JANUARY 31 REPORTING DATE

ALL CANDIDATES FOR FEDERAL OFFICE AND PO- FOURTH QUARTER OR ANNUAL REPORT
LITICAL COMMITTEES SUPPORTING THOSE CANDI-
DATES ARE REQUIRED TO FILE A JANUARY 31
REPORT OF RECEIPTS AND EXPENDITURES ON OR
BEFORE JAN. 31, 1976. BELOW ARE SUMMARIZED
THE MAJOR POINTS OF THE INTERIM GUIDELINE:
JANUARY 31 REPORT PUBLISHED IN THE FEDERAL
REGISTER (Dec. 17, 1975, p. 58617), ALONG WITH
OTHER PERTINENT INFORMATION.

In order to have one filing deadline in January 1976,
the Commission has determined that those candidates
or committees filing the 4th Quarter Report or the
Annual Report should file by Jan. 31.

The January 31 Report will cover all financial
activity:

* from the date of the close of books of the last

report filed through Dec. 31, 1975,
or

* from Jan. 1, 1975, through Dec. 31, 1975, if no

report was filed during the 1975 calendar year.

A report sent by registered or certified mail, post-
marked on or before Jan. 31, 1976, shall be considered
a timely filing.

FORMS

WHO REPORTS WHERE?

Candidates for President or Vice President

Committees Supporting Presidential or Vice

Presidential Candidates

* Committees Supporting any combination of
Presidential, Senate or House Candidates

* “Person,” other than political committees or
candidates, required to file under 2 U.S.C. Interim forms published by the Commission or
§434(e) oo. forms issued by the previous Supervisory Officers

SHOULD FILE WITH: Federal Election Commission should be used. Requests for forms should be directed

1325 K Street, N.W. to the Public Communications division of the FEC.
Washington, D.C. 20463

1D NUMBERS

see eee

Committees filing reports with the FEC have not
been assigned FEC ID numbers. The name under which
the committee is registered should appear on the
report or statement filed.

Committees filing reports with the Secretary of the
Senate or the Clerk of the House should use the ID
numbers assigned by those offices.

© Candidates for the U.S. Senate
¢ Committees Supporting only Senate Candidates
SHOULD FILE WITH: Office of Public Records
Secretary of the Senate
Room 623, 119 D St., N.E.
Washington, D.C. 20510
eee eee QUESTIONS?
Contact: Patricia Schering
Reports Examining
Federal Election Commission

* Candidates for the U.S. House of Representatives
* Committees Supporting only House Candidates
SHOULD FILE WITH: Office of Records and Regis-

tration (202) 382-3484

Clerk of the House of Repre-
sentatives Fran Voorde

Room 1036 Longworth House Public Communications
Office Bldg. Federal Election Commission

Washington, D.C. 20515 (202) 382-4733

FEC NOTES

Answers to Most Frequently Asked Questions New Registrations

Federal funds for Presidential primary candidates, . ,
national party nominating conventions, and the Presi- Public Records has received several new non-party
dential general election candidates are available from multi-candidate committee registrations:
the Treasury Department due to the check-off feature * CWA District 4 Political Action Committee (Affil-
on Federal Income Tax Forms. Safeguards against iated with Communications Workers of America)
illegal use of these funds include: * Crocker’s Individual Voiuntary Investment In

© Statutory requirement (26 U.S.C. §9007(a)) that Citizenship (CIVIC) (Affiliated with Crocker Na-

the Commission examine and audit qualified
campaign expenses of Presidential candidates or
parties after the election;

Statutory provision (26 U.S.C. §9007(b)) for re-
payment of funds determined by the Commission
to have been in excess of the entitlement or to
have been used for other than qualified expenses;
Statutory language (26 U.S.C. §9008(c) and (d))
limiting the amounts and uses of funds for na-
tional conventions.

tional Bank and Affiliates)
* Committee for Sensible Government (Affiliated
with Wheelabrator-Frye, Inc.)
© Committee for Quality Government - F (Affiliated
with CB&T Bancshares, Inc.)
* CWA District 5 Political Action Committee (Af-
filiated with Communications Workers of Amer-
ica)
Allegheny Political Action Committee (Affiliated
with Allegheny Airlines, Inc.)



