999 E Street NW Washington DC 20463 Volume 12, Numbe

COMPLIANCE

9 MUR Summaries

PUBLICATIONS

10 Free Publications

COURT CASES

8 FEC v. Californians for Democratic

Representation

8 New Litigation

STATISTICS

6 Increase in PAC Growth

7 Activity of Senate Incumbents

Seeking Reelection

800 LINE

5 Designating a Principal Campaign

Committee

1 ADVISORY OPINIONS

INFORMATION

5 FEC Expands Direct Access Program

LEGISLA TlON

FEC Seeks Supplement for Disclosure

TABLE OF CONTENTS

AO 1985-37: Affiliation of Local Chambers of

Commerce with State Chamber;

Local Chambers as Collecting

Agents

The Michigan State Chamber of Commerce (

Michigan Chamber) does not qualify as a fede

tion of trade associations. Accordingly, the Mi

gan Chamber may not solicit contributions to 

separate segregated fund, Chamber Fed A

from the members of the Grand Rapids Cham

of Commerce (the Grand Rapids Chamber) 

other local chambers of commerce in Michi

(the local chambers). Furthermore, since the lo

contin

376-3140

376-3155 - 376-3120

FEDERAL ELECTION COMMISSION

NEW FEC HEADQUARTERS/PHONE

NUMBERS

During February, the FEC completed

its move to its new headquarters at 999 E

Street, N.W., Washington, D.C. 20463.

New phone numbers are now in effect for

the following offices:

o Public Records Office -

o Press Office

o Information Services

o Main Switchboard (for

all other offices) 376-5140

Anyone calling the Commission from

outside of the Washington, D.C. area

should continue to USe the toll-free numbe~ 800/424-9530.

March 1986

FEC SEEKS SUPPLEMENTAL FUNDS

FOR DISCLOSURE

On February 20, 1986, the Federal Election

Commission requested a $282,000 supplemental

appropriation from Congress for Fiscal Year (FY)

1986 lito help restore vital disclosure services"

which the agency has had to curtail since February 1, 1986, for lack of adequate funding. In a

letter sent to Congress and the Office of Management and Budget requesting the funds, the

agency stated that "if the supplement is not

forthcoming, the public will be deprived of the

level of disclosure enjoyed during the last election, and will have lost the historical data on the

1986 election cycle."

A total of $858,000 was cut from the FEC's

1986 Fiscal Year budget: $323,000, on the erroneous assumption of a government-wide pay cut, and

$535,000, as the result of the Deficit Reduction

Act of 1985. Although the President asked Congress to restore the $323,000, Congress did not.

Nevertheless, the Senate Appropriations Committee advised the FEC to request an FY 1986

supplement if the agency's work could not be

"effectively completed without additional

funding."
March 1986 FEDERAL ELECTION COMMISSION

chambers are merely organizational members of

the Michigan Chamber and do not quali fy as the

state chamber's "local units," the local chambers

may not serve as "collecting agents" for Chamber

Fed PAC. II CFR 102.6(b).

FEC Regulations define a "federation of

trade associations" as "an organization representing trade associations involved in the same or

allied line of commerce." 11 CFR 114.8(g)(I). The

Commission has interpreted this to mean that

organizations within a federation must share an

organizational relationship. See AOs 1979-62 and

1983-28. The Michigan Chamber and the Grand

Rapids Chamber do not meet this requirement.

Their respective by-laws do not establish or reflect such an organizational relationship. Moreover, the memberships of the Michigan Chamber

and the Grand Rapids Chamber and the other

local chambers include, respectively, several categories of members, such as individuals, firms and

other organizations (including other local chambers). Finally, the Michigan Chamber and the

local chambers represent many lines of commerce

rather than a similar or related line.

The Commission noted that the Michigan

Chamber must also comply with FEC Regulations

governing:

o SOlicitations of its own solicltable members (II

CFR 114.7(g) and 114.8(e)(4»; and

o Transactions involving both Fed Chamber PAC

and the Michigan Chamber's PAC for nonfederal elections (11 CFR 102.5(a)).

(Date made public: January 16, 1986; Length: 5

pages)

AD 1985-38: Committee Established by Bouse

Candidate to Support State and

Local Candidates

Congressman Vic Fazio, who has two authorized

committees to support his 1986 reelection effort,

plans to establish and register in California a

third committee, the state committee. The state

committee will engage exclusively in supporting

state and local candidates and in making charitable contributions, as authorized by state law.

