*. *
FREE OF CHARGE -- ACROSS COUNTRY
Sat., Feb, 21 San Francisco, Calif. Hastings College of Law CALIFORNIA 1 through 17
198 McAllister Street OREGON 1 through 4
WASHINGTON 1 through 7
ALASKA 1
Mon., Feb, 23 Los Angeles, Calif. Bunker Hill Room NEVADA 1
Hyatt Regency Los Angeles ARIZONA 1 through 4
711 South Hope Street CALIFORNIA 18 through 43
HAWAII 1 and 2
Wed., Feb. 25 Dallas, Texas Room 7 A 23, Federal Building OKLAHOMA 1 through 6
1100 Commerce LOUISIANA 4, 5, 7,8
ARKANSAS 3 and 4
TEXAS 1 through 24
March
Mon., Mar. 1 St. Louis, Mo. Room 1612 MISSOURI 1 through 10
Federal Building 1OWA 5 and 6
1520 Market Street ILLINOIS 21 through 24
KENTUCKY 1 and 2
KANSAS 1 through 5
Tues., Mar. 2 Detroit, Mich. Troy Hilton MICHIGAN 1 through 10, 12 through 19
Maple Road and Stephenson OHIO 4, 5, 9, 11, 13, 14, 16, 18, 19, 20,
Highway 21, 22, 23
Sat., Mar. 6 Memphis, Tenn. Holiday Inn-Rivermont TENNESSEE 4 through 8
200 West Georgia Avenue MISSISSIPPI 1 through 5
ARKANSAS 1 and 2
ALABAMA 7
LOUISIANA 1, 2, 3,6
Mon., Mar. 8 Atlanta, Ga. Room 556, Federal Building GEORGIA 1 through 10
275 Peach, N.E. ALABAMA 1 through 6
NORTH CAROLINA 5, 8, 9, 10, 11
SOUTH CAROLINA 1 through 6
TENNESSEE 1 through 3
FLORIDA 1 through 15
Fri., Mar, 12 New York, New York Room 305 NEW YORK 1 through 39
26 Federal Plaza CONNECTICUT 1 through 6
NEW JERSEY 5, 7, 8, 9, 10, 11, 12, 13,
14,15
Sat., Mar. 13 Boston, Mass. Sheraton Boston MASSACHUSETTS 1 through 12
Prudential Center VERMONT 1
RHODE ISLAND 1 and 2
NEW HAMPSHIRE 1 and 2
MAINE 1 and 2
*

expenditures from personal funds and expenses for
travel between Washington, D.C. and the place of
candidacy are not subject to the limitations. In addi-
tion, registration fees paid by non-candidate, individ-
ual participants at the conference in order to defray the
costs of organizing the conference count as individual
contributions and must be deducted from the $25,000
aggregate limitation.

AO 1975-89. The Commission concluded that,
regardless of when an honorarium is actually received
by a Federal officer or employee, it will be treated as
being accepted for purposes of the limitations, in the
calendar year when the officer or employee has com-
pleted the appearance, speech, or article for which the
obligation or promise (whether or not legally enforce-
able) to pay an honorarium arose. The Commission
stated that it is the right to receive and not the actual
receipt that determines when the honorarium is
accepted. Accordingly, an honorarium is considered
accepted in the calendar year when there is justifica-

*

tion for a reasonable expectation that the honorarium
will be paid in due course, even if ina subsequent year.

AO 1975-95. The Commission approved the plan of
the Colorado Republican State Party Committee to
establish separate committees for receiving contribu-
tions and making expenditures for Federal and non-
Federal elections.

The State Party Committee formed one committee
to contribute to and expend on behalf of candidates for
State and local offices only. The State Party Committee
will transfer its cash balance to this committee and file
a statement of termination with the Commission.

The Colorado Republican Federal Campaign Com-
mittee has been created to solicit contributions and
make expenditures for Federal elections only. It main-
tains separate depositories, accounting systems,
chairmen and treasurers, and will pay appropriate
charges for various items of administrative overhead
supplied by the State campaign committee.

(Continued, p. 6)



Southeastern Good Government Committee

(Winn-Dixie Stores, Inc.)

