee estab

lished to act as the joint fundraising representa

tive must file a Form 1 (Statement of Organ

zation) or a letter containing the same info

mation. The form or letter should make clea

that the committee is a joint fundraising repre

sentative. (If using Form I, the com mittee place

this information under entry No.5, "Type of Com

mittee.") The letter or form must also list th

names and addresses of all the federal politic

committees participating in the joint fundraisin

effort. (On the form, this information is show

under entry No.6. The notation under "Relation

ship" should read "joint fundraising partlclpants.

The remainder of the form should be filled ou

The same information that the form require

should be included in the letter. Note that th

name and address of the bank or other depositor

Which holds the joint fundraising account must b

listed as a committee depository. The statemen

must be signed by the treasurer or assistan

treasurer designated on the form or letter.* Once the joint fundralsing activity is finishe

and all the bills are paid, the new committee ma

file a termination report. The law permits com

mittees to terminate only when they no longe

intend to. receive any contributions or make an

expenditures and when they have no outstandin

debts or obligations.

Participating Committee as Fundraisin

Representative. As an alternative to establishin

a new committee, the fundraising representativ

may be one of the participants that is already 

federally registered political committee. Note

however that a oUtical committee that func

tions as both the undraismg representative an

artici ant rna find re orlin more com Iieated

A representative participant must amend it

Statement of Organization (either on Form 1 or i

a letter) to show that it is the joint fundraisin

representative and to list the names and addresse

continue

"'If all the federal participants are Hous

campaigncommittees, the newly formed fWld

raising representative files with the Clerk of th

House. If all the federal participants are Senat

campaign committees, the new committee file

with the Secretary of the Senate. Otherwise, th

new committee files with the FEC.
Nav'emoo- 1986 FEDERAL ELECTION COMfVlISSION \blume 12, Numt

Amended Amen

Form 1 Form 1 Form 

JOINT FUNDRAISING

SPECIAL REPORTING REQUIREMENTS

liThe candidate files the amended Fo

with-the principal campaign committee whic

turn, files the form with the appropriate fe

and state offices.

gjPACs established by corporations an.d 

organizations (separate segregated fWlds) ma

engage in joint ftmdraising. See 11 

l02.17(aX3).

x

x

x

x

x

x

Prin~al

Campaign

Committee

Candidate

New

Committee

Participant

Committee

Other

Type of

Committee "£/

Participants

Pundraising

Representative

signed by the treasurer or assistant treas

must list the name and address of the 

fundraising representative, which should 

identified as that type of committee. (On 

form, this information is listed under entry N

"joint fundraising representative" should be l

under "Relationship,") The amendment must 

provide the name and address of the bank ho

the joint fundraising account if the bank ha

been previously listed as a committee deposi

11 CFR 102.17(c)(3)(0.

Remember, an amended Sta.tement of O

nization should include only the commi

name, address, FEC identification number 

corrected informa tion. 11 CFR L02.2(a)(2)

using Form 1, the committee should check 

under entry No.4 to show that the stateme

an amendment. Likewise, a letter should 

clear that it is an amendment to the Stateme

Organization.

8

of the federally registered committees that are

participating in the fundraiser. (See above section that explains this procedure.)

The representative/participant must also

establish a separate account to be used solely for

joint fundraising receipts and disbursements. The

name and address of the bank holding this joint

fundraising account must be listed on the

amended statement if the bank has not been previously listed as a committee depository. 11 CFR

l02.17(c)(3)(i).

The amendment must be signed and dated by

the treasurer or assistant treasurer.'"

Remember, an amended Statement of Organization should include only the committee's

name, address, FEC identification number and the

new information. 11 CFR 102.2(a)(2). If using

Form 1, the committee should check lfyesU under

entry No. 4 to show that the statement is an

amendment. Likewise, a letter filed in lieu of the

form should make clear that it is an amendment

to the Statement of Organization.

Participating Federal COmmittees

Each federally registered committee participating in the joint fundraiser, including a candidate committee, must file an amended Statement

of Organization (FEC Form 1) or a letter containing the same information.·· The amendment,

"'The amendment is filed with the federal

office where the representative/participant customarily files its reports and statements.

'""'The amendment is filed with the federal

office where the participant customarily files its

reports and statements.