Nos. 2-4.)

CURRENT ADVISORY OPINIONS LISTED

The following chart contains a listing and brief description of Advisory Opinions issued by the
Commission from early through mid-December. Advisory Opinion Requests are designated a number as they
are received by the Commission. Advisory Opinions are not necessarily approved in sequential order. Refer-
ence 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, Vol. 1,

AO 1975-36—PAYMENT OF ADMINISTRATIVE COSTS.
Payment of administrative costs incurred by a corporation
on behalf of a political action committee operating as a
separate segregated fund is not prohibited. (12/18/75-
58802)

AO 1975-50—CORPORATION DEBTS. Corporations may
not settle/forgive debts incurred by candidates except
under extenuating circumstances. (12/16/75-58392)

AO 1975-53—NOMINATION BY PETITION EFFORT. Ap-
plication of limitations on contributions and expenditures
to nomination by a petition effort. (12/16/75-58392)

AO 1975-54—CAUCUS/CONVENTION PRIOR TO PRI-
MARY ELECTION. A caucus or convention held prior to a
primary election but which does not select a nominee is
not a separate election and will be considered part of the
primary process. (12/18/75-58802)

AO 1975-63—PAYMENT OF HONORARIUM BY POLITI-
CAL COMMITTEE. An honorarium paid by a political com-
mittee to a Federal officeholder/candidate is not a contri-
bution when the audience addressed is not part of the
electorate with respect to which he/she is a candidate
(12/16/75-58397)

AO 1975-65—CONTRIBUTIONS BY FAMILY MEMBERS.
A member of a candidate’s immediate family may
contribute more than $1,000 per election, provided the
member does not exceed the $25,000 aggregate ceiling on
all contributions in a calendar year by an individual, or the
limitations on expenditures/contributions from the candi-

date’s personal funds and those of his immediate family.
(12/16/75-58393)

AO 1975-75—CONTRIBUTIONS BY NON-PROFIT ORGA-
NIZATION. A non-profit organization whose exclusive
function is the support of candidates for political office,
which is incorporated for liability purposes only, may
make contributions to and independent expenditures on
behalf of Federal candidates under certain conditions.
(12/16/75-58398)

AO 1975-82—SOLICITATION TO RETIRE 1974 CAM-
PAIGN DEBT. Except for the limitations on the candi-
date’s use of his own funds and those of his immediate
family, the contribution and expenditure limitations do
not apply to fundraising activities in 1976 which are solely
for the purpose of retiring a 1974 campaign debt.
(12/11/75-57757)

AO 1975-85—CLARIFIES “HONORARIUM.” Sets forth
guidelines as to when an “award” may not be considered
an “honorarium.” (12/16/75-58394)

AO 1975-88—EXCESS FUNDS SOLICITED TO RETIRE
1974 DEBT. Allows excess funds solicited to retire the
1974 campaign debt of a Federal officeholder to be used
for any lawful purpose. (12/11/75-57757)

AQ 1975-93—1974 HONORARIUM. Acceptance of a
$2,000 honorarium for a speech given in 1974 which was
not actually received until 1975, is not in violation of 18
U.S.C. §616. (12/16/75-58394)

“2. based on a selection process with established
criteria, and which process does not require the
Federal officer or employee to apply for or compete for
the award;

“3. gratuitously under circumstances which make
clear that the Federal officer or employee is not
required to make an appearance or speech, or write an
article as a condition for receiving the award; and

“4. under circumstances where there is no signifi-
cant evidence indicating that the award is made in lieu
of an honorarium or contribution.”

The Commission concluded that the “Joseph Prize
for Human Rights,” is a monetary award which does
not constitute an honorarium. Thus, the award may be
accepted by Senator Humphrey for his personal use, or
donated by the Senator to a charity, without regard to
the limitations on honoraria.

AO 1975-88. Funds received to retire 1974 campaign
debts may be returned to the original donors on a pro-
rated basis or on a last-received, first-revurned basis.
The funds may also be disposed of in accordance with
the provisions of 2 U.S.C. §439a. The disclosure re-
quirements apply to any disposition of the excess
funds.