Assuming the state committee limits its political

activity to supporting state and local candidates,

the committee will not be considered a "political

committee," subject to the Federal Election Campaign Act (the Act). Accordingly, the committee

may engage in the following activities:

o The state committee may accept donations

impermissible under the Act, Le., corporate and

labor donations and donations that exceed the

Act's monetary limits.

o The state committee may use Congressman

Fazio's name in its title. 6 y contrast, the Act

prohibits any political committee (l.e., a committee which supports federal candidates) other

than a candidate's authorized cornmitteels)

from using the candidate's name in its title. The

2

\blume 12, Numtx3

Commission noted. however, that referenc

the state committee makes to Congressm

Fazio in conjunction with the committee's fun

raising efforts, general public advertising 

charitable donations mayor may not result i

contribution to Congressman Fazio's reelecti

effort, depending on all the facts and circu

stances of a given situation.

o The state committee may accept funds fro

Congressman Fazio's authorized committe

provided the state committee does not use 

funds for federal elections but restricts th

use to nonfederal election activity. (See abov

Since Congressman Fazio's request indica

that the state committee would not be support

his (or other federal candidates') reelection 

forts, the Commission did not address the issu

raised by transferring funds from the state co

mittee to Congressman Fazio's authorized co

mittee. See AO 1984-46. Nor did the Commiss

address issues related to relevant state and t

laws or House rules because they are beyond 

jurisdiction. (Date issued: January 17, 19

Length: 4 pages)

AD 1985-40: Expenditures on Behalf of Former

Senam.. Testing the Waters for 19

Presidential Candidaey

Former Senator Howard H. Baker, Jr., has esta

lished a fund (the testing Fund) to help him det

mine whether he should become a candidate 

the 1988 Republican Presidential nomination. M

Baker wishes to avoid taking any action bef

November 4, 1986, that will trigger his candida

under the Act or require the testing Fund 

register and report as a political committee. T

Republican Majority Fund (RMF), a nonconnec

political committee "closely identified" with M

Baker, plans to support his testing-the-wat

efforts through a series of activities. Any exp

ditures RMF makes on behalf of Mr. Bake

testing-the waters efforts will constitute in-k

gifts* to the testing Fund. Together, they will 

subject to the contribution limit of $5,000 p

year." The limit will apply at the time R

makes the expenditures.

Should Mr. Baker subsequently become 

Presidential candidate, his principal campai

"""In-kind gifts" refer to RMF expenditures 

behalf of Mr. Baker's testin!'{the-waters activi

"In-kind contributions" refer to RMF expenditu

that would trigger Mr. Bakerls candidate sta

W1der the A ct.

U Prior to July 1, 1985, testin~the-watersa

tivities could be financed with flUIds imperm

sible IUIder the Act. Under the FEe's revis

regulations, however, flUtds used for such acti

ties must comply with the Act's limits and pro

bitions on contributions. See 50 Fed. Reg. 

9993-4, 25698-9 (1985J.
3

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

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

Lee Ann Elliott; Danny Lee MeDonald; Thomas E. Harris; Thomas J. Josefiak; Jo-Anne L. Coe,

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

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

FEDERAL ELECTION COMMISSION \k>lume 12, Numoo

contin

Travel costs for public appearances. Tra

costs paid by RMF for public appearances by 

Baker and his representatives at regional Repu

can Party meetings and conferences that feat

potential 1988 Presidential candidates will be 

kind gifts to the testing Fund. RMF's expenditu

for hosting hospitality suites in conjunction w

these meetings and conferences will also be 

kind gifts to the testing Fund.

Travel costs for private political meetin

Travel costs paid by RMF for private meeti

held by Mr. Baker with Republican Party lead

in states with early primaries and conventions 

be gifts to the testing Fund. (Mr. Baker plans 

seek their views on his potential eandidaey.

Mr. Baker's private meetings are held in conju

tion with appearances on behalf of federal can

dates running in ] 986, RMF must allocate 

Baker'S travel costs between his private meeti

(i.e., as in-kind gifts to the testing Fund) and 

appearances on behalf of 1986 candidates (i.e., 

in-kind contributions to the candidates). See 

CFR 106.1(a).

Similarly travel costs paid by RMF for p

vate meetings held by Mr. Baker in conjunct

with party-building appearances on behalf of lo

and state party committees must be allocated 

tween the two kinds of activities. Since RM

expenditures for this travel will become repo

able expenditures should Mr. Baker become 

candidate, RMF should use the formula for a

cating travel costs between a candidate's ca

paign-related and noncampaign-related activi

on a trip. (The particular allocation. formula u

will depend on whether, after becoming a can

date, Mr. Baker receives primary matching fun

See 11 CFR 106.3 and 9034.7.)

Steering committees. Money spent by RM F 

establish steering committees in several states 

encourage Mr. Baker to seek the nomination 

be gifts to the testing Fund. The Commiss

cautioned, however, that to avoid triggering 

Fund's status as a "political committee" or 

Baker's status as a "candidate" under the Act, 

steering committees may not engage in activi

relevant to a Baker candidacy or the establ

ment of a Baker campaign organization.

Administrative expenses. Administrative 

penses (e.g., salaries, fees and overhead co

incurred by RMF for meetings and travel rela

to Mr. Baker's testing-the-waters activities 

represent in-kind gifts to the testing Fund. See 

CFR 106.l(c) and 100.7(a)(3).