DR & B Political Fund A

DR & B Political Fund B

DR & B Political Fund C

Texas Eastern Political Action Committee

Voluntary Contribution Fund (Texas Com-

merce Bank National Association)

* First Security Corporation Political Action

Committee

First Wisconsin Civic Affairs Committee

Wellman Industries Good Government Fund

* Wellman Industries Tax Eligible Good Govern-
ment Fund

« Employees Right Campaign Committee (Na-

tional Right to Work Committee)

Western Dow Employees Committee for Free

Enterprise

Kansas Economic Education Political Club

(Martin Tractor Company of Topeka)

¢ Kansas City Life Employees Political Action

Committee

Concerned Citizens’ Council

* Flowers Political Action Committee (Flowers
Industries)

* FHB Good Citizenship Committee (First

Hawaiian Bank)

FEDERAL ELECTION COMMISSION

1325 K STREET, NW
WASHINGTON, DC 20463

OFFICIAL BUSINESS

* Sohioans Civic Contribution Club

© National Realty Political Action Committee

* Carpet & Rug Industry Political Action Com-
mittee (The Carpet & Rug Institute, Inc.)

MATERIALS AVAILABLE

Federal Register Reprints

FEC Record, Vol. 1, Nos. 1-4, Vol. 2, No. 1
FEC Record, Special Year-End Edition

Index of Reports and Statements

Cost of Election Administration

Survey of Absentee Registration and Voting
Final 1976 Calendar of Pre- and Post-Election
Filing Deadlines (for Presidential, Senatorial
and Congressional Elections)

November Issue of Election Law Survey
Volunteer’s Guide

Fundraiser’s Guide

Revised Edition of the Federal Election Cam-
paign Act (1st ed., April 1975)

POSTAGE AND FEES PAID



SEMINARS OPEN TO PUBLIC --

To kick off the 1976 election year, the Federal Election Commission has scheduled a series of regional seminars
across the United States to stimulate greater political participation through an understanding of Federal campaign laws
and the functions of the Commission.

ALL SEMINARS ARE OPEN TO THE PUBLIC, FREE OF CHARGE. NO PRE-REGISTRATION IS REQUIRED. In most
cases, the seminars will run from 9:30 a.m. to 4:30 p.m. Presentations by a Commissioner and members of the legal, audit
and public information staffs will be brief. Maximum time been reserved for questions and answers.

The first series will include:

February

Mon., Feb. 2 Washington, D.C. Ballroom, Marvin Center
(George Washington University)

800 - 21st Street, N.W.

Room G30, A&B
Fallon Federal Building
31 Hopkins Plaza

Hotel John Marshall
Sth and Franklin Streets

Palmer House
717 East Monroe

MULTI-CANDIDATE COMMITTEES
PRESIDENTIAL CANDIDATES

Wed., Feb. 4 Baltimore, Md. MARYLAND 1 through 8

WEST VIRGINIA 1 and 2

Sat., Feb. 7 Richmond, Va. VIRGINIA 1 through 10

NORTH CAROLINA 1 through 4, 6 and 7

WISCONSIN 1 through 9
ILLINOIS 1 through 20
NEBRASKA 1 through 3
SOUTH DAKOTA 1 and 2
NORTH DAKOTA 1
MINNESOTA 1 through 8
IOWA 1 through 4
MICHIGAN 11

INDIANA 1, 2, 3, 4,7

KENTUCKY 3 through 7

INDIANA 5, 6, 8, 9, 10, 11

OHIO 1, 2, 3, 6, 7, 8, 10, 12, 15, 17
WEST VIRGINIA 3 and 4

PENNSYLVANIA 1 through 25
NEW JERSEY 1, 2,3, 4,6
DELAWARE 1

UTAH 1 and 2

Fri., Feb. 13 Chicago, Il.

Sat., Feb. 14 Cincinnati, Oh. Netherland Hilton Hotel

35 West Fifth Street

Tues., Feb. 17 Philadelphia, Pa. Room 3306, William J. Green, Jr.