Participating Federal candidates

A federal candidate participating in the joint

fundraiser must designate the joint fundraising

representative as an authorized committee. 11

CFR 101.I(b) and 102.17(a)(1)(O. To accomplish

this, the candidate files either an amended Statement of Candidacy (FEC Form 2) or a letter

containing the same information. In either case,

the amendment should note that the committee

being authorized is the joint fundraising representative. The candidate signs the amendment

and files it with his or her principal campaign

committee. That committee, in turn, files the

amendment with the appropriate federal and state

offices.

Note that, within 10 days after the candidate

files the designation with the principal campaign

committee, the joint fundraising representative

must : file a Statement of Organization or an

a mend rnent, See the above section on joint

fundraising representatives. Additionally, the

candidate's principal campaign committee must

file an amended Statement of Organization. See

the section below on participating federal committees.
Novemoor 1986 FEDERAL ELECTION COMMISSION \.blume 12, Number 

Please indicate quantity in box to left of each item.

General

Trade Associations

Using FEC Campaign Finance Information

Volunteer Activity

Brochures

Order Form

Federal Election Commission

Information Services

Washington, D.C. 20463

Toll Free: 800/424-9530

local: 202/376-3120

Campaign Guides

Phone:

Federal Electiof'l Bookkeeping Manual

Campaign Law.; for Candidates

FEe Regulations Annual Report

FEe Record

(subscription I

Congressional Corporations and

CantliCales Labor OrgBinlzpt"lons

Party Committees Nonconnected

Committees

Advisory Opinions Local Perty

Aetiv~ty

Candidate Political Ads

Registret ion and Solicitations:

Committee Public Funclng 01

Treasure" Presidential Elections

Contributions State Elections &

Fed....r C3'T1P.ign LaIN

Corporate/Labor Trade Associations Com mu nicationt

co,porate/ Labor Using FEC Campaign

Facilitie. Finance Information

FEC and Federal Volunteer Activity Election La""

Independent

Expenditures

Mail ." to:

NAME

STREET

CITY,STATE, ZIP CODE

CONNECTEO ORGANIZATION IPHONE (Optional!

Annual Report

Report to President and Congress, summ

rizing agency's activities, advisory opinions a

litigation; and presenting Commission's legislati

recommendations.

9

FEC Record

Monthly newsletter covering reporting, advisory opinions, Iitigation, legislation, statistics,

regulations, compliance, Federal Register notices,

FEC procedures and staff, and publlcatfons,

Using FEC Campaign Finance Information

Brochure explaining how to gather information on financial activity of political committees

and candidates by using reports and FEers computer indexes.

Campaign Guides

Clear explanation and illustration of election

law requirements. Separate Guide for:

Congressional Candidates and Committees

Party Committees

Corporations and Labor Organizations

Nonconnected Political Committees

Federal Election Campaign Laws

Complete compilation of Federal election

campaign laws prepared by FEC.

FEC Regu1ations (11 CFR)

FEC regulations; subject indexes prepared by

FEC.

FREE PUBLICATIONS

The FEC offers the following free publlcations, To order, return the completed form below.

FEC and Federal Election Law

Brief overview of major prOVISIOns of the

Federal Election Campaign Act and the Commission's role in administering it.

Brochures

Advisory Opinions

Candidate Registration

Committee Treasurers

Contributions

Corporate/Labor Communications

Corporate/Labor Facilities

Independent Expenditures

Local Party Activity

Political Ads and Solicitations

Public Funding of President Elections

State Elections &: Federal Campaign Law

House and Senate Bookkeeping Manual

Recommended method of bookkeeping and

reporting for Federal candidates and their committees.
Novernb3' 1986 FEDERAL ELECTION COMMISSION \()Iume 12, Numb

This cumulative index lists

advisory opinions, court cases and

800 Line articles published in the

Record during 1986. The first number

in the citation refers to the "number"

(month} of the Record issue; the

second number, following the colon,

indicates the page number in that

issue.

