• 

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THE FEDERAL ELECTION 

COMMISSION 

1325 K Street N.W., Washington, D.C. 20463 

Volume 4, Number 3 

REGULATIONS 

FEC PERMITS CORPORATE AND UNION 

CONTRIBUTIONS TO NONPARTISAN GROUPS 

FOR CANDIDATE DEBATES 

By a vote of 4 to 2, the Commission approved on 

December 8, 1977, proposed regu latory language which 

would permit corporations and labor organizations to 

donate funds to certain nonprofit groups for use in the 

sponsorship of candidate debates. The proposed regulation states: 

A corporation or labor organization may 

donate funds for use in the sponsorship of nonpartisan public debates if the donation is made 

to a nonprofit organization which is exempt 

from Federal taxation under 26 U.S.C. §501 (c) 

(3), which has a history of neither supporting 

nor endorsing candidates or political parties, 

and which administers the debates. 

Nonprofit organizations which are tax exempt under 26 

U.S.C. § 501 (c)(3) include those which do not attempt to 

influence legislation or political campaigns and to which 

contributions are tax deductible. 

Last fall, the FEC issued an informational response concerning the League of Women Voters' sponsorship of the 

1976 Presidential general election debates. (See Record, 

January 1977, p. 6.) In that statement, the FEC had expressed the view that the League could sponsor the debates, 

but that "disbursements by the League's Education Fund 

[were] . .. disbursements 'in connection with' a Federal 

election and accordingly [cou ld] not be made with funds 

from corporate or labor organization treasuries .... " 

Prior to adopting the proposed regulation, in a notice 

published in the Federal Register on July 12, 1977, the 

F EC asked for written comments, possible regulatory 

language, and factual material related to the sponsorship 

and funding of candidate debates. (See Record, August 

March 197

1977, p. 2.) In addition, on September 12, 1977, the Com

mission held public hearings on problems related to th

funding of candidate debates. (See Record, Novembe

1977,p. 1.) 

All regulations proposed by the Commission must be sub

mitted to Congress and may be prescribed by the Commis

sion only after thirty legislative days have passed, durin

which time either the House of Representatives or th

Senate may disapprove the proposed regulation. 

LEGISLATION 

CONGRESS ADOPTS AMENDMENT 

ON HONORARIA 

On December 20, 1977, Congress amended 2 U.S.C

§441 i concerning the acceptance of honoraria by electe

or appointed officers of the Federal government. Th

amendments, which were adopted as a rider to the Socia

Security bill (H.R. 9346). apply with respect to any hono

rarium received after December 31, 1976. The new prov

sions are: 

1. A Federal officeholder may request that any honorarium 

be paid not to him/her, but instead to a charitable organ

ization selected by the payor from a list of five or mor

charitable organizations provided by the officeholde

In this case, the officeholder will not be considered, fo

purposes of the honorarium limits, to have accepte

that honorarium. 

2. For purposes of determining the aggregate amount o

honoraria accepted by an officeholder during any calen

dar year, amounts returned to the person paying a

honorarium before the close of the calendar year 

which it was originally received will be disregarded . 

3. An honorarium is considered to have been accepted on

in the year in which that honorarium was actual

received. 
OPINIONS 

PENDING ADVISORY OPINION REQUESTS 

The fol lowing chart lists pending Advisory Opinion 

Request s (AOR's), with a brief description of the subject 

matter, the date the requests were made public and the 

number of pages of each request. The fu ll text of AOR 's 

is available to the public in the Commission's Office of 

Public Records. 

AOR Subject 

1977-67 Solicitation of 

Members of Connected Organization 

1977-69 Magazine Published 

by Connected Organization of PAC 

1977-70 Sol icitations to PAC 

1977-71 Solicitations to PAC 

1978-3 Expenditures by 

Member of Congress 

1978-4 Commemorative 

Committee Honoring 

Congressman 

1978-5 Use of Campaign 

Contributions for 

Candidate's Personal 

Living Expenses 

Date Made 

Public 

12/7/77 

12/ 12/ 77 

1/ 10/78 

12/29/77 

1/25/78 

2/1/78 

2/ 1/78 

1978-6 Compensation Paid to 2/ 1/78 

Practicing Lawyer Who 

is Federal Candidate 

1978-7 Contributions by 2/14/78 

an Estate 

1978-8 Stock Ownership Plan 2/7/78 

1978-9 Activity by State 

Party Organi zation 

2/7/78 

Number of 

Pages 

3 

2 

6 

7 

2 

2 

4 

6 

ADVISORY OPINIONS: SUMMARIES 

Designated as AO's, Advisory Opinions discuss 

application of the Act to specific factual situations. A

qualified person requesting an Advisory Opinion who 

. good faith acts in accordance with the opi nion will 

be penali zed under the Act. The opinion may also 

relied on by any other person involved in a specific t ra

action which is indistinguishable in all material aspects fr

the activity discussed in the Advisory Opinion. 

RECONSIDERATION OF 

RE : AOR 1976-106: Stock Ownership Plan 

At the request of Continental Oil Company (CONOC

the Commission agreed on September 22, 1977, to rec

sider its response of December 30, 1976, to an advis

opinion request from CONOCO concerning its Employ

Stock Ownership Pl an. (See Record, January 1977, p. 