Federal Building
600 Arch Street

Fri., Feb. 20 Salt Lake City, Utah Room B20, Federal Building

125 South State Street

IDAHO 1 and 2
COLORADO 1 through 5
WYOMING 1
MONTANA 1 and 2
NEW MEXICO 1 and 2

AO 1975-60. A raffle conducted for political fund-
raising purposes under applicable State law would not
violate the FECA. If the fundraising event was not held
in the name of the candidate, the checks for tickets
should indicate clearly on the face that the proceeds
are directed to a candidate or a committee.

AO 1975-61. The requesting party sought an Advi-
sory Opinion indicating whether there are specific
accounting methods which must be used to make a fair
salary allocation where one.individual may be perform-
ing tasks for a person who is simultaneously a candi-
date for the Senate and for the nomination to the office
of President.

The Commission decided that the two separate
campaign committees may adopt any accounting
method which will yield an allocation which -reflects
the actual billable time spent by the individual on each
of the campaigns.

*

AO 1975-84. Any part or percentage of an honorar-
ium, which is paid as a fee to an agent or speaker's
bureau in consideration for arranging a speaking
engagement or appearance, is part of the honorarium.
Thus, the total amount of the honorarium is subject to
the limitations.

AO 1975-87. The Commission concluded that the
organizational costs of a general forum on campaigns
conducted by the National Republican Congressional
Committee for the benefit of all Republican Congres-
sional candidates, were not attributable to the cam-
paigns of candidates who attended. The Commission
also ruled that funds donated or contributed to defray
costs (other than the registration fee of the forum)
incurred by or on behalf of candidates and their
authorized representatives in order for them to attend
the conferences were fully chargeable against the con-
tribution and expenditure limitations. However,

(Continued, p. 5)



AO 1975-99. Responding to an inquiry by the San
Francisco Republican County Central Committee, the
Commission concluded that the prohibition on contri-
butions by Federal contractors set forth in 18 U.S.C.
§611 applied only to Federal elections, and not to State
and local elections.

AO 1975-105. Caucuses or conventions held for the
purpose of qualifying candidates for the primary ballot
are part of the primary election process rather than a
separate election. As a result, there are not separate
contribution and expenditure limitations for the pre-
primary convention.

Competing candidates could, by agreement, volun-
tarily limit expenditures to a fixed amount for a pre-
primary convention.

AO 1975-106. The Commission reaffirmed its prior
decisions in AOs 1975-5, 6, and 82 that contributions
given for the purpose of retiring pre-1975 debts are not
subject to the limits of 18 U.S.C. §608(b) and (c).
Further, the Commission held that funds used to retire
a 1974 debt will not be charged against the candidate’s
expenditure limits with respect to a Federal election in
1980.

AO 1975-107. The Commission concluded that the

costs of a brief television show describing the “legisla-
tive business” of a Congressman who was not a candi-
date did not have to be counted as an expenditure. The

conclusion would not apply if the show related to an
“upcoming campaign.”

AO 1975-33—Attribution of Presidential fundraising costs
on a State-by-State basis. (1/12/76-1862)

AO 1975-39—Settiement of campaign debts owed to cor-
porations. (12/31/75-60162)

AO 1975-55—Donation of money to charity by an organi-
zation is not subject to honorarium limitations when such
donation is not acondition for a speech. (12/31/75-60162)
AO 1975-60—Fundraising raffle for Federal candidate.
(12/18/75-58802)

AO 1975-61—Allocation of accountants’ salaries in dual
candidacy situations. (1/12/76-1863)

AO 1975-84—Payment of agent's fees cannot be deducted
from an honorarium for purposes of limitations.
(12/31/75-60163)

AO 1975-87—Organizational costs of forum for candi-
dates sponsored by multi-candidate committees are not

CURRENT ADVISORY OPINIONS LISTED

The following chart contains a listing and brief description of Advisory Opinions issued by the Commission from
mid-December through mid-January. Although Advisory Opinion Requests are designated a sequential number when
received by the Commission, the Advisory Opinions are not necessarily rendered in that order. The reference following
each description is the publication date and page number in the Federal Register. (For descriptions of previously issued
Advisory Opinions commencing with AO 1975-1, see The FEC Record, 1975 Year-End Supplement and Vol. 2, No. 1.)