In addition, these funds may be transferred to the
1976 campaign if authorized by the original donors and
attributed to the donor’s contribution limitations.

UPDATE ON PRESIDENTIAL PRIMARY MATCHING
FUNDS

Formal eligibility to receive matching payments was
established for three Presidential candidates—Lloyd
Bentsen, President Ford, and Terry Sanford—by the
Commission on Dec. 18, 1975. On Dec. 23, formal eligi-
bility was established for an additional eight candi-
dates.

The initial entitlement of eligible candidates for
matching payments was certified to the Secretary of
the Treasury in the following amounts:

Birch Bayh $100,000.00
Lloyd Bentsen 492,029.84
James Carter 100,000.00
Gerald Ford 374,422.10
Fred Harris 100,000.00
Henry Jackson 100,000.00
Ronald Reagan 100,000.00
Terry Sanford 214,050.27
Sargent Shriver 100,000.00
Morris Udall 100,000.00
George Wallace 100,000.00

Total Payments Certified $1,880,502.21
The Commission will certify to the Secretary of the
Treasury additional amounts to which eligible candi-
dates are entitled as contribution records are submitted
by the candidates and reviewed by FEC staff.



)

* Coors Employees’ Political Action Committee (No
affiliation listed)

* Concerned Citizens Political Action Committee
(Affiliated with Metropolitan Contract Services,
Inc.)

* Marcor, Inc. Political Action Committee (Affili-
ated with Marcor, Inc.)

* Montgomery Ward & Co., Inc. (Affiliated with
Montgomery Ward & Co., Inc.)

Public Seminars

The FEC has scheduled Regional Seminars to be
held starting Jan. 26. The one-day programs will
feature basic information on Title 2 and Title 18,
Advisory Opinions of significance, instructions from
AID regarding the new bookkeeping manual, and an
assessment of the strategic implications of the law on
a political campaign. The Washington, D.C. seminar
will deal especially with multi-candidate committees
and will concentrate on setting up PAC’s and adminis-
tering segregated funds. Commission members and
staff will be available to answer questions. A listing of
the dates and cities where the seminars will be held
follows:

Jan. 26-27 House of Representatives, Washington,

D.C.

Senate, Washington, D.C.

Washington, D.C. (focus on multi-
candidate committees)

Feb. 4 Baltimore, MD

Feb. 7 Richmond, VA

dan. 28
Feb. 2

Feb. 13 Chicago, IL

Feb. 14 = Cincinnati, OH
Feb. 17 Philadelphia, PA
Feb. 20 Salt Lake City, UT
Feb. 21 San Francisco, CA

Feb. 23 Los Angeles, CA

Feb. 25 Dallas, TX

Mar. 1 St. Louis, MO

Mar. 2 Detroit, MI

Mar. 6 Memphis, TN

Mar. 8 Atlanta, GA

Mar, 12 New York, NY

Mar. 13 Boston, MA
Anyone wishing further information should contact the
Special Projects Director in the Public Communica-
tions division. (202/382-4733)

Reader Response

The Record is receiving comments in response to
the coupon included in the Vo/. 1, No. 3-issue. Reader
response is helpful in formulating future issues and in
correcting errors in the mailing labels. Please continue
to send your coupons. Thank you.

MATERIALS AVAILABLE

Federal Register Reprints

FEC Record, Vol. 1, Nos. 1-4

FEC Record, ‘ial Year-End Edition
General Information Folder

Index of Reports and Statements

Cost of Election Administration

Survey of Absentee Registration and Voting
Chart of Reporting Dates

November Issue of Election Law Survey
Volunteer’s Guide

Fundraiser’s Guide

Revised Edition of the Federal Election
Campaign Act (1st Ed., April 1975)

no

Pe ey

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
tor Information Services - Herb Koster; Editor - Carolyn L. Tillotson. Press and Public information Phone No. -
(202) 382-4733; The RECORD Phone No. - (202) 382-5162. New Toll Free Number: 800-424-9530 or 800-424-9531.