Mardl1986

The Fund's Expenditures for Solicitations

Although direct mail solicitations are customarily considered campaign activity, the testing Fund's direct mail solicitations to former

contributors to RMF and to Mr. Baker's prior

campaigns will qualify as testing-the-waters activity because: 1) the solicitations will clearly

state that Mr. Baker has not yet determined

whether he will seek the ] 988 Republican Presidential nomination; 2) the funds raised will be

used for Mr. Baker's testing-the-waters activities;

and 3) the purpose of the solicitations is not to

amass campaign funds.

Mailing lists provided for the solicitations

will not constitute in-kind gifts to the testing

Fund, provided the Fund reimburses the list owners.

RMF Expenditures as In-Kind Gifts to the Food

RMF detailed five kinds of expenditures it

plans to finance on behalf of Mr. Baker's efforts

to test the waters for a potential] 988 Presidential candidacy. Provided Mr. Baker does not engage in activities that indicate he has decided to

become a Presidential candidate or conduct campaign activity for the Presidential nomination, the

RMF expenditures listed below will constitute inkind gifts to the testing Fund:

committee will have to report RMF's expenditures

for his testing-the-waters activities as both "contributions" and "expenditures" on the first report

the committee files with the Commission." Moreover, RMF's pre-candidacy expenditures, plus any

expenditures RMF makes for Mr. Baker after he

becomes a candidate, will: 1) be subject to an

aggregate $5,000 limit and 2) count against the

statutory spending limits for publicly funded Presidential candidates, should Mr. Baker accept public funding. Finally, if after Mr. Baker becomes a

candidate, RMF makes expenditures for testingthe-waters activities that he engaged in before

becoming a candidate, RMF will have to report

the expenditures as in-kind contributions to Mr.

Baker's Presidential campaign.

The Commission determined that a number of

proposed activities would qualify as testing-thewaters efforts rather than as campaign expenditures or contributions.

"To facilitate reporting, FEe Regulations reQuire that records be kept of flUlds received and

spent for testing-the-waters activities.
March 1986 FEDERAL ElECTION COMMISSION

Newsletter solicitations. RMF distributes a

newsletter to its contributors and party officials

and activists. Expenditures RMF allocates to

newsletter communications that refer brieny to

Mr. Baker's potential candidacy, but which do not

indicate that he has decided to become a candidate, will constitute in-kind gifts to the testing

Fund. A lengthier solicitation message in the

newsletter will also constitute in-kind support for

his testing-the-waters effort rather than influencing his nomination because the message will

not indicate that he has decided to become a

candidate. Specifically, the solicitation message

may: 1) state that contributions to RMF will "pro-:

mote" Mr. Baker's potential candidacy; 2) enclose

newsletter clippings favorable to Mr. Baker; and

3) indicate that contributors to RMF will be

viewed as early supporters of Mr. Baker's possible

candidacy.

The Commission noted, however, that, since

RMF had not submitted samples of proposed solicitations, the agency's conclusion should not be

interpreted as a determination regarding any specific situation.

RMF Expenditures That Are Not In-Kind Gifts to

the Testing Fund

Travel costs RMF defrays for trips that Mr.

Baker makes to qualified party-building events

before he becomes a candidate, and at which he

does not engage in testing-the-waters activities,

will constitute neither an in-kind gift to the

testing Fund nor an in-kind contribution to Mr.

Baker's candidacy. However, if Mr. Baker becomes a candidate, RMF expenditures for his trips

to party-building activities that occur after he is

a candidate will constitute in-kind contributions

to his campaign. 2 U.S.C. §431(I6); 11 CFR

100.15. Comm issioner Thomas E. Harris filed a

dissenting opinion. (Date issued: January 24, 1986;

Length: 23 pages, including dissent)

AO 1985-42: Campaign Funds Used to Pay

Candidate's Apartment Rent

The principal campaign committee of Representative Gene Taylor, a candidate for reelection to

the House in 1986, may pay a portion of the rent

of an apartment in Washington, D.C. which will

be used, in part, for the Representative's personal

use and, in part, by his campaign staff during

visits to the city. If the staff's visits are campaign-related, the reelection committee must report the portion of the rent allocable to staff use

as operating expenditures. 2 U.S.C. S434(b); 11

CFR 104.3.

Alternatively, if the staff's Washington visits

are not campaign-related, the rent paid by the

reelection committee would be considered a personal use of excess campaign funds by Representative Taylor and should be reported as miscellaneous disbursements rather than as operating ex4

\k)lume 12, Numce

penditures, 2 U.S.C. S434(b)(6)(A); 11 CFR 10

(b)(4){vi)). Because Representative Taylor was 

Member of Congress on January 8, 1980, the l

permits him to use excess campaign funds 

personal use. 2 U.S.C. S439a; 11 CFR 113

(Date made public: January 24, 1986; Length

pages)

ADVISORY OPINION REQUESTS

The following chart lists recent requests 

advisory opinions (AORs). The full text of ea

AOR is available to the public in the Comm

sion's Office of Public Records.