OPINIONS

1985-26: Corporation's distribution

of employee's political message,

1:7

1985-31: Affiliation between insurance corporation and agencies

for purposes of PAC solicitations, 2:2

1985-32: Proceeds of reception beyond Act's purview, 1:7

1985-33: Personal loans to candidate for campaign, 1:7

1985-34: Nonconneeted PAC's use

of proceeds from life insurance

policy, 1:8

1985-35: Solicitability of corporate

board members, 1:8

1985-37: Affiliation of local Chambers of Commerce with State

Chamber, 3:1

]985-38: Com mittee established by

candidate for state and local

candidates, 3:2

1985-39: Bank ad in political journal, Z:2

1985-40: PAC's spending for Presidential testing-the-waters activities, 3:2

1985-41: Contribution for general

election accepted prior to primary, 2:3

1985-42: Campaign funds used to

pay candidate's rent, 3:4

1986-1: Vendor's offer to provide

free tickets to committee, 4:6

1986-2: Candidate's sales

campaign, 4:6

1986-4: Corporation's program to

encourage employee Contributions, 4:6

1986-5: Excess campaign funds

transferred from candidate's

federal to local committee, 4:7

1986-6: PAC established by Vice

President for party building and

candidate support, 5:2

1986-7: Cooperative PAC's shareholder solicitation program, 4:7

1986-8: 1982 contributions refunded by candidate's 1986 campaign,

6:7

1986-9: Candidate's use of 1986

campaign funds to reimburse

himself for legal expenses, 6:7

1986-11: Act's preemption of state

election law, 6:8

1986-12: E cess campaign funds

transferred to 1986 exploratory

oomrnittee, 7:1

1986-13: PAC expenses financed by

trade association's corporate

members, 7:2

1986-14: Proceeds from sale of

committee's campaign van, 6:8

1986-17: State party convention

not election; general election

contributions spent before primary, 8:4

1986-18: Maintaining campaign

funds in cash management account, 8:5

1986-19: Limits for unoppposed

candidates in states with no primaries, 9:1

1986-20: Promotion item prepared

and distributed by campaign, 8:5

1986-21: Pre-election reporting re- quirement for unopposed primary

candidate, 8:6

1986-22: Rebates offered by t.v,

station to candidates, 9:1

1986-24: PAC contributions by testamentary bequest, 10:3

1986-25: Corporation's use of FEC

contributor information, 10:4

1986-26: Presidential candidate

appearances at convention 10:4

1986-27: Consolidated report of

union's federallnonfederal PACs,

10:5

1986-28: Candidate's residence

used for campaign, 9:4

1986-30: Candidates' expenses for

pollt.ical message reimbursed to

corporation, 10:5

800 LINE

Candidate use of loans and personal assets, 7:5

Designating a principal campaign

committee, 3:5

Local and state officeholders be- com e federal cand idates, 7:4

Transfer of candidate funds from

state to federal committee, 1:8

Using information in FEC reports,

7:3

10

COURT CASES

Alwin E. Hopfmann v. FEC, 

6:9

Ameritrust Co. National Asso

FEC, 9:8

Antosh v. FEC (Fourth Suit), 1

Antosh v. FEC (Sixth Suit), 

6:8; 9:5

Common Cause v. FEC (

Suit), 8:6; Fourth Suit, 8:8,9

Demoera tic Congressional 

paign Committee v; FEC, 9:

FEC v, American Internationa

mographic Services, Inc., 4:8

FEC v, Beatty for Congress C

mittee.6:9

FEC v, Californians for Dem

tic Representation, 3:3

FEC v, Campaign Resource T

nologies, Inc.• 9:7

FEC v, Jimmy Carter Comm

for a Greater America, 6:lO

FEC v , Citizens Party, 3:8

FEC v; Dramesi for Congress, 

9:6

FEC v, Eldredge, 1:10

FEC v, Haley, 1:11

FEC v. Louis Rocha, Jr., 10:7

FEC v, Maggin for Congress, 5

FEC v. MAPAC, 1:10

FEC 'I. National Congress

Club,7:7

FEC v, NCPAC (Third Suit), 7:

FEC v, New Republican Vi

Fund, 6:10; 8:7

FEC v, NRA, 1:11

FEC v, Pryor for Congress C

mittee,5:5

FEC v. Re-Elect Hollenbec

Congress Committee, 8:7

FEC v, Rhoads for Congress C

mittee, 6:9

FEC v. Rodriguez, 7:8

FEC v, Sailors' Union of the 

fic Fund, 2:3

FEC v. Walsh for Congress, 9:7

FEC v, Wolfson, 4:8

FEC v, 1984 Victory Fund (Se

Suit), 6:HI

Gramm v. FEC; FEC v. Gra

1:10

John Glenn Presidential Com

tee, Inc. v : FEe. 8:8

National Rifle Assoc. of Am

v. FEC (Second Suit), 10:7

Orloski v, FEC, 9:5

spannaus v, FEC, 10:6
11

\blume 12, NumOOr 

From January 1, 1985, through June 30, 198

PACs raised $254 million and spent $205 millio

PACs opened the election cycle with $55 milli

cash on hand and had $103 million on hand 

July I, 1986.