On December 8, 1977, the Commission fail ed to approve 

reverse the position it had originally set forth in the le

to CONOCO on December 30, 1976. Accordingly, 

informational letter (R e: AOR 1976-106) may no longer 

regarded as an expression of the majority view of the Co

mission. (Length : 2 pages) 

AO 1977-44: Solicitations by Federation 

of Trade Associations 

The Association of Trial Lawyers of America (ATL

a nonprofit membership corporation comprised of in

viduals, may administer and solici t contributions to 

Attorneys Congressional Campaign Trust (ACCT), a mu

candidate committee formed in 1975. ATLA is ackno

edged as the "connected organization" of ACCT. 

ATLA's affil iate organizations (including branch t

lawyers organizations in four Stat es and official affili

trial lawyers organizations in 45 States, Puerto Rico a

the District of Columbia) are considered trade asso

tions and ATLA is considered a federation of trade asso

tions. Consequently, ATLA and its affil iates may eit

engage in a joint solicitation of the members of AT L

affil iated associati ons, or the affil iated associations m

delegate their solicitation rights to ATLA. Moreover, a lo

organization affiliated with a State affiliate is considere

" local affiliate" of ATLA. Members of these local affilia

are thus within the permissible class of sol icitees of 

national organization, ATLA. The State affiliates may a

solicit members of the local affiliates. 

Contributions received by ACCT as a result of impro

solicitation of persons who were not members of eit

ATLA or its affiliates are required to be returned to 

The RECORD is published by the Federal Election Commission, 1325 K Street, N.W. , Washington, D.C. 20463. 

Commissioners are: Thomas E. Harris, Chairman; Joan D. Aikens, Vice-Chairman; William L. Springer; Neil Staebler; 

Vernon W. Thomson; Robert 0 . Tiernan; J.S. Kimmitt, Secretary of the Senate, Ex Officio; Edmund L. Henshaw, Jr., 

Clerk of the House of Representatives, Ex Officio. 

For more information, call 523-4068 or toll free 800-424-9530. 
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donors or utilized in a lawful manner which does not 

constitute a "contribution" or an "expenditure" under 

the Act. Unsolicited contributions from nonmembers, 

however, if otherwise lawful under the Act, may be accepted by ACCT. 

The advisory opm1on explicitly declined to state any 

conclusion with respect to the legality of past solicitations by ACCT. ATLA or any of its branches or affiliates. (Length: 6 pages) 

AO 1977-50: Officeholder Expenses Paid 

by the National Repul:)lican 

Senatorial Committee 

Certain payments made by the National Republican 

Senatorial Committee (NRSC) on behalf of particular 

Senators would not be contributions or expenditures 

unless the payments were made for the purpose of influencing their nomination or election to Federal office. 

With regard to a specific list of different types of payments submitted by N RSC for Commission approval, 

the Commission said it could not determine whether 

the payment was a contribution or expenditure without 

evaluating all the circumstances and facts in the situation 

where a particular payment was contemplated. (The list 

of payments included, among others, travel for official 

business, entertainment of constituents and staff salaries.) 

If the payments were contributions or expenditures, they 

wou ld have to be reported by both N RSC and the candidate benefiting from the payment. Even if the payments 

did not entail the making of contributions or expenditures, 

N RSC would nevertheless be required to report them as disbursements. Furthermore, the Senator on whose behalf an 

NRSC payment was made would have to report the payments as receipts and corresponding disbursements under 

11 CFR § 113.1 (a) dealing with "funds donated" to a 

Federal officeholder " ... for the purpose of supporting the 

activities of a Federal ... officeholder." This language 

would cover circumstances where NRSC made payments to 

vendors to provide materials or services to participating 

Senators. (Length: 4 pages) 

AO 1977-52: Retiring 1974 and 1976 Debts; 

Transfer of Debts 

Hess Dyas' 1974 campaign committee (for the House of 

Representatives) and his 1976 committee (for the Senate) 

may transfer their debts and obligations to Dyas' 1978 

campaign committee (for the House). The 1974 and 1976 

committees may then terminate, passing on their reporting 

obi igations for the 1974 and 1976 debts to the 1978 campaign committee. That committee would be required to 

itemi ze the 1974 and 1976 (primary election) debts, and 

contributions designated to retire those debts, separately on 

Form 3, Schedules A and C. 

The 1978 campaign committee may use contributions to 

retire the 1974 and 1976 debts only if contributors are informed that the1r contributions will be used in this manner 

and if the contributions are expressly earmarked for that 

purpose (for example, by notation on a check). Contributions designated and used to retire the 1974 debt are not 

limited since no contribution limits applied to that election. 

3 

On the other hand, contributions designated to retire th

1976 campaign debts are subject to the 19761imits. Person

may designate contributions to retire the 1976 debt only t

the extent they have not previously "used up" their limi

applicable to the Senate primary election in 1976. 

The Commission declined to state an opinion on wheth

the Dyas committee could use excess campaign funds fro

the 1978 campaign to retire the 1974 and 1976 debts sinc

the question was hypothetical. (Length : 4 pages) 

AO 1977-53: Activity by Foreign-Based 

Trade Association 

The Asia-Pacific Counci l of American Chambers of Com

merce (APCAC) may not establish a political committee 

support Federal candidates because it is considered 

"foreign national." The Act expressly prohibits a foreig

national from making any contributions in connection wi

a Federal election. 2 U.S.C. §441 e. APCAC is deemed to 

a foreign national because: 

-- A "foreign national" includes an association or organiz

tion whose place of business is in a foreign country (

U.S.C. §611 (b)); 

-- APCAC is comprised of member American Chambers 

Commerce or American business groups (AMCHAM

located in and having their principal place of busine

in ten countries; and 

-- APCAC's budget is provided by its member foreign pr

cipals. 

