•

April 1986

FEDERAL ELECTION COMMISSION

999 E Street NW Washington DC 20463 Volume12, Numb

II MINI CONFERENCE FOR

CANDIDATES

LEGISLATION

9 1986 Legislative Recommendations

conti

1986 Pa

Spendin

Limits

$126,672

43,620

100,849

74,721

851,680

103,248

105,473

43,620

385,164

188,35

YAP

[Thousands)

2,904

351

2,312

1,713

19,525

2,367

2,418

465

8,830

4,318

6 ADVISORY OPINIONS

COURT CASES

8 FEC v. Wolfson

8 FEC v. Aids

9 New Litigation

DfFORMATlON

Party Coordinated Expenditure

Limits

2 Easy Access to FEC

TABLE OF CONTENTS

Alabama

Alaska*

Arizona

Arkansas

California

Colorado

Connecticut

Delaware*

Florida

Georgia

REPORTS

4 Reports Due in April

State

Chart on Senate Limits

The Com mission has compiled the follo

chart for 1986 limits on party spending for Se

candidates in the general election. The Se

limit also applies to candidates for the Hous

those states which have a single Representa

In the chart, an asterisk (*) indicates those s

having only one Representative. VAP figure

the chart are in thousands.

How to Calculate Senate Limit

The Senate formula is the state voting age

population (VAP) x $.02, increased according to

the change in the consumer price index; or

$20,000 (increased by the change in the CPI),

whichever is greater. (See chart below.)

PARTY COORDINATED EXPENDITURE

LIMITS -- 1986

Party committees may make limited, special

expenditures on behalf of their candidates in the

1986 general elections. 2 U.S.C. S441a(d); 11 CFR

110.7. These special expenditures count neither as

contributions to the candidate nor as expenditures

by the candidate or the candidate's authorized

committees. The party committee may coordinate

the expenditures with the candidate's campaign,

but the party committee--not the candidate--

must report them, using Schedule F of FEC Form

3X.

In 1986, national party com mittees have separate spending limits for Senate and House candidates in the general election. State party committees are SUbject to separate spending limits

for Senate and House general election candidates

in their respective states. Within a state, all

expenditures made on behalf of one candidate by

the state party committee or any subordinate

party committee (e.g., county, district, local) are

subject to one spending limit.

The formulas for the party spending limits in

1986 are based on state voting age population

estimates (as of July 1, 1985) from the Department of Commerce, and the increase in the

consumer price index (CPI) certified by the Secretary of Labor. They are calculated as follows:

How to Calculate House Limit

The House limit depends on the number of

districts in the state. For House candidates in

states with more than one district (and candidates

for Delegate from the District of Columbia,

Guam and the Virgin Islands or for Resident

Commissioner from Puerto Rico), the limit is

$10,000 (increased by the change in the CPI) or

$21,810 during 1986. For House candidates in

states entitled to only one representative, the

limit is the same as that for Senate candidates.

(See above.l
2

FEDERAL ELECTION COMrvllSSION \blume12, Numoo

EASY ACCESS TO FEC

The FEC encourages the public to visit t

agency's new headquarters and take advantage 

the Commission's information services. Locat

at 999 E Street, N.W., the agency is within tw

blocks of both metrorail and metrobus lines. (S

the map on the next page.)

Depending on your needs and interests, one 

more FEC offices can offer you assistance a

information, as discussed below. The FEC is op

from 9 to 5, daily. These offices may also 

contacted by calling the FEC's toll-free numbe

800/424-9530, or by calling the local numbe

listed below.

If you represent a committee and want to fi

your report in person, come to the Mail Roo

located on the street floor.

If you work for a committee or a candida

(e.g., as a treasurer, a volunteer or an attorne

and want assistance in complying with the law 

wish to pick up free written materials explaini

the law's requirements, stop by the Informati

Services Division on the 2nd floor. A public a

fairs specialist will meet with you and answ

your questions. The specialists may be contact

by phone at 376-3120.

If you work with a com mittee and ha

specific questions about filling out your repo

you can speak with the reports analyst who r

views your committee's report. Come to the R

ports Analysis Division on the 7th floor or ca

376-2480.

If you are interested in gathering data 

specific candidates or committees, you will fin

the information in the Public Records Offic

Located on the street floor, the Public Recor

Office provides information on the campaign f

nance activities of political committees and ca

didates involved in federal elections. The office 

a library facility with ample work space and 

knowledgeable staff to help locate document

FEC documents available for review and copyin

includes

o Campaign finance reports (I972-present);

o Statistical summaries of campaign finance r

ports;

o Computer indexes on campaign flnance info

mation;

o Advisory opinion requests and advisory opinion

o Completed compliance cases;

o Audit reports;

o Press releases; and

o Other Commission documents (e.g., agendas o

FEC meetings).

The office may also be contacted locally b

calling 376-3140.