AOR Subject

1986-4 Corporation's plan to broaden invol

ment by senior management in contrib

tions program. (Date made public. Ja

urary 24, 1986; Length: 1 page, plus 

page supplement)

1986-5 Campaign funds transferred from can

date's 1984 House campaign to his 19

campaign for local office. (Date ma

publics January 24, 1986; Length: 1 pag

1986-6 Multicandidate committee established 

the Vice President for party building a

support of local, state and federal can

dates. (Date made puollc. January 

1986; Length: 7 pages)

1986-7 Cooperative PAC's shareholder solici

tion program. (Date made public: Ja

uary 29, 1986; Length: 1 page, plus 

page supplement)

PUBLIC APPEARANCES

3/4 Emory University Law School

Atlanta, Georgia

Kenneth Gross, Associate General

Counsel

3/12 Edison Electric Institute

Washington, D.C.

Chairman Joan D. Aikens

3/24 Ohio State Conference on State and

Federal Campaign Finance Laws

Columbus, Ohio
March 1986 FEDERAL ELECTION COMMISSION \blume12, Numoo- 

FBC BXPANDS DIRECT ACCESS PROGRAM

Despite recent cuts in the Commission's disclosure program, beginning in January 1986, the

Commission added several new categories to its

on-line computer information system, the Direct

Access Program. Inaugurated in September 1985,

the FEe's Direct Access Program is specifically

designed for individuals with personal computers.

FEC campaign finance information pertaining to

the 1985-86 election cycle is available to users of

the service in two formats: computer indexes and

computer raw data. (For more information on the

program's capabilities, call 376-3155 or toll free,

800/424-9530.)

The Direct Access Program will now provide

the following cumulative information on each

candidate's or committee's activity:

o Total receipts and expenditures;

o Total cash-on-hand; and

o Total debts owed.

Moreover, users may obtain this summary information by type of candidate (e.g., an incumbent

or challenger) or by type of political committee

(e.g., a corporate or labor PAC). The new information supplements information previously available on records relating to: each individual candidate; each registered political committee, including its total receipts and disbursements; and

political committee support.

In addition, users will now be able to search

the data base for information on a political committee by using only a portion of the committee's

title. This tool is particularly useful for users who

do not know the exact title of an organization's

poritical ae tion com mittee (PAC).

How to Obtain Program Access

Individuals may purchase access to the program for: $50 per hour or for 1,000 per month

for unlimited use. An initial, one-hour minimum

purchase is required. Users may obtain access to

the program from 10:00 a.m, to 10:00 p.m., Eastern Standard Time, Monday through Friday. Parties interested in the service should contact the

agency's Freedom of Information Office by calling

the phone numbers listed above.

5

DESIGNATING A PRINCIPAL

CAMPAIGN COMMlI'TKE

Under what circumstances must an individual w

plans to run for federal office in 1986 or 19

designate a principal campaign committee?

Individuals running for federal office in 19

or 1988 must designate a principal campaign com

rnlttee within 15 days of becoming a candida

(Individuals become candidates once they raise 

spend more than $5,000 to influence their futu

election or when someone they authorize to wo

on their behalf raises or spends $5,000 to i

fluence their election. See 11 CFR 101.1(a).)

Candidates designate a principal campai

committee by filing a Statement of Candidacy 

FEC Form 2 or a letter containing the sam

information (i.e., the name and address of t

principal campaign committee, as well as t

candidate's name and address, party affiliati

and office sought; and the district and state 

which the office is sought). House candidat

must file this information with the Clerk of t

House; Senate candidates, with the Secretary 

the Senate; and Presidential candidates, with t

FEC.

Does this requirement also apply to an individu

who ran in a previous federal election?

Yes. The requirement applies to individua

who were candida tes in a previous election, a

whose authorized committees are still register

with the Commission. They must file a new FE

Form 2, either designating a new principal cam

paign committee or redesignating their curre

committee. (While redesignated committees r

tain their original identification number, new

designated committees receive a new identific

tion nurnber.)

If the candidate redesignates an existi

committee, the committee must amend its cu

rent Statement of Organization (FEe Form I) 

reflect any new information (e.g., a change in t

committee's name or address).

To obtain FEC forms or more informatio

contact Information Services by writing or calli

202/376-3120 or toll free 800/424-9530.
March 1986 FEDERAL ELECTION COMMISSION \Olume 12, Numo

DECREASE IN PAC GROWTH

During 1985, for the first time, the total

number of PACs registered with the FEC reflected an absolute decline in the number of

active PACs. By the end of 1985 there were 3,992

PACs registered with the FEC, a drop from 

4,009 PACs registered at the end of 1984. 

term PAC or political action com mittee refer

any political committee not authorized by a 

eral candidate or established by a political par

The graph below plots the total numbe

PACs in existence from 1975 through 1985. 

graph does not reflect the financial activity 

PACs.