chargeable against spending limits of attending candi-
dates. (1/20/76-2940)

AO 1975-89—Honorarium treated as accepted in year
when obligation to pay honorarium arose. (1/12/76-1863)
AO 1975-95—State Party Committee establishes separate
committees for State and Federal election campaign pur-
Poses. (12/31/75-60163)

AO 1975-99—The prohibition of contributions by govern-
ment contractors does not apply to State and local elec-
tions. (12/31/75-60163)

AO 1975-105—Pre-primary nominating convention is part
of the primary election process. (12/31/75-60164)

AO 1975-106—Repayment of 1974 debts not attributed to
limits in 1980 election. (12/31/75-60165)

AO 1975-107—Attribution of costs of a brief television
show describing the “legislative business” of a Congress-
man. (12/31/75-60165)

FEC NOTES

Public Records Moves

A ceremonial “microfilm-cutting” on Jan. 14,
1976 officially opened the new FEC Public Records
office on the ground floor at 1325 K Street, N.W.,
Washington, D.C. Commission Chairman Thomas B.
Curtis praised its “storefront” location for easy
access. Vice Chairman Neil Staebler called it an
“auspicious day for good politics” and emphasized
the public availability of disclosure records.

The FEC Public Records office has on file State-
ments of Organization and financial reports sub-
mitted by all House, Senate, and Presidential candi-
dates and their supporting committees. The reports
include expenditures and lists of contributions by
individuals and committees.

These records are available for review and pur-
chase at the Public Records office. They may also
be obtained by mail at the above address or by tele-.
phoning (202) 382-7012.

Update on Presidential Primary Matching Funds

The Commission has stepped up the certification
process for Presidential primary matching funds.
Under Commission procedures, after a candidate
has established “eligibility” for matching funds, the
Commission will receive matching requests from
the candidate once a week—every Monday—and will
certify eligible contributions as soon as possible
after their submission.

Only “gifts of money” to a candidate up to $250
per individual are eligible for Federal matching pay-
ments.

The FEC has to date certified a total of
$6,589,496.32 in Presidential primary matching
funds for 12 Presidential candidates. The certifica-
tions, broken down by candidates are as follows:

Birch Bayh $232,339.25

Lloyd Bentsen $511,022.61

(Continued, p. 7)



1325 K Street N

EeCORD

THE FEDERAL ELECTION

COMMISSION

. 20463

Volume 2, No. 2 1976

SUPREME COURT UPHOLDS
FEDERAL ELECTION CAMPAIGN LAW

The United States Supreme Court on Jan. 30, 1976, upheld specific provisions of the 1974 Amend-
ments to the Federal Election Campaign Act. Found constitutional were
1. the limitations on contributions to candidates for Federal office;
2. the disclosure and recordkeeping provisions requiring reporting by candidates, political com-
mittees, and individuals or groups which make certain kinds of expenditures; and

3. public financing of Presidential elections.

In the case Buckley v. Valeo, the Court found unconstitutional

1. the expenditure limitations (except those that apply to Presidential candidates receiving Fed-
eral funds for either the primary or general election); and

2. the authority of the Federal Election Commission as to all but its informational and certain in-
vestigatory powers because of the manner in which it was appointed.

Contribution and Expenditure Limitations

The Court—in concluding that the Act’s limita-
tions on contributions and expenditures involved
at least some direct intrusion on First Amendment

* * ak

TOLL-FREE TELEPHONE NUMBER

The Federal Election Commission announces the
installation of a TOLL-FREE TELEPHONE NUM-
BER: 800-424-9530. The Commission encour-
ages candidates for Federal office, those persons
interested in becoming candidates, and political

utilize this number in making Long Distance in-
quiries concerning Federal election law. The
number is operational from 9:00.a.m. to 5:30p.m.,
Monday through Friday.

FOR LOCAL CALLS (Washington, D.C.), the
information number remains 382-4733.