Since the statutory prohibition against election-connect

contributions by foreign nationals is unqualified, APCA

and the member organizations providing its budget may n

establ ish a "separate segregated fund," as defined in 

U.S.C. §441b(b)(2)(C). (Length: 3 pages) 

AO 1977-64: Use of Excess 

Campaign Funds 

The distribution of excess campaign funds by Marga

Costanza, former candidate for Congress, to the Americ

Cancer Society and Camp Haccamo is expressly made la

ful by 2 U.S.C. §439a, if those organizations are qualifi

charities under 26 U.S.C. § 170(c). (Length : 2 pages) 

AO 1977-66: Use of Committee's 

List of Contributors 

The Title Industry Political Action Committee (TIPAC

a multicandidate committee, may use a list of 1977 co

tributors to TIPAC for its 1978 solicitation campaig

Even though the list dupl icates information submitt

on TIPAC's reports to the Commission, the list was co

piled by TIPAC from its own information. Moreov

TIPAC's use of its own contributor list for its own soli

tation program by its own agents (a committee of Sta

advisory trustees) does not involve the kind of "comme

cial purpose" prohibited in 2 U.S.C. §438(a)(4). (Leng

2 pages) 

AO 1977-68: Federal Candidate May be 

Employed by Bank 

Peter Cooke, a Federal candidate, may fulfill the terms 

his em ployment contract with Tracy Collins Bank a

continu
Trust (the Bank) without the compensation being regarded 

as a contribution or expenditure, provided that " ... a bona 

fide employment relation exists between the parties for 

purposes genuinely independent of Mr. Cooke's candidacy 

and that any compensation paid by the Bank to Mr. Cooke 

is exclusively in consideration of services performed by him 

as the Bank's legislative lobbyist." Mr. Cooke's contract 

states, among other provisions, that he will: devote a minimum of 40 hours a week to serving as legislative lobbyist 

for the bank; not count, as part of his minimum work 

week, time spent in connection with personal political 

activity; keep available for Bank inspection a log of political 

campaign-related phone calls made from Cooke's office at 

the Bank; and promptly reimburse the Bank t or the cost, 

including added overhead, of any "occasional, isolated or 

incidential" use of Bank faci lities in connection with personal pol itical activity. (Length : 2 pages) 

800 LINE 

The Public Communications Office of the Federal Election Commission receives numerous inquiries from the 

public on the toll-free line (800/424-9530). The following 

explanation of some specific reporting requirements is presented in response to several frequently asked questions. 

JOINT FUNDRAISING 

Candidates and their authorized committees may engage 

in joint fundraising with other candidates and pol itical committees. 110.3(a)(2)(i). The following guidel ines (offered 

by the Commission in AO's 1977-14 and 1977-23) should 

be followed: 

CONTRIBUTION LIMITS 

Contributions raised through JOint fundraising must 

comply with contribution limits, per candidate and per 

year. An accounting system must be used to ensure this 

compl iance. 

ALLOCATION OF CONTRIBUTIONS 

AMONG PARTICIPATING CANDIDATES 

Contributions must be divided among the participating 

candidates according t o a formula predetermined by the 

candidates. A donor who has already contributed to one of 

the candidates may, however, allocate hi s/her contribution 

to make sure he/she does not exceed the cand idate contribution limits. 

SOLICITATIONS 

Solicit ations must inform the donor: 

1. About the formula adopted for allocating funds among 

the participating candidates. 

2. That contri bution limits apply t o any contributions 

made to the joint fundraising effort. 

3. That the donor has the option to allocate his/her cont ribution among the participating candidates, rather than 

allowing it to be divided according to the predetermined 

formula. 

4. How to allocate the contribution among the participating candidates, if the donor chooses to do so. 

4 

The Solicitation Notice ( 1 02.13) and the Authoriza

Notice ( 110.1 1 (a) (1)), required on all solicitations, m

identify al l the participating candidates. 

FUNDRAISING COSTS 

Fundraising costs, including any advances for prep

expenses, must be allocated among the participating c

mittees according to the same formula adopted for allo

ing the contributions. Any other allocation results in a c

tribution (subject to limits) by the committee which p

more than its proportionate share. 

USE OF SEPARATE COMMITTEE 

A separate political committee may be designated by 

candidates to conduct the joint fundraising, provided t

the bank depository designated for the committee's us

also designated by each participating candidate as one 

his/her depositories. Distributions by the separate com

tee are considered transfers from an agent. As such, t

are not limited. 

REPORTING 

Each candidate (or authorized committee) must re

his/her portion of contributions received. Those contr

tions which exceed $ 100, when added to other contr

tions from the same donor, must be fully itemized 

Form 3, Schedule A. 

FEC PUBLIC APPEARANCES 

In keeping with its objectives of making informa

tion available to the public, the Federal Election 

Commission regularly accepts invitations for it

representatives to address public gatherings on the 

subject of campaign finance laws and the Commission 

itself. (For a summary of the Commission's policy on 

accepting invitations, see the Record, July 1977, p

6.) This regular column will list scheduled Commis

sion appearances, detailing the name of the sponsor

ing organization, location of the event and the Com

mission's representative. Any inquiries concerning 

the event should be addressed to the sponsoring 

organization. 

3/9 

3/10 

Hope Col lege 

Washington, D.C. 