FEDERAL ELECTION COMMISSION

1325 K STREET, NW
WASHINGTON, DC 20463

OFFICIAL BUSINESS

GPO 806-989

4

US.MAIL

POSTAGE AND FEES PAID —



THE FEDERAL ELECTION

COMMISSION

eCORD

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

Volume 2, No. 1

1976

COMMISSION SENDS REGULATIONS TO THE CONGRESS

PRESIDENTIAL PRIMARY MATCHING FUNDS

The proposed regulation on Presidential Primary
Matching Funds was approved by the Commission on
Dec. 18 for submission to the Congress. The regulation
reflects changes suggested in testimony at the FEC
hearings and by written comments.

Presidential candidates may receive matching pay-
ments for the nominating process in amounts not in
excess of 50% of the expenditure limitation ($10
million plus a cost of living adjustment). To be eligible,
a candidate must raise individual contributions of $250
or less aggregating $5,000 in each of 20 States.

Highlights of the regulation follow:

Matchable Campaign Contribution

¢ “Matchable Campaign Contribution” means a gift
of money [other than a loan, advance, subscription,
deposit or anything of value] made by a written
instrument identifying the individual making the
contribution by full name, and mailing address.

1) Gifts of money will be considered matchable
campaign contributions only to the extent of the
first $250 contributed by an individual.

2) The full amount shall be actually received by
the candidate or his or her committee and deposited
in a designated campaign depository.

3) The amount shall be received by the candidate
on or after the first day of the calendar year imme-
diately preceding the calendar year of the Presiden-
tial election but no later than the last day of the
matching payment period.

* “Written instrument” means (a) A check, money
order, or any other negotiable instrument payable on
demand, which contains the full name and signature of
the contributor, and the amount and date of the contri-
bution, and which contains the mailing address of the

EDITOR’S CORRECTION

Please note on Page 5 (Vol. 1, No. 4) under SUN EPA,
Item 2, copy should read: .

2, Sun may not make “any effort, either orally or
in writing, to direct contributions by participants to
SUN EPA to any candidate, group of candidates,
political party, or other persons.”’

contributor; or (b) A written record of a cash gift (which
must not exceed $100) signed in ink by the contributor,
and including the contributor’s full name, mailing
address, and the amount and date of the gift.

Checks written on partnership accounts, or
accounts of unincorporated associations or busi-
nesses are matchable if:

1) accompanied by documentation which speci-
fies that the contribution is made by a specific indi-
vidual or individuals;

2) the documentation is signed by the individual
or individuals; and

3) the aggregate amount of the contribution
drawn on a partnership, or unincorporated associa-
tion or business account, does not exceed $1,000 to
any one Federal candidate for an election.
¢ In no case will a contribution by a political com-

mittee or other organization be matchable.

* Contributions eligible for matching are deter-
mined without regard to fundraising costs, except that
a contribution made in exchange for an item with
significant intrinsic and enduring value is not
matchable.

Candidate Agreements

¢ ...The candidate’s submission to the Commis-
sion to become eligible for matching funds is to be
made in the following wa)

1) For each State in which the candidate certifies
he or she has met the “threshold” requirement, the
candidate must submit an a/phabetical list of con-
tributors, showing full name, residential address,
date of contribution, the dollar amount of each
contribution, the dollar amount of each contribu-
tion submitted for matching purposes, and the total
amount of all matchable contributions.

2) The candidate must submit a photocopy of
each check or other written instrument for each
contribution which he submits to receive matching
funds. The photocopies must be segregated by date
of deposit, and be accompanied by copies of the
relevant deposit slip and the relevant bank state-
ment.

Matching Payments in Excess of Threshold

« After a preliminary determination has been made
that the candidate has successfully satisfied the

a —aEEEEEEeEe—————eEEE=S~*~



threshold requirement, the Commission will notify the
candidate and request the submission of-the necessary
documentation for all contributions that the candidate
wishes to be matched. This submission need not be
segregated by State.