* * *

%] committees supporting Federal candidates to |*

freedoms—summarized its overall reasoning on
the expenditure and contribution provisions as
follows:

“The contribution limitations, along with those
covering disclosure, are appropriate legisla-
lative weapons against the reality or appearance
of improper influence stemming from the de-
pendence of candidates on large campaign con-
tributions, and the ceilings imposed accord-
ingly serve the basic governmental interest in
safeguarding the integrity of the electoral proc-
ess without directly impinging upon the. rights
of individual citizens and candidates to en- —
gage in political debate and discussion.

“By contrast, the First Amendment requires
the invalidation of the Act’s independent ex-
penditure ceiling, its limitation on a-candidate’s
expenditures from his own personal funds...
and its ceilings on overall campaign expendi-
tures... These provisions place substantial



Jimmy Carter $547,771.31
Gerald Ford $658,882.51
Fred Harris $168,858.86
Henry Jackson $922,805.78
Ronald Reagan $308,213.05
Terry Sanford $246,388.32
Milton J. Shapp $100,000.00
Sargent Shriver $100,000.00
Morris Udall $599,629.25

George Wallace $2,193,585.38

——,

FEC Clearinghouse Advisory Panel Meets

The first meeting of the FEC’s Clearinghouse
Advisory Panel was held on Jan. 6-7 in Washington,
D.C. Neil Staebler, Vice-Chairman of the Federal
Election Commission, opened the meeting with a
welcoming address in which he noted that despite
the fact that the Commission was concerned with
campaign financing and the Clearinghouse with
election administration, both were concerned with
public faith in the election process. He stated that
the creation of the Panel reflected the Commission’s
recognition of the importance of elections adminis-
tration and the mission of the Clearinghouse, which
is to facilitate the flow of information among
election administrators by providing a vehicle for the
sharing of experiences.

The Chief of the Clearinghouse, Dr. Gary Green-
halgh, stated that the Panel’s advice was crucial to
the establishment of a practical and applied re-
search program.

The Panel focused its discussions on the impor-
tance of providing more accurate, concise informa-
tion on election administration to election officials.
To help remedy the situation, the Panel recom-
mended the establishment of a Clearinghouse
documents center.

Research projects suggested by the Panel for the
coming year included:

« development of standards and procedures for

voting equipment and certification

* budgeting systems for elections

© State mail registration systems

* management of contested elections.

Answers to Most Frequently Asked Questions

« Presidential candidates or political committees
required to report on a monthly basis during 1976
should use the interim forms published by the FEC
until the revised forms are available.

* Certain specific questions on delegate selec-
tion were answered in Advisory Opinion 1975-12.
For answers to questions of general applicability on
this subject, interested parties should watch for an
upcoming Interim Guideline.

¢ A partnership can contribute up to $1,000 to
any candidate in any election. Each such contribu-
tion must be reported on Schedule A of the interim
forms with an explanation of the allocation of the
contribution among partnership members.
¢ All political committees must include the fol-
lowing notice on the front page of any literature or
advertisement that solicits contributions:
“A copy of our report is filed with the Federal
Election Commission and is available for pur-
chase from the Federal Election Commission,
Washington, D.C.” (2 U.S.C. § 435)
The FEC has no jurisdiction over 18 U.S.C. §612
concerning publication or distribution of political
statements. All inquiries about this section of the
Act should be referred to the Justice Department.
* There is no longer a March 10 Report of Re-
ceipts and Expenditures. The First Quarterly Report
is now due on or before April 10, 1976, and will cover
all financial activity between Jan. 1 and Mar. 31,
unless previously reported on a monthly basis or
through pre-primary disclosure reports.

—,

Task Force on Matching Funds Distribution

The Task Force on Matching Funds Distribution
recently presented its report to the Commission.
The recommendations of the TF were approved by
the Commission and a letter was sent to the Depart-
ment of the Treasury. Among other recommenda-
tions, the Commission advised the Department of
the Treasury that they could borrow against 1975 tax
check-offs, if necessary, to fulfill matching obliga-
tions before April 15.