CHART I

PAC GROWTH

Number of PACs

2000 I------~_----

Nonconnee

"""",-_->-..ICorporate

1984

---4.....-......acTrade!

__ ......-...,.r Membersh

Health

___...--_...r--.--...---t..- ....Other • •

500t-----~.....;::y~.....,.,_.-.

10001-----

1500 I--------------------------=~=-----------

*For the years 1974 through 1976, the FEC did not identify sUbcategories of PACs other 

corporate and labor PACs. Therefore, numbers are not a\lClHable for Trade/Membership/Health PACs 

Nonconnected PACs.

**Inc1udes PACs formed by corporations without capital stock and cooperatives. Numbers are 

awilable for these categories of PACs from 1974 through 1976.

6
March 1986 FEDERAL ELECTION COrvINIISSIOI\J \blume 12, Numte

CAMPAIGN FINANCE ACTIVITY OF SENATE

INCUMBENTS SEEKING REELECTION IN 1986

Senate incumbents up for reelection in 1986

have been most active in spending campaign funds

during the early phase of their six-year reelection

cycle (l981-82) and the final phase 0985-86). The

substantial activlty during the first phase of the

cycle may be attributed, in part, to the candidates' efforts to retire debts of form er campaigns

rather than to their 1986 reelection efforts.

By contrast, the candidates' campaign 

ceipts have increased in each two-year phase 

their reelection cycle,

The chart below depicts the campaign 

nance activity of the candidates OVEr the six-y

reelection cycle (Le., from January 1981 throu

June 1985).

More detailed inform ation on Senate incu

bents up for reelection in 1986 may be obtain

from the FEe's January 31, 1986, press relea

available from the FEe's PUblic Records Office

CHARTn

FINANCIAL ACTIVITY OF SENATE INCUMBENTS SEEKING REELECTION IN 1986

Election

Cycle

Early Pbase

1981-82

Mid-Phase

1983-84

Final Phase

1/1/85 -

6/31/85

-

o 5 10

Millions of Dollllrs

7

• Receipts 1- Disbursemen

I

15 
March 1986 FEDERAL ELECTION COMMISSION \blume 12, Numte

FEC v. CALIFORNIANS FOR

DEMOCRATIC REPRESENTATION

On January 9, 1986, the U.S. District Court

for the Central District of California ruled that

Californians for Democratic Representation

(CDR), a nonprofit organization registered with

the California Fair Political Practices Commission, had violated various provisions of the Federal Election Campaign Act in the course of

conducting a slate mail program during 1982.

Background

CDR's slate mail program consisted of political ads distributed through direct mail to the

general public. In addition to endorsing ballot

issues and state and local candidates, CDR's slate

mail program endorsed federal candidates active

in California's 1982 primary and general elections.

Candidates could purchase advertising space from

CDR at fair market value. (A candidate's ad

might include, for example, his/her photograph

and a write-up.) CDR also listed candidates who

did not purchase advertising space, at no charge

to them.

Court's Ruling

The court ruled that those federal candidates

who had paid for advertising space in CDR's slate

maUings had not contributed to CDR; nor did

their advertising space constitute in-kind contributions from CDR to the candidates.

On the other hand, the court found thatcosts

incurred by CDR for listing federal candidates

free of charge in mailings constituted expenditures by CDR on behalf of the candidates, which

were subject to the election law. (Nine federal

candidates were listed free of charge in mailings

for the primary elections, and three candidates

were listed in general election mailings.) Accordingly, the court found that CDR had violated the

election law by failing to register and report as a

political committee when these expenditures exceeded $1,000 during 1982. See 2 U.S.C. §S431

(4}(A), 433 and 434.

Finally, the court ruled that CDR's ads failed

to state who paid for them and whether or not the

candidates had authorized the mailings. See 2

U.S.C. S44ld(a).

The court imposed a $15,000 civil penalty on

the defendants. Subsequently the court denied

defendants' motion to have the penalty reduced.

s

NBW LITIGATION

FEC v, Citizens Party

The FEC asks the district court to:

o Declare that the Citizens Party and its tre

urer; Judi Gerhardt, violated the election 

by failing to file the following reports for 

1984 election year: two quarterly reports

post-general election report and a year-

report (2 U.S.C. §S434(a)(4)(A)(i)-(iii));

o Assess a civil penalty against defendants 

mounting to the greater of $5,000 or an amo

equal to 100 percent of the amount involved 

the violation; and

o Permanently enjoin defendants from furt

violations of the election law.

U.S. District Court for the Northern Dist

of New York, Civil Action No. 85-CY-1576, 

cember 9, 1985.

James Antosh v. FEC (Sixth Suit)

Pursuant to 2 U.S.C. S437g(a)(S)(A), Jam

Antosh petitioned the district court to decl

that the FEC acted contrary to law in dismiss

two administrative complaints that Mr. Ant

filed with the FEe on March 1, 1984, and 

May II, 1984, respectively.