Commissioner Nei l Staebler 

The American Land Title Association 

Mid-Winter Conference 

Phoenix, Arizona 

Vice Chairman Joan Aikens 

3/ 16-17 Practicing Law Institute 

" The Corporation in Politics" 

San Francisco, Cal ifornia 

Vice Chairman Joan Aikens 

3/21 Public Relations Society 

Washington, D.C. 

Jan Baran, Executive Assistant to 

Vice Chairman Aikens 
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PUBLICATIONS 

NEW CAMPAIGN GUIDE FOR CANDIDATES 

The Commission's most comprehensive Campaign Guide 

was published in February 1978. Focusing exclusively on 

matters of interest to candidates for the House and Senate 

and their campaign committees, the new Guide incorpo: 

rates and e laborates upon material contained in three 

previous Campaign Gu ides: Campaign Guide for Candidates, Campaign Guide for Committees and Campaign 

Guide on Contributions and Expenditures. The new Guide, 

printed as a binder insert, covers the following topics: 

I. Basic Understanding of Contributions and Expenditures 

II. Starting the Campaign 

A. Definition of Candidate 

B. Registration Requirements 

Ill. Conducting the Campaign 

A. Assessing Campaign Resources: Contributions, 

Independent Expenditures, Volunteer Activity, 

Party Expenditures, Personal Funds, Free Legal 

and Accounting Services 

B. Other Activities: Fundraising, Traveling, Advertising and Consulting 

IV. Recording Requirements 

V. Reporting Requirements: Who, Where, When, What 

Forms, How to Fill Out Reports, Waivers, Liability 

VI. Winding Up the Campaign 

A. Retiring Debts 

B. Use of Excess Funds 

C. Termination of Reporting 

SURVEY OF STATE ELECTION OFFICERS: 

DISCLOSURE OF FEDERAL ELECTION 

CAMPAIGN REPORTS IN THE STATES 

The Federal Election Commission has released an 

updated Survey on State disclosure of Federal election 

campaign reports. Under the Act (2 U.S.C. §439), each 

Secretary of State or equivalent officer is required to : 

-- Maintain reports on expenditures and contributions 

made in connection with Federal e lections. 

-- Preserve these reports for a statutory period. 

-- Make these reports available for public inspect ion and 

copying. 

-- Compile and maintain a current list of all reports, or 

parts thereof, pertaining to each Federal candidate. 

The survey of 50 States was conducted to define problems 

State election officers experienced in administering §439 

of the Act and to formulate recommendations for administrative and legislative changes in this area. Additionally, the 

responses indicated ways in which the Commission could 

assist States in fulfilling their responsibilities under the Act. 

The survey reported the following key findings: 

-- Of 49 States responding to the su rvey, 31 said they 

wou ld be will ing to use a periodic FEC printout listing 

5 

of reports and statements to check the completeness 

their Federal filings. (As we go to press, 37 States h

participated in this project.) 

-- All but two States said they made reports available 

the public in either the original or as a photocopy 

the original. 

-- The cost per page for copying Federal reports rang

from 5 cents a page in Arizona and Pennsylvania 

$1.50 per page in Alabama. 

-- Nearly 3,000 people per month view the docume

at the State level during a "peak period" (between 

days before an election and 30 days after). compared 

approximately 800 people per month at the Washingt

D.C. Public Records office during the same period. 

Among the recommendations made by States responding 

the survey were the following: 

-- Thirteen State officers suggested that, to perform 

required functions under 2 U.S.C. §439, Federal re

bursement for costs of implementation was necessa

-- Ten State election officials noted that the pres

Federal campaign finance record retention period w

too long and should be reduced. 

-- Most States endorsed the idea that, in any given Sta

multicandidate committees should file only those do

ments pertaining to elections held in that State. 

FORMS: 

Forms for candidates and committees to register 

and report are available at any time by contacting: 

Office of Public Communications 

Federal Election Commission 

1325 K Street, N.W. 

Washington, D.C. 20463 

Toll Free: 800/424-9530 

Local : 202/523-4068 

Alternatively, candidates and committees may make 

and use photocopies of standard FEC forms. 

COMPLIANCE 

FEC PUBLISHES LIST 

OF 1977 NON FILERS 

On January 9, 1978, the Federal Election Commissi

published the names of Federal candidates, their princip

campaign committees and other political committees whi

failed to file required reports of their campaign financ

during 1977. Candidates and their authorized committe

were required to file a 1976 year-end report on January 3

1977, if their receipts or expenditures in the fourth quar

of 1976 exceeded $1 ,000 or if they had any debts o

continu
standing on December 31, 1976. Candidates and their 

authorized committees were also required to file a quarterly 

report (April 10, July 10 and October 1 0) for any quarter 

in which the combined total of their receipts and expenditures exceeded $5,000. All other political committees had 

to file a 1976 year-end report and 1977 quarterly reports 

for any quarter in wh ich they raised or spent over $1 ,000. 

Candidates and committees which were exempt from filing 

a quarterly report (because their financial activity did not 

exceed the threshold reporting level described above) nevertheless had to notify the Commission of this fact by letter 

or the FEC Form 3a postcard at the end of the first quarter 

in which the exemption applied. 

Under FEC procedures, three notices are sent to candidates 

and committees reminding them of their reporting obligations and urging compliance. If a candidate or committee 

continues not to file the required report(s) following the 

mailing of these notices, the name of that "nonfiler" is 

made public. 