New Non-Party Multi-Candidate Committee
Registrations

The Public Records office has received the fol-

towing new registrations through mid-January:
¢ Alcoa Employees Political Fund (Aluminum
Company of America)

* AGC Of St. Louis Political Committee (Asso-

ciated General Contractors of St. Louis)

« Arizona Bankers Political Action Committee
Boise Cascade Corporation Employees Good
Government Fund
¢ Lykes-Youngstown Political Action Committee
Kansas Dental Political Action Committee
(Kansas State Dental Association)

Broyhill Political Action Committee
Our United Republic Political Action Com-
mittee

* Constructive Congress Committee
e¢ Bank of Everett Voluntary Political Action
Committee

(Continued, p. 8)

———————eGCO7U


and direct restrictions on the ability of candi-
dates, citizens, and associations to engage in
protected political expression, restrictions that
the First Amendment cannot tolerate.”

Reporting and Disclosure Requirements

In stating that the Act’s disclosure and record-
keeping provisions are constitutional, the Court
cited “substantial governmental interests” and
specified the following:

1. the informational value to voters;

2. deterrence of corruption through the “light

of publicity”; and

3. “an essential means of gathering the data

necessary to detect violations of the con-
tribution limitations.”

Public Financing

In its decision the Court upheld the provisions
providing for public financing of Presidential elec-
tions, stating that such activity

“represents an effort to use public money to fa-

cilitate and enlarge public discussion and_par-

ticipation in the electoral process, goals vital to

a self-governing people. Thus public financing

furthers, not abridges, pertinent First Amend-

ment values.”

Additionally, the Court upheld the provision au-
thorizing the check-off of $1 and $2 by taxpayers
for inclusion in the public financing fund.

Under the fund, an account was established to
defray the cost of party nominating conventions
held for the purpose of nominating a Presidential
candidate.

The Composition and Powers of the Federal
Election Commission

The Court concluded that the manner in which
the members of the Federal Election Commission

were appointed so violated Article Il of the Con-
stitution as to prevent the persons appointed to
the Commission from acting as “Officers of the
United States,” appointed by the President (with
Senate confirmation). Only these officers may
have rulemaking and enforcement powers.

A majority (four) of the six voting members of
the Commission are appointees of the President
pro tempore of the Senate and the Speaker of the
House of Representatives. After Feb. 29, 1976,
unless the Congress takes legislative action
during that time to “re-constitute” the six Com-
mission members as Presidential appointees, the
FEC will lose its rulemaking, opinion, certifica-
tion, and enforcement powers and will have only
the power to investigate and inform.

The Court ruled that all Commission actions
through Feb. 29 would be accorded de facto
validity.

Public hearings on the compliance procedure
regulation—scheduled for Wednesday, Feb. 11—
have been cancelled pending further notice.

EDITOR’S CORRECTION

Please note on Page 5 (1975 Year-End Supplement),
under AO 1975-74, copy should read:

AO 1975-14 CONTRIBUTION IN NON-ELEC-
TION YEARS. A contribution made to a multi-
candidate committee in a non-election year is not
presumed to count against the contributor’s $25,000
aggregate limit for the election year. (11/4/75-51353)

Published by THE FEDERAL ELECTION COMMISSION, 1325 K Street, N.W., Washington, D.C. 20463.
Commissioners are: THOMAS B. CURTIS, Chairman; NEIL STAEBLER, Vice-Chairman; JOAN D. AIKENS;
THOMAS E. HARRIS; VERNON W. THOMSON; ROBERT O. TIERNAN; FRANCIS R. VALEO, Secretary of the
Senate, Ex-Officio; EDMUND L. HENSHAW, JR., Clerk of the House of Representatives, Ex-Officio.

Staff Director - Orlando B. Potter; General Counsel - John G. Murphy, Jr.; Asst. Staff Director for Admin-
istration - Robert Baker; Asst. Staff Director for Disclosure and Compliance - Drew McKay; Asst. Staff Director
for Information Services - Herb Koster; Editor - Carolyn L. Tillotson,

New Toll-Free Numb

800-424-9530. Press and Public Information Phone No. - (202) 382-3770. Public

Communications - (202) 382-4733. The Record - (202) 382-6531 and 382-3260.