Chart 1 below compares contributions ma

by PACs over four election cycles. Note th

only 62 percent of the PACs registered with t

FEC during the 1985-86 cycle actually cont

buted to candidates. A similar pattern prevail

during the same 18-month period of the past fo

election cycles.

Charts II and III on page 12 show the top 

PAC fundraisers and contributors to 1986 cand

dates.

More detailed information on the financ

activity of PACs may be obtained from the FE

press release of September 7, 1986, which 

available from the FECls Public Records Offic

Call: 376-3140 locally or, toll free, 800/424-953

continu

FEDERAL ELECTIOI\J COMMISSION

CHART I

PAC CONTRIDUTIONS TO HOUSE AND SENATE CANDIDATES

(figures in millions of dollars)

Election Cycle

197'1-'18 1979-80 1981-82 1983-84 1985-86

Contributions" to All

Fooeral Candidates $ll $25 $38 $57 $78

Contributions to

U.s. Senate and House

Candidates in Current

Cycle $11 $21. $35 $51 $71

Number of PACs Making

Contributions 971 1,647 2,124 2,541 2,729

Total Number of PACs

Registered with the FEe 1,709 2,571 3,479 4,243 4,421

NavemOOr' 1986

"Includes contributions to committees of: candidates active in current election cycle; and a

federal candidates (for House, Senate and Presidency) campaigning in future elections or retiring deb

of former campaigns.

1983-84 PAC ACTIVITY

While political action committees (PACs)

increased their total contributions to federal candidates during the current election cycle, as compared with contributions made in past election

CYCles, the growth rate of PAC giving declined.

During the first 18 months of the 1985-86 election

cycle, PACs increased their candidate support by

37 percent over the same period in the 1983-84

cycle. By contrast, during the first 18 months of

the 1983-84 election cycle, PAC contributions

increased 50 percent over 1981-82 levels.

.,

•
FEDERAL ELECTION COIVIIV1ISSI0N

\Qlume 12, Numte

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31

CHARTm

TOP 10 CONTRmUTORS

TO FEDERAL CANDIDATES

Realtors Political Action

Committee (National

Association of Realtorsl " $1,387,429

National Education Association

PAC (National Education

Associatlon) 1,034,220

Build PAC (National Association

of Home Builders) 949,77 2

American Medical Political

Action Committee (American

Medical Association) 869,098

Committee on Letter Carrier

Political Education (National

Assoeia tion of Letter Carriers

of USA) 839,255

Association of Trial Lawyers

PAC (Association of Trial

Lawyers of America) 803,600

Seafarers Political Activity

Donation (Seafarers International Union of North

America) 768,956

National Association of Life

Underwriters PAC (National

Association of Life Underwriters) 737,317

UAW-V-CAP (United Auto Workers) 711,470

Democratic Republican Independent Voter Education Committee (Teamsters Union) 709,426

Amount

Political Action Contributed

Committee 1/1/85 - 6/31/

2,583,232

2,344,868

2,742,554

2,806,109

4,388,396

3, 155,346

4,452,939

7,738,709

$8,249,387

8,099,908

Amount Raised

1/1/85 - 6/31/86

Novemter 1986

Political Action

Committee

CHARTD

TOP 10 MONEY RAISERS

FEDERAL ELECTION COMMISSION

999 E Street,NW

Washington, D.C. 20463

"'The connected organizations (i.e., sponsors)

of separate segregated funds are indicated in

parentheses.

Official Business

Fund for America's Future,

Inc.

National Congressional Club

National Conservative Political Action Committee

Realtors Political Action Committee (National Association

of Realtors)" . American Medical Political

Action Committee (American

Medical Association)

NRA Political Victory Fund

(National Rifle Association)

Democratic Republican Independent Voter Education Committee (Teamsters Union)

Auto Dealers for Free Trade

PAC

League of Conservation Voters

(League of Conservation Voters)

National Education Association

PAC (National Education

Association)