The first notice called a "prior notice" is sent on a routine 

basis prior to each filing date to all candidates on election 

ballots and to all other candidates and political committees 

registered with the Commission. This notice simply reminds 

candidates and committees of the required report and the 

appropriate fi ling date. The second notice is sent only to 

candidates and committees whose reports have not been 

received by the fi ling date, and states that this "apparent 

failure to file ... " gives the Commission "reason to believe" 

that the candidate or committee is in possible violation of 

the reporting requirements. The third notice is sent only 

to candidates and committees whose reports are not filed 

in response to the second notice. It states that continued 

failure to file has given the Commission "reasonable cause 

to believe" that they are in possible violation and that failure to respond may subject the candidate or committee to 

civil penalties. 

In addition to publishing the names of nonfilers, the FEC 

has the authority to undertake enforcement action under 

the statute, including civil suits and the imposition of 

civil fines (up to $5,000 for "any violation" and up to 

$10,000 for a "knowing and willful violation"). 

Included in the list of nonfilers were: 

-- Two committees exclusively supporting a single Presidential candidate. 

-- Seven Senate candidates (or their authorized committees). 

-- One House candidate. 

-- Twenty-two committees authorized by House candidates. 

-- Two party committees. 

-- Five nonparty political committees. 

6 

THE LAW 

IN THE COURTS 

NATIONAL RIGHT TO WORK 

COMMITTEE et al. v. FEDERAL ELECTION 

COMMISSION et al. (Part II) 

On December 20, 1977, defendant Federal Elec

Commission asked the U.S. District Court for the Eas

District of Virginia to dismiss the action of the Nati

Right to Work Committee (NRWC), a corporation, aga

the Commission. (For a summary of N RWC's position

the Record, December 1977, p. 2.) The Commission m

two basic arguments: 

"This court lacks jurisdiction over the subject matter of 

case .... since the FEC has been adhering to the cong

sional scheme for enforcement and review [which) all 

only for the FEC to file suit to determine violations of 

Act .... " The Commission pointed out that its deci

that "there is probable cause to believe that a violatio

FECA has taken place is merely a preliminary step in a 

cess that provides plaintiffs, in defending against a Com

sion suit, with the opportunity to raise all defenses, a

the applicability of any provisions of the Act and objec

the Commission's procedures." Furthermore, the Com

sion said, "relying on any of the jurisdictional grou

asserted by plaintiffs will effectively short-circuit 

detailed operation of the Act and subject its interpreta

to a multiplicity of forums." 

In its second argument, the Commission said : "Assum

[for argument's sake], that there may be subject ma

jurisdiction, the plaintiffs have still failed to state a c

upon which relief can be granted." Supporting this a

ment, the FEC asserted, first, that "2 U.S.C. §441b(b

of the Act [which permits membership organization

solicit their members, but not the general public] does 

unconstitutionally infringe on plaintiffs' rights guaran

to them by the First and Fifth Amendments to the Co

tution." The FEC said that the Supreme Court has re

nized that a corporation's First Amendment freedoms m

be balanced with the right of the society to ensure 

integrity of its democratic process, and that the power

the corporation may have to give away to the greater g

The F EC went on to point out that "since N RWC's Art

of Incorporation foreclose it from being a member

corporation ... " the solicitation of its "supporters" m

be seen as "being directed at the general public, whi

exactly what Congress intended to prohibit." The fact 

NRWC cannot solicit those who merely "support" it 

"it bestows on them the rights and obligations that 

from true membership in a membership corporation is 

violative of due process of law." 

The F EC further supported its argument that plaintiffs 

failed to state a claim upon which relief can be grante

stating the "the FEC is an investigatory and prosecut

agency vested with broad discretion and as such its c

pliance procedures do not deprive plaintiffs of due pro

of law." Claimants have asked tor a hearing but, the 
• 

• 

points out, "nowhere in the present Act is a hearing 

required before the FEC can file an enforcement suit in a 

district court .... " Moreover, " ... the decision to seek 

enforcement of the Act in district court is only a preliminary step in the administrative proceeding and the Supreme 

Court has repeatedly held that no hearing is required at this 

stage so long as the requisite hearing is held before a final 

binding order is issued." Such a hearing will be held when 

the District Court hears the F EC's enforcement action. 

Finally, the FEC argued that its decision not to issue an 

advisory opinion to the Employee Rights Campaign Committee (ERCC), the political committee administered by 

N RWC, is valid in light of the nature of the request. ERCC's 

advisory opinion request concerned the legality of its soliciting N RWC's supporters under the membership organization provision of the Act. Under the Act, the Commission 

may render opinions only to requests concerning the application of a general rule of law (as stated in the Act and FEC 

regulations) to a specific factual situation. The Commission 

contends that, when it requested more information regarding the specific factual situation applicable to ERCC, i.e., 

the criteria used to determine NRWC's members, ERCC did 

not supply sufficient information. It was therefore impossible for the Commission to respond to the advisory opinion request and still be in compliance with the Act's 

requirement that advisory opinions be issued only in regard 

to specific factual situations. 