§439a
Convention} Matching] Point of Office AO Compliance;
[REGULATIONS | Disclosure | Allocation|Financing | Funds Entry Subpoenas | Accounts Procedures| Procedure
|Federal Register| 1st version 2nd version:
[Publication 11/4/75 8/6/75 8/5/75
9/29/75 11/5/75 | Correction:| 10/9/75 10/9/75 11/24/75 | 12/18/75
(Close of Public 11/14/75 2nd version: 3rd version:
(Comment - 30 Not Re- Not Re-
lays after this Published published
“date)
FEC Hearings | 10/21, 22, | 11/19, 12/5/75 11/4, None 12/5/75 9/16, 17/75 |12/5/75
24/75 21/75 5/75
1st version: 2nd version:
7/15/75 7/29/75
FEC Adoption |11/25/75 |1/8/76 1/15/76 12/18/75 |2nd version: 3rd version: |12/23/75
11/25/75 11/20/75
Transmittal | Trans- Trans- 1st version: 2nd version: | Transmittal|
12/4/75 mittal mittal Rejected in Hearings-S, |1/19/76
Congressional |Hearings-H,| 1/19/76 1/19/76 |House, 10/2/75
(Action 1/27/76 10/22/75 Rejected in
Senate,
2nd version: 10/8/75
Transmittal,
12/2/75 3rd version:
Transmittal,
12/2/75
Hearings-H,
12/17/75

SYNOPSES OF RECENT ADVISORY OPINIONS

The following Advisory Opinion synopses are offered
for information purposes only. Interested parties are
advised to read the complete text of the Opinion
published in the Federal Register, or to write to the
Commission for a copy.

AO 1975-33. The question posed is whether 18
U.S.C. §608(c)(1)(A) (which forbids a candidate for
nomination to the office of President from spending in
any one State more than twice the amount which a
candidate for nomination to the office of Senator from
that State may spend) requires that fundraising
expenses be prorated, State by State.

It is the Commission’s opinion that fundraising
efforts which are not targeted for particular States
and/or which do not occur within close proximity of
the primary elections in the States where the solicita-
tions are made are not required to be prorated and
attributed on a State-by-State basis. As long as the
funds are being raised for the candidate’s overall,
national campaign and are not made for the purpose of
directly. influencing particular State primaries, Presi-
dential candidates and committees need not allocate
such efforts, even though they might incidentally
affect the outcome of primaries in particular States.

In_addition, the Commission concluded that 18
U.S.C. §591(e) precludes an individual or political
committee from absorbing any candidate’s fundraising
expenses under the guise of the fundraising exemp-
tion. Any such payment will be subject to the limita-
tions set out in 18 U.S.C. §§610 and 611. The Commis-
tion notes further that all amounts expended by a
candidate or his/her authorized committee(s) for fund-
raising must be reported under 2 U.S.C. §434 even
though they may not necessarily be counted against
the candidate’s expenditure limit in 18 U.S.C. §608(c).

Commissioner Tiernan has voiced a dissenting
opinion, in which he notes the need to define the
phrase “within close proximity.”

. AO 1975-39. The Commission responded to the
question of whether a candidate’s committee may
settle past corporate campaign debts.

In keeping with the view set forth in AO 1975-50 (40
FR 58392, Dec. 16, 1975), AO 1975-39 enumerates the
criteria under which corporate debts may be settled.

In addition, AO 1975-39 makes reference to AO
1975-82, which states that contributions to retire
pre-1975 campaign debts may be solicited, received,
and expended for that purpose after Dec. 31, 1975,
without regard to the limits in 18 U.S.C.- §608(b)
and (c).

AO 1975-55. The Commission clarified its decision
in AO 1975-8 by ruling that acceptance of an honorar-
ium will not be imputed when: 1) an elected or ap-
pointed Federal officeholder delivers a speech or
makes an appearance before an organization which
ordinarily pays honorariums in similar circumstances;
2) the officeholder expressly informs the organization
that payment of an honorarium is not a condition of his
or her speech; and 3) subsequent to the speech, the
organization makes a gift to a charity to which the
officeholder has previously contributed or otherwise
endorsed.

The Commission stressed that the donation must
be voluntary and not contingent on a speech or appear-
ance by the Federal officeholder; and that the donation
must be made in the name of the organization and not
in the name of the officeholder.

(Continued, p. 4)