In the March I, 1984, complaint, Mr. Ant

alleged that:

o Senator Edward M. Kennedy, his principal ca

paign committee, the Committee to Re-el

Senator Kennedy, and the committee's tre

urer had knowingly accepted excessive c

tributions for Senator Kennedy's 1982 prim

campaign from the Engineers Political E

cation CommitteefInternational Union of Op

ating Engineers (EPEC/IUOE1; and

o EPEC/IUOE had violated the election law 

making the contributions to the Kennedy ca

paign.

In his May 11, 1984, complaint, Mr. Ant

alleged that:

o Senator Paul Sarbanes, his principal campa

committee, Citizens for Sarbanes, and the co

rnittee's treasurer had knowingly accepted 

cessive contributions from EPEC/lUOE and 

American Federation of Government Empl

ees' Political Action Committee (AFGE-PA

and had failed to report them; and

o EPEC/IUOE and AFGE-PAC had violated 

law by making the contributions to the Sarba

campaign.

Mr. Antosh asked the court to order the F

to act on the complaints within 30 days.

U.S. District Court for the District of 

lumbia, Docket No. 86-0179, January 21, 1986.
March 1986 FEDERAL ELECTION COrvlNlISSION \bIume 12, Numter 

SUMMARY OF MURs

The Act gives the FEC exclusive jurisdiction

for its civil enforcement. Potential violations are

assigned case numbers by the Office of General

Counsel and become "Matters Under Review"

(MURs). All MUR investigations are kept confidential by the Commission, as required by the

Act. (For a summary of compliance procedures,

see 2 U.S.C. §§437g and 437(d)(a) and II CFR

Part n i.)

This article does not summarize every stage

in the compliance process. Rather, the summaries

provide only enough background to make clear the

Commission's final determination. Note that the

Commission's actions are not· necessarily based

on, or in agreement with, the General Counsel's

analysis. The full text of these MURs is available

for review and purchase in the Commission's

Public Records Office.

MUR l7Gl: Fallure to Amend Statement

of Organization; Treasurer's

Responsibilities

This MUR, resolved through conciliation, pertained to a committee which filed its report late,

failed to amend its Statement of Organization and

permitted someone other than the treasurer or

assistant treasurer to sign its reports.

Complaint

The MUR was internally generated by the

Commission in the normal course of carrying out

its administrative responsibilities. A review of the

reports submitted during 1984 indicated that the

committee:

o Filed a late report (2 U.S.C. §434(a)(4)(A»;

o Failed to amend its Statement of Organization

to reflect the appointment of a new treasurer

and a new assistant treasurer (2 U.S.C. S433(c);

o Conducted financial transactions when the office of treasurer was vacant (2 U.S.C. §432(a»;

and

o Had its reports signed by a person who was not

designated on the Statement of Organization as

either the treasurer or the assistant treasurer

(2 U.S.C. §434(a)( 1».

Generlll Counsel's Report

The Commission's investigation revealed that

the committee, having undergone some staff

changes, neglected to file its 1984 quarterly report on time and failed to amend its Statement of

Organization when changes in the offices of trea

surer and assistant treasurer occurr-ed, Furthermore, the reports were signed by an individual

who had not been designated as either the treasurer or the assistant treasurer.

9

However, the investigation made clear th

the committee did, in fact, have an assista

treasurer, acting as treasurer, at the time 

received contributions and made expenditures.

Commission Determination

The Commission found no probable cause 

believe the committee carried out financial tran

actions without having a treasurer or an assista

treasurer. As to the reporting violations, t

Commission agreed with the reeornmendatto

contained in the General Counsel's report and e

tered into a conciliation agreement with the r

spondents. In the agreement, the Committee 

greed to file an amended Statement of Orga

zation reflecting the current treasurer and pay 

civil penalty of $200. The agreement was co

cluded in September 1985.

MUR 2037: Bank Contributions Made in

Connection with State and Local

Elections

Resolved through conciliation, this MUR co

cerned prohibited contributions made by a bank 

connection with state and local elections.

Complaint

The MUR was initiated by the Federal Ele

tion Commission as a result of a referral from t

Supervisory Agent for the Federal Home Lo

Bank Board on May 9, 1985. The General Coun

recom mended that the Com mission find reason 

believe that a federal savings bank (the Bank) h

violated 2 U.S.C. §441b(a) by making contrib

tions in connection with state and local electio

during 1983 and 1984.

General Counsel's Report

The Federal Election Campaign Act prohib

a national bank from making contributions 

expenditures in connection with any election 

any political office (national, state or local), T

Bank, prior to September 30, 1983, was a sta

chartered savings bank ellgible to make contrib

tions to state and local elections. However, 

September 30, the Bank converted to a fede

savings bank, which made it ineligible to ma

contributions for any election. Nevertheless, 

con tinued to make contributions in connecti

with state and local elections--amounting 

$1,465-after the date of the conversion.