FEC v. NATIONAL EDUCATION ASSOCIATION 

{Part II) 

On November 10, 1977, the National Education Association (NEA) and 17 of its State affiliates answered the FEC's 

suit and filed a counterclaim. (For a summary of the suit, 

see the Record, November 1977, p. 2.) In the counterclaim, 

defendant asked the District Court for the District of 

Columbia to declare that: 

(a) Political contributions col lected by NEA 

through the reverse checkoff, when that is the only 

method individuals may use to become NEA members, do not constitute monies required as a condition 

of membership in violation of Section 441 b(b) (3) (A) 

of the Act; 

(b) Political contributions collected by NEA 

through the reverse checkoff from individuals who 

elect to utilize payroll deduction instead of the 

annual cash payment or installment cash payment 

options, do not constitute monies required as a condi· 

tion of membership in violation of Section 441 b(b) 

(3)(Al of the Act; 

(c) Political contributions collected by NEA 

through the pre-membership reimbursement system 

do not constitute monies required as a condition of 

membership in violation of Section 441 b(b)(3) (A) of 

the Act ; 

(d) If Section 441b(b)(3)(A) of the Act 1s applied 

to prohibit NEA from collecting political contributions through [the various alternative systems set 

out above I , said section violates the rights of N EA 

and its members under the First and Fifth Amend· 

ments to the United States Constitution; and 

(e) In prohibiting NEA from requiring political 

contributions as a condition of membership, Section 

7 

441 b(b) (3)(A) of the Act violates the right of N EA 

and its members under the First and Fifth Amend

ments to the United States Constitution. 

The New Jersey Education Association (NJEA). one 

the eighteen State affiliates originally named in the laws

has returned all funds collected through the reverse che

off procedure and has agreed that, unless the legality of 

procedure is ultimately upheld, it will not reinstitute 

system. Consequently, the Commission has agreed to a 

missal of NJEA from the lawsuit, which the District C

has approved. 

STAFF 

NEW DIVISION OF REPORTS ANALYSIS 

Effective January 1, 1978, the Commission establish

new division, the Reports Analysis Division comprised 

the five Reports Analysis branches previously assigned 

the Disclosure Division: Presidential, Nonparty, P

Related, Senate and House. The Reports Analysis Divi

is headed by Assistant Staff Director Thomas Haselh

who was appointed on February 13, 1978. 

The Public Disclosure Division will continue to have res

sibility for public records, reports processing, statis

compilation and data entry functions assigned by the S

Director's Office. 

The purpose of the reorganization is to give the Com

sion greater capability to monitor and enforce the dis

sure requirements of the Act, particularly through a m

comprehensive analysis of reports, a systematic applica

of nonfiling procedures and a more structured approac

pre-compliance notifications. 

NEW APPOINTMENTS 

During recent months, several new appointments 

senior staff were made. James Pehrkon, formerly ac

Assistant Staff Director for Data Systems, became 

permanent Director of this division on August 14, 1

Effective October 21, 1977, Robert Costa was appoi

Assistant Staff Director in charge of the Audit Divis

Mr. Costa had been serving as the acting Director of A

since May 1977. Mark Gersh was appointed Directo

Planning and Management in January 1978. Effe

December 4, 1977, Richard Thomas became Coordin

of State Disclosure. He will serve as liaison between S

elections offices and the Commission tor purpose

implementing §439 of the Act. That section req

States to maintain for public inspection copies of elec

reports fi led by Federal candidates and political com

tees. In addition to these appointments by the Staff D

tor, Margaret McCormick began serving as Chair

Thomas Harris' Executive Assistant, effective August 1
STATISTICS 

DATA ON POLITICAL COMMITTEES 

The Commission released preliminary 1977 campaign 

finance figures, showing that 1,360 "political action committees" (PAC's) (committees not connected with a particular candidate or political party) raised a total of $23.6 

million during most of 1977 and spent $14.8 million, including $2.7 million in contributions to Federal candidates. 

A summary of the preliminary figures follows: 

Receipts: PAC's of t rade associations and membership 

organizations received 34 percent ($8.1 million) of funds 

received by all PAC's active in 1977; labor o rganization 

PAC's received 31 percent ($7.2 million) of total receipts; 

and corporate PAC's received 15 percent ($3.6 million). 

Expenditures: Trade association and membership organization PAC's spent 33 percent ($4.9 million) of the total 

funds spent by all PAC's active in 1977; PAC's with no 

"connected organization" made 28 percent ($4.1 million) 

of total expenditures by PAC's; labor organization PAC's 

made 25 percent ($3.7 million) of total expenditures; and 

corporate PAC's spent 10 percent ($1.5 million). 

Contributions: In direct contributions to candidates and 

their campaign committees (for either past or current election campaigns). labor organization PAC's made 36 percent 

($987,000) of the total contributions made by all PAC's; 

trade association and membership organization PAC's made 

31 percent ($834,000) of the contributions; and corporate 

PAC's contributed 22 percent ($583,000). Figures also 

covered the allocation of contributions, by each type of 

PAC, according to candidates' party affiliation and to the 

office sought. 

Expenditures on Behalf of Candidates: Less than one percent of PAC expenditures were made on behalf of candidates. These expenditures included "independent expenditures," honoraria, ballot recount expenditures and payment 

of legal and accounting costs. 

Registration: During 1977, 1,360 PAC's were registered in 

the following categories: 

Corporate PAC's 

Labor Organization PAC's 

Trade Association, Health and Membership 

Organization PAC's 

PAC's with "No Connected Organization" 

PAC's Established by Cooperatives 

Corporation Without Capital Stock PAC's 

TOTAL 

550 

234 

438 

110 

8 

20 

1,360 

The FEC figures, derived from reports filed by committees 

themselves, were complete as of September 30, 1977, for 

committees filing quarterly reports. For committees filing 

on a monthly basis, figures were complete as of November 

30. A complete 1977 study will be released by the Commission once the year-end reports (due January 3 1, 1978) are 

analyzed. 