Initial Certification

¢ Within 10 calendar days after the Commission
formally determines that a candidate has established
eligibility, the Commission will certify to the Secretary
of the Treasury for payment of the amount to which
such candidate is entitled.

Additional Certifications

« Requests for additional certifications may. be
submitted not more often than twice a month, on the
first and third Mondays, unless the Commission at its
discretion permits additional requests.

* Within 15 calendar days, the Commission will
certify to the Secretary of the Treasury the additional
amount to which a candidate is eligible.

Certification Review

¢ If the Commission intends to certify to the
Treasury for payment of an amount which Is less than
the amount requested by the candidate, the Commis-
sion shall notify the candidate in writing:
1) That tess than full certification is being con-
sidered.
2) The amount of the contribution and the name
of the contributor which the Commission considers

not matchable, and the reasons why it will not be
matched.

3) The Commission will certify to the Treasury
for payment the amount of matchable contributions
that are not in dispute.

4) That the candidate will be accorded an oppor-
tunity to supply the Commission with additional
documentation or other explanation so as to make
the contribution matchable.
© If the candidate chooses to supply the Commis-

sion with the requested information, and the
Commission determines that the disputed contribution
is still unmatchable, the candidate will be notified in
writing of the action and the reasons therefor, and give
the candidate an opportunity for a hearing within seven
days from the receipt of this second notification.

POINT OF ENTRY, OFFICE ACCOUNTS, DISCLOSURE

On Dec. 2, 3, and 4, the FEC transmitted to the
House and the Senate:

1. Its revised proposed regulations on the initial
place of filing of Federal campaign tinance reports
(referred to as the “Point of Entry” regulation);

2. Its revised proposed regulation on Congressional
office accounts;

3. The proposed disclosure regulation (highlighted
in Vol. 1, No. 4 of the RECORD).

The law provides that the Commission may not pro-
mulgate any regulation disapproved by the Congress
within 30 legislative days after transmittal to Congress.

oe

SYNOPSES OF RECENT ADVISORY OPINIONS

These Advisory Opinion synopses are offered for
informative purposes only. Any interested party Is ad-
vised to read the complete text of the Opinion pub-
lished in the Federal Register, or to write to the Com-
mission for a copy.

AO 1975-50. The Commission responded to several
questions posed by an unsuccessful candidate for
Congress who ran in a 1974 special, court-ordered elec-
tion held on Jan. 7, 1975. Due to the peculiar circum-
stances of the matter, the Commission ruled that the
1974 Amendments to the Federal Election Campaign
Act were inapplicable to contributions and expendi-
tures received or made by the candidate.

The opinion also concluded that, generally, a cor-
poration may not forgive prior debts or settle debts for
less than the amount owed by the candidate or com-
mittee. In certain extenuating circumstances (which
will be subject to Commission scrutiny on a case-by-
case basis), settlement or forgiveness of a corporate
debt may not be considered a corporate contribution, if
a showing is made that the debt was incurred in a com-
mercially reasonable manner. This showing must
include at least the following:

1. that the extension of credit was made in a
manner similar to extensions of credit to a
non-political debtor or in accordance with regulations
prescribed by other regulatory agencies;

2. that the candidate or political committee has
undertaken an exhaustive effort to satisfy the out-
standing debt; and

3, the corporate creditor has pursued its remedies
in a manner similar in intensity to that employed in
pursuit of a non-political debtor.

AO 1975-53. The contribution and expenditure limi-
tatlons apply to a person who seeks nomination
through a petition effort. The Commission believes the
“primary” period continues through the last day of
qualifying for a position on the general election ballot
or the date of the last major party primary election,
whichever is later. Consequently, expenditures related
to a nomination by a petition effort are considered
“primary” expenditures, and may be made in the same
amounts and in the same manner as funds expended
for running in a primary election.

Surplus funds remaining from a primary or petition
campaign may be used in the general election. Any
contributions received after the primary period but
earmarked for the primary will be treated as contribu-
tions for the primary election as long as there still exist
primary campaign debts. If no primary campaign debts
exist, such contributions will be treated as contribu-
tions for the general election.