Commission Determination

In September 1985 (prior to finding probab

cause to believe the Bank had violated the law

the Commission entered into a conciliation agre

ment with the respondent. The Bank agreed to p

a civil penalty to the Treasur-er of the Unit

States of $730 and not to undertake any activ

in violation of the Act.
March 1986 FEDERAL ELECTION COMMISSION \.bIuma 12, Numo

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March 1986 FEDERAL ELECTION COMMISSION \t)lume 12, Numts

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 employeels 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: Nonconnected PACts use of proceeds

from life insurance policy, 1:8

1985-35: Solicitability of corporate board members, 1:8

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

1985-41: Contribution for general election accepted prior to primary, 2:3

800 LINE

Transfer of candidate funds from state to federal committee, 1:8

COURT CASES

FEC v, Eldredge, 1:10

FEC v, Haley, 1:11

FEC v, MAPAC, 1:10

FEC v. NRA, 1:11

FEC v. Sailors' Union of the Pacific Fund, 2:3

Gramm v, FEC; FEC v. Gramm, 1:10

Alwin Hopfman v, FEC, 2:3

II
March 1986 FEDERALELECTION COMMISSION \blurre 12, Numbe

FEDERAL ELECTION COMMISSION

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Washington, D.C. 20463

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FEDERAL ELECTION COMMISSION

March 1986 999 E Street NW Washington DC 20463 Volume 

This special statistical supplement to the FEe Record presents a graphic summary of campaig

finance activity for the 1983-84 federal election cycle. Information depicted in the charts represen

final figures on the campaign finance activity of: House and Senate candidates, indapendant spender

party committees and political action committees (PACs). The graphs cover activity between Januar

1, 1983, and December 31, 1984; the information has been adjusted for transfers among affiliate

comm ittees. More detailed information may be obtained frorn the five-volume study, FEe Reports o

Financial Activity. 1983-84, Final Report. The study may be purchased at $15 per volume from th

FEC.

The graphs also present preliminary information on the financial activity of Presidential primar

campaigns. The final report for these campaigns will provide a detailed account of their activity.

lIncludes spending by House and Senate candidates for 1984 or a future election or for retirin

debts of former elections.