8 

STUDY ON LABOR-RELATED 

POLITICAL COMMITTEES 

A recent FEC study of receipts and expenditures 

labor-related political action committees (PAC's) during 

1976 elections shows that the 42 largest labor-related PA

(those which raised or spent more than $1 00,000) mad

total of $8.2 million in contributions to and expenditu

on behalf of Federal candidates. These 42 committe

representing only 13.9 percent of all labor-related PA

active in 1975-76, made 83.6 percent of total expenditu

by all the labor-related PAC's. Their total "adjuste

receipts during 1975-76 were $14.9 million and their to

"adjusted" expenditures during the same period amount

to $14.2 million. (Figures were "adjusted" to exclude tra

fe rs of funds between affiliated committees.) 

Adjusted expenditures may include, in addition to dir

contributions to Federal candidates or expenditures 

their behalf, spending for the following items: fundraisi

costs to raise money for the PAC, staff salaries and oth

operating expenditures of the PAC, legal and accounti

expenditures, contributions to State and local candidat

contributions to National, State, or local political pa

committees, and other miscellaneous activities of the PA

not directly related to Federal e lections or Federal can

dates. 

The study also indicates that, altogether, 303 labor-relat

committees filed reports in 1975-76. 

FEDERAL REGISTER 

NOTICES 

FEC documents of general applicability are published 

the Federal Register. The following list identifies all F

documents appearing in the Federal Register betwe

December 20, 1977, and February 22, 1978. 

Notice 

1978-1 

Title 

Index to 

Multicandidate 

Committees 

Federal Register 

Publication Date 

1/19/78 

Citation 

43 FR 275
• 

• 

REPORTS 

DUE 

CHARTS ON FILING DATES -- 1978 REPORTS 

The followmg charts provide information on the filing dates for quanerly. monthly and pre- and post-election repons required und

Federal Election Campaign Act. 

10-DAY PRE-ELECTION REPORT 30-DAY POST-ELECTION REPO

Filing Dat

Mailing Date (and Mailing 

Closing (If Sent by Closing for Reports F

Date of Date Registered or Filing Date by Registere

State Election** of Books Certified Mail) Date of Books Certified M

General Election 

All States November 7 October 23 October 26 October 28 November 27 December 

Primaries 

•Alabama September 5 August 21 August 24 August 26 September 25 October 5 

Runoff September 26 September 11 September 14 September 16 October 16 October 26 

• Alaska August 22 August 7 August 10 August 12 September 11 September 

Arizona September 12 August 28 August 31 September 2 October 2 October 12 

• Arkansas May 30 May 15 May 18 May 20 June 19 June 29 

Runoff June 13 May 29 June 1 June 3 July 3 July 13 

Californoa June 6 May 22 May 25 May 27 June 26 July 6 

"Colorado September 12 August 28 August 31 September 2 October 2 October 12 

Connectocut September 12 August 28 August 31 September 2 October 2 October 12 

*Delaware September 9 August 25 August 28 August 30 September 29 October 9 

District of September 12 August 28 August 31 September 2 October 2 October 12 

Columboa 

Floroda September 1 2 August 28 August 31 September 2 October 2 October 12 

Runoff October 10 September 25 September 28 September 30 October 30 November 

*Georgoa August 8 July 24 July 27 July 29 August 28 September 

Runoff August 29 August 14 August 17 August 19 September 18 September 

Guam September 2 August 18 August 21 August 23 September 22 October 2 

Hawaio October 7 September 22 September 25 September 27 October 27 November 

* Idaho August 8 July 24 July 27 July 29 August 28 September 

* Illinois March 21 March 6 March 9 March 11 Aprol10 April 20 

lndoana May 2 April 17 April 20 April 22 May 22 June 1 

' Iowa June 6 May 22 May 25 May 27 June 26 July 6 

• Kansas August 1 July 17 July 20 July 22 August 21 August 31 

'Kentucky May 23 May 8 May 11 May 13 June 12 June 22 

• Louosoana September 16 September 1 September 4 September 6 October 6 October 16 

'Mame June 13 May 29 June 1 June 3 July 3 July 13 

Maryland September 12 August 28 August 31 September 2 October 2 October 12 

• Massachusetts September 19 September 4 September 7 September 9 October 9 October 19 