AO 1975-63. The Commission concluded that as
provided in AO 1975-20, an honorarium paid by a
political committee will be treated as a contribution in
circumstances where: “1) the individual is a candidate
for Federal office; and 2) the audience for the speech or
appearance is comprised in substantial part of individ-
uals from the electorate with respect to which the indi-
vidual is a Federal candidate.”



Thus, when a Federal officer addresses an audience
which is not part of the electorate with respect to which
he/she is a candidate, neither the honorarium nor the
reimbursement for actual travel expenses for the
speaker and the speaker’s spouse constitutes a
contribution. When the honorarium is made by a
reporting political committee, the political committee
must disclose the payment of the honorarium and
travel expenses in its report.

The Commission emphasized that all situations
where a political committee pays an honorarium
and/or actual travel expenses to or on behalf of a
Federal candidate are subject to examination or audit
for any implications that it was in fact paid for the
purpose of influencing the recipient’s nomination or
election to Federal office.

AO 1975-75. The Legislative Interest Committee of
Hlinois Dentists is a non-profit organization, incor-
porated for liability purposes only, whose exclusive
function in the past was to support candidates for the
Illinois legislature. In order to contribute to candidates,
LICID must follow one of two courses of action:

1. If LICID intends to contribute from one general
fund to Federal and non-Federal candidates alike, it
must

a. file as a political committee;

b. disclose the sources of all monies in its gen-
eral account;

c. return all monies in its account which would
constitute illegal contributions under Federal
law;

d. report all future receipts and disbursements,
Federal or non-Federal, from the general
account.

2. LICID may otherwise establish a separate Fed-
eral campaign committee. The separate committee

a. may receive only contributions designated by
the donor for that committee or earmarked for
Federal elections;

b. may not receive contributions in violation of
18 U.S.C. §§608(b), 610, 611, 613, 614, 615;

c. may receive transfers only from another Fed-
eral campaign committee or political com-
mittee;

d. must file as a political committee with the
Commission;

e. must pay the expenses of establishing and
administering the committee and of soliciting
contributions to the committee only from
monies properly in this committee.

AO 1975-82. The Commission modified its previous
position on pre-1975 campaign debts by allowing
Congressman Richmond to solicit contributions in
1976 to retire 1974 campaign debts. Contributions and
expenditures made for this purpose only will not be
subject to the contribution and expenditure limitations,
but will be subject to the limitations on expenditures
from a candidate’s personal funds and those of his
immediate family.

Full disclosure is required of contributions and ex-
penditures made to retire the 1974 debt. Reporting of
1974 debts must be separate from any 1976 campaign
effort and no transfers between the 1974 and 1976
campaign accounts are allowed.

Excess funds remaining after repayment of all debts
may be returned to the original donor, used in a manner
consistent with 2 U.S.C. §439a or transferred to the
1976 campaign if authorized by the original donor and
attributed to the donor's contribution limitation.

AO 1975-85. Senator Humphrey asked the Commis-
sion whether a monetary award (the “Joseph Prize for
Human Rights”) given to a United States Senator in
recognition of public service or special achievement is
to be treated as an honorarium.

The opinion states that the word “honorarium”
should be read narrowly and not be interpreted as
including an award in certain circumstances. The Com-
mission went on to establish general, but not exhaus-
tive, criteria for distinguishing a bona fide award from
an honorarium. To be considered an award, the gift of
money must be made to an officer or employee of the
Federal Government:

“4. primarily in recognition of religious, charitable,
scientific, educational, artistic, literary, or civil
achievement;

DEAR READER: PLEASE CLIP THIS COUPON AND RETURN IT TO US COMPLETED
WITH YOUR COMMENTS. THANK YOU.

* Is publication of FEC activities (Proposed Regulations, Interim Guidelines, Advisory Opinion Requests, Advisory Opinions,
Hearings, etc.) in the Federal Register a helpful and accessible method of disbursing this information to you?

* Would publication of FEC acti

in the Federal Register once a week on the same day every week be preferable?

* Would a weekly (monthly) digest of FEC activities published and mailed by the FEC be preferable?
© Do you have any alternative suggestions for methods of distributing information on the activities of the FEC?