IIIncumben

Chollenge

II Open Sea

SENATE

Republican

HOUSE

Democratic

o

20

70

40

CHART I

SPENDING BY HOUSE AND SENATE CAlfDIDATES,1 1983-84

Millions of Dol.lats

80 ----------~------ ------..------------

30

50
March 1986 FEDERAL ELECTION COrvllVIISSIOI\J \blum

CHARTll

SOURCES OF FUNDING, 1 1983-84 _ Individual Contributi

W//ZI PAC Contributions2

I I Party Contributions

I I Party Expenditures 3

Candidate Contributi

_ Candidate Loans

Other Receipts 4

HOUSE CANDIDATES

/ /~1J'C---

r-----4

.------3

ii='=~

'li~~l

Challengers

Challengers ~~---5%

~==~.6%0%

5%

.6%

Incumbents

Incumbents

28%

1%

~~t6%

'/~~-27%

.-----~3%

..-----2.5%

3>.6%

~~~7% r" _, ~I':..-'~'----~-. 4%

1.....-----9%

lChart covers funding for aU elections (primary, runoff and general) of those candidates M.Ull1ing 

the November 1984 general election.

2A "PAC" (or political action committee) is a political committee that is neither a candid

committee nor a party committee.

311Party Expenditures" are limited expenditures made by party committees on behalf of fede

candidates in the general election. 2 U.S.C. 441a(d).

4110ther Receipts" include loans, rebates, refunds, contrrmrrons from Wlregistered entities 

other campaign committees, interest and dividends. ~Since there are relatively few Senate candidates, total figures on Senate races mav 

significantly affected by the activity of a single campaign. For example, a West Virginia candida

loons to his campaign and the NOrth Carolina candidates' large proportion of contributions fr

individuals have had significant impact on the overall activity depicted in these charts.

2

Open Seat

SENATE CANDIDATES's

Open Seat
March 1986 FEDERAL ELECTION COMMISSION \blume

CHARTm

INDEPENDENT HXPENDITURES1 IN CONGRESSIONAL RACES, 1983-84

Again

Por

Democrats Republicans Democrats Republicans

For House Candidates

Against House Candidates

For Senate Candidates

Against Senate Can<1idates

For Presidential Candidates

CHART IV

INDEPENDENT EXPENDITUREll IN ALL RACES, 1983-84

Against Presidenti81 Candidates

1. 0 --~--._--

0.8 ----.-----.------.-----

1.4 ~-.-

1. 2 ~-------

I

1.8 --~-----------------r1. 6 ----..-.-.-------~----~____i------

! -----~.--1---~------~._.,;

\

Millions oC Dollars

2.2 ~~_.._------_...._-~..

HOUSE RACES

2. 0 - ..~--"" .. --------~----

o 2 4 6 8 10 12

Millions of Dollars

14 16 

1Under the federal election law, an independent expenditure is an expenditure for a communicatio

expressly advocating the election or defeat of a clearly identified candidate. The expenditure must b

made without cooperation or consultation with the candidate or his/her campaign.

, -
March 1986 FEDERALELECTION COMMISSION 'vblum

CHART V

RECEIPTS] OF PRESIDENTIAL PRIMARY CANDIDATES THROUGH 6/30/85

Millions of. Dollars

40 --------------------------------~--

Individual --~---~.._---------

Contributions

Federal

Matching Funds

Loans

Received

Other Receipts

O......_--"fi;j;i;i~.....

20 ------------

10--------

-~•

30---- ~.

I Includes total receipts minus transfers between each candidate's authorized committees.

2The Cranston for President Committee has not identified all the sources of fr.mds received dur

1984. Consequently, some of the receipt categories may eventually be larger (e.g., individ

contributors).

4
March 1986 FEDERAL ELECTIOI\l COMMISSION 'vblume 

CHART VI

1984 PRESIDENTIAL GENERAL ELECTION

MondaleiFerraro

Reagan/Bush

o 10

l

20 ,30

Millions of Dollars

• Federal Funds

I11]p8I'ty

tltI Expenditures 1

•

Contributions to

Compliance Fun

DEMOCRATIC RECEIPTS BY SOURCE

$291.9 million

TOTAL $ 98.5 million

TOTAL

.-------------- Individual Contributions (81.9%) $262.0 million

. I PAC Contributions (0.6%) 1.1 million

":!:I'liJ~ Other Reeeipb' (U.5%) 34.2 miD;••

......

::..

ISee 2 U.S.C. 441a(d).

2Fund supports legal and accounting services related to compliance with the election law.

.-------------- Individual Contributions (59.2%) $ 58.3 million

;;:----------- PAC Contributions (6.6%) 6.5 ,million

,5

'Includes total receipts minus transfers among each party's committees• 2Other receipts include contributions from other political committees and unregistered organiz

tions (e.g., local party organizations); loans or loan repayments received bY party committees; offse

to expenditures; dividends, interest and other miscellaneous income.

REPUBLICAN RECElPTS BY SOURCE

CHARTVll

RECEIPTS' OF MAJOR PARTIES, 1983-84

•
March 1986 FEDERAL ELECTION COMMISSION .

Volume 

CHARTVDI

RECEIPTSl OF NATIONAL PARTY COMMITTEES, 1983-84

Millions of Dollars

'250----

Contributio

Coordinate

Expenditur

--_._---

10

$106.1 million 

$ 81.6 million --

$ 58.3 million

6 8

10 15

Millions of Dollars

REPUBLICANS

6

5

4

$ 8.9 million

$10.4 million ----

~l2l ~---,----,-- 6 0, 2 4

Millions of Dollars

DEMOCRATS

o

Congressional --------

Committee

National

Committee

Senatorial

Committee

•

Democratic Party

50·------

75 ---~-----------~-----..~----.-

$46.6 million

100 - ---

125 -~~------

225 _.-

200-----

175-----

150 ----~--~-----

I Includes tDtal receipts minus tronsiers bet ween each partys respective committees.

CHART IX

MAJOR PARTY SUPPORT OF FEDERAL CANDIDATES, 1983-84

National Committee

State andLocal

Committees

Senatorial Committee

Congressional Committee

Total Democratic

Support

Total Republican

Support
. March 1986 FEDERAL ELECTION COMMISSION \k:llume 

CHART X

FINANCIAL ACTIVITY OF PACs, 1983-84

Contributions 

Reeelpts '

Disbursemen

Millions of Dollars

110 -----'.-------.--~.

100

90

70

60

50

40

30

20

10

o

--_.~~- [ill

-~------------_...--- m1 _____.._ .. . "' II~C_8S_h-o_n-Hand

CorporationsLabor

Organizations

Non-Connected

Organizations

Trade/Mem- Cooperabership/ tives

Health Organizations

Corporations

w/o

Stock

Total Number

of

Committees 3

Number of

Committees

Making

Contributions

1,809

1,521

438

289

1,146

517

757

575

58

50

139

94

•

1Receipts and disbursements do not include funds transferred between affiliated committees.

2 Includes contributions to committees of: 1984 House and Senate candidates; and all feder

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

[orme» campaigns.

3Includes total number of PACs active in federal elections at any time between January .1, 198

and December 31, 1984. Since some committees have terminated, this fiqure does not represent a

committees active as of December 31, 1984.

7
March 1986 FEDERAL ELECTION COMMISSIOI\J .. Volum

CHART XI

PAC CONTRIBUTIONS TO HOUSE AND SENATE CANDIDATES, 1983-84

Millions of Dollars

50

40

30 ----------1:

20

Status of Candid

• Open Sea

• Challeng

m;:::::;:::

··'··

Incumbe

.:.:.:.:.:

10

0--- Democratic Candidates

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

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

Lee Ann Elliott; Danny Lee McDonald; Thomas E. Harris; Thomas J. Josetiakj Jo-Anne L. Coe

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

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

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