'Mochogan August 8 July 24 July 27 July 29 August 28 September 

9 

conti
10-DAY PRE-ELECTION REPORT 30-DAY POST-ELECTION REPOR

Filing Date 

Mailing Date (and Mailing Da

Closing (If Sent by Closing for Reports Fil

Date of Date Registered or Filing Date by Registered o

State Election•• of Books Certified Mail) Date of Books Certified Mail

*Minnesota September 12 August 28 August 31 September 2 October 2 October 12 

• MiSSISSIPPI June 6 May 22 May 25 May 27 June 26 July 6 

Runoff June 27 June 12 June 15 June 17 July 17 July 2 7 

Missouri August 8 July 24 July 27 July 29 August 28 September 7 

' Montana June 6 May 22 May 25 May 27 June 26 July 6 

* Nebraska May 9 April 24 April 27 Apri l 29 May 29 June 8 

Nevada September 12 A ugust 28 August 31 September 2 October 2 October 12 

*New Hampsh~re September 12 August 28 August 31 September 2 October 2 October 12 

'New Jersey June 6 May 22 May 25 May 27 June 26 July 6 

'New Mexico June 6 May 22 May 25 May 27 June 26 July 6 

+New York September 12 August 28 August 31 September 2 October 2 October 12 

'North Carol ina May 2 April17 April 20 April 22 May 22 June 1 

Runoff May 30 May 15 May 18 May 20 June 19 June 29 

North Dakota September 5 August 21 August 24 August 26 September 25 October 5 

Ohio June 6 May 22 May 25 May 27 June 26 July 6 

'Oklahoma August 22 August 7 August 10 August 12 September 11 September 21 

Runoff September 19 September 4 September 7 September 9 October 9 October 19 

*Orego n May 23 May 8 May 11 May 13 June 12 June 22 

Pennsylvania May 16 May 1 May 4 May 6 June 5 June 15 

' Rhode Island September 12 August 28 August 31 September 2 October 2 October 12 

'South Carolina June 13 May 29 June 1 June 3 July 3 July 13 

Runoff June 27 June 12 June 15 June 17 July 17 July 27 

'South Dakota June 6 May 22 May 25 May 27 June 26 July 6 

' Tennessee August 3 July 19 July 22 July 24 August 23 September 2 

'Texas May 6 April 21 Apn l 24 April 26 May 26 June 5 

Runoff June 3 May 19 May 22 May 24 June 23 July 3 

Utah September 1 2 A ugust 28 A ugust 31 September 2 October 2 October 12 

Vermont September 12 A ugust 28 August 31 September 2 October 2 October 12 

'Virg1nia June 13 May 29 June 1 June 3 July 3 July 13 

Virgin Islands September 12 August 28 A ugust 31 September 2 October 2 October 12 

Washmgton September 19 September 4 September 7 September 9 October 9 October 19 

'West Virginia May 9 April 24 April 27 April 29 May 29 June 8 

Wisconsm September 12 August 28 August 31 September 2 October 2 October 12 

'Wyom1ng September 12 August 28 August 31 September 2 October 2 October 12 

'States hold1ng Senate elections. 

·'Caucus or Convention In States where a party holds a caucus or convent•on wh1ch has the authonty to select the party's nom1nee for 

general election . the convention or caucus 1S considered an election for which pre- and post-election reports are required. In those ca

the date of the convention or caucus counts as the date of the election. 

+Dates subject to change by State legislature. 

NOTE. Puerto Rico elects a Resident Commiss1oner every four years. No election for this office will be held m 1978. 

10 
• 

e 

• 

QUARTERLY REPORTS* 

Filing Date (and 

M ai ling Date for 

Reports Fi led by 

Registered or 

Quarter Close of Books Certified Mail) 

First March 3 1 April 10 

Second June 30 July 10 

Third September 30 Oct ober 10 

Fourth (Year-end) December 31 January 31, 1979 

' Quarterly Waiver: When the last day for filing any quarterly report occurs w ithin 10 days before or after an elect ion , the filing of such quarterly report is waived and 

superseded by the timely filing of the pre-election report. 

MONTHLY REPORTS** 

Filing Date (and 

Mailing Date for 

Reports Filed by 

Registered or 

M onth Period Covered Certified Mail) 

February 1/1 r 1/31 February 20 

March 2/1 -2/28 March 20 

April 3/1 - 3/31 April 20 

May 4/1 -4/30 May 20 

June 5/1 - 5/3 1 June 20 

July 6/1 -6/30 July 20 

August 7/1 - 7/31 August 20 

September 8/1 -8/31 September 20 

October 9 /1 -9/30 October 20 

Pre-Election 10/1 - 10/23 October 28 

Post-Election 10/24 - 11/27 December 7 

Year-End 11 /28 - 12/31 January 31, 1979 

• •For committees quallfyong for monthly reporting, see 

explanation in the Record, January 1978, p. 1. 

11 

SPECIAL ELECTION IN NEW YORK 

A special election was held on February 14 in New Yo

to fi ll the House of Representatives seats vacated by R

resentatives Edward Koch (18th Congressional District ) a

Herman Badillo (21st Congressional District). Al l politic

committees supporting candidates in these elections, eith

by making contributions to them or making expenditu

on t heir behalf, must file pre- and post-election repor

The 1 0-day pre-election report, covering al l receipts a

expenditures through January 30, was due February 

The 30-day post-election report must be f iled by March 

coveri ng al l transactions between January 3 1 and March 

1978. 

In addition, committees which supported candidates in 

nominat ing election (party convention) must file 1 0-d

pre- and 30-day post-election reports for that nominat

election. 

Mult icandidate commit tees already registered and filing 

a monthly basis need not file pre- and post-election repo

Their reports are due, inst ead, on the 20th day of ea

month. 

ClEARINGHOUSE 

ADV ISORY PANEL MEETS 

The Clearinghouse Advisory Panel met on January 10 

the Crystal City Marriott, just outside of Washington, D

The Panel reviewed past Clearinghouse projects and d

cussed current and future programs. Vice Chairman Aike

and Commissioner Staebler delivered the opening remar

Additionally, the Panel heard speakers from the Natio

Association of Counties, the University of South Carol

Social Research Laboratory and the Intergovernmen

Personnel Administration of the U.S. Civil Service Comm

sion . 
FEDERAL ELECTION COMMISS ION 

1325 K STREET, NW 

WASHINGTON, DC 20463 

OFFICIAL BUSINESS 

POSTAGE AND FEES PAID