If you are a media representative-print 

broadcast-you will want to meet with our pre

officers in the Press Office, also located on th

street floor. They will answer your questions an

help provide data on specific candidates and com

April 1986

I981Party

VAP Spending

State (Thousands) Limits

Hawaii 764 $ 43,620.00

Idaho 681 43,620.00

Illinois 8,436 367,978.32

Indiana 3,993 174,174.66

Iowa 2, III 92,081.82

Kansas 1,785 77,861.70

Kentucky 2,703 117,904.86

Louisiana 3,126 136,356.12

Maine 860 43,620.00

Maryland 3,295 143,727.90

Massachusetts 4,458 194,457.96

Michigan 6,605 288,llO.10

Minnesota 3,054 133,215.48

Mississippi 1,824 79,562.88

Missouri 3,702 161,481.24

Montana 592 43,620.00

Nebraska 1,158 50,511.96

Nevada 716 43,620.00

New Hampshire 745 43,620.00

New Jersey 5,700 248,634.00

New Mexico 1,002 43,707.24

New York 13,414 585, ll8 .68

North Carolina 4,666 203,530.92

North Dakota * 488 43,620.00

Ohio 7,871 343,333.02

Oklahoma 2,377 103,684.74

Oregon 1,976 86,193.12

Pennsylvania 8,976 391,533.12

Rhode Island 743 43,620.00

South Carolina 2,425 105,778.50

South Dakota> 502 43,620.00

Tennessee 3,531 154,022.22

Texas 11,572 504,770.64

Utah 1,031 44,972.22

Vermont* 395 43,620.00

Virginia 4,262 185,908.44

Washington 3,229 140,848.98

West Virginia 1,420 61,940.40

Wisconsin 3,491 152,277.42

Wyoming* 349 43,620.00

Delegate/Resident Commissioner Candidates

America Samoa 19 $ 21,810.00

District of

Columbia 494 21,810.00

Guam 72 21,810.00

Puerto Rico 2,034 21,810.00

Virgin Islands 62 21,810.00
FEDERAL ELECTION COMMISSION

•

April 1986

mittees, The Press Office may be contacted by

phone at 376-3155•

If you are interested in seeking information

through the Freedom of Information Act, address

your request to the Press Office.

If you want to do research related to the

election law or campaign finance reform, you may

wish to use the Library located on the 8th floor. It

houses a collection which includes basic legal

research tools and materials dealing with political

FECrs NEW LOCATION

• Metrorall

• Mstrobus

3

Volume 12, Num

campaign finance, corporate and labor pol

activity and campaign finance reform. Rese

ers may call the Library at 376-5312.

If your interest lies in election admin

tion, the National Clearinghouse on Election 

ministration can answer your questions and 

vide current research findings. The offica 

cated on the 7th floor. The Clearinghouse 

also be contacted by calling 376-5670.

Constitution Avenue
April 1986 FEDERAL ELECTION COMMISSION VbIume 12, Numoo

APRIL REPORTING SCHEDULE

The following chart and paragraphs explain the reporting schedule for the various categories of

filers.

Report

Type of Filer

Congressional Candidate

Committees: 1986

Congressional Candidate

Committees: Other Years

Presidential Candidate

Committees: Monthly Filers.!.!

Presidential Candidate

Committees: Quarterly Filers

PAC/Party Committees:

Monthly Filers!/

PAC/Party Committees:

Quarterly Filers

Connected Organizations:

Communications.!!

Quarterly

April 15

x

x

x

x

Pre-Primary Monthly

April 20

x

x

x

xl.!

Semiannual

July 31

x

YAH Presidential committees are required to file on either a monthly or a quarterly basis

during 1986. 11 CFR 104.Mb)(2).

YAH corporate and labor PACs, nonconnected committees and partv committees are

required to file on either a monthly or a quarterly basis in 1986.

YRequired only if the committee makes contributions or expenditures on hehalf of

candidates in the primary which have not been previously disclosed.

YReport required if aggregate costs for partisan, internal commWlications for all 19RR

primaries have exceeded $2,000.

4
5

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. 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 Volume 12, Num

Filing with State Governments

o The principal campaign committees of 

gressional candidates must file a copy of e

report and statement with the Secretar

State or the appropriate elections officia

the state in which the candidate seeks fe

office. 11 CFR 108.3.

o PACs and party commmittees making cont

tions or expenditures in connection with H

and Senate races file in the state in which 

candidate seeks election. The law requir

copy only of that portion of the report a

cable to the candidatels) being supported. C

mittees supporting Presidential candidates 

file in the statels) in which the Preside

committee and donor committee have 

respective headquarters.

HOW TO OBTAIN MORE INFORMATION

During 1985, reporting forms and addit

information will be sent to registered com

tees. Questions and requests for additional f

should be addressed to the Information Ser

Division, Federal Election Commission, 99

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

202/376-3120 or toll free 800/424-9530.

a The principal campaign committees of Se

candidates and committees supporting or 

posing only Senate candidates file with 

Secretary of the Senate, Senate Public Rec

Hart Senate Office Building, Room 232, 

Washington, D.C. 20510. 11 CPR 104.4(c)(2

105.2.

o All other committees, including the prin

campaign committees of Presidential ca

dates, file with the Federal Election C

mission, 999 E Street, N.W., Washington, 

20463. 11 CFR 105.3 and 105.4.

April 1986

WHERE REPORTS ARE FILED

Committees must file all reports and statements simultaneously with the appropriate federal

and state officials. 11 CF R 108.5.

Pre-Primary Report

The report is due 12 days before the primary

election and must be complete as of the 20th day

before the election. If sent by registered or

certified mail, the report must be postmarked no

later than the 15th day before the election.

Monthly Report

The monthly report must be filed by April 20.

It should cover all activity from March 1 (or from

the closing date of the last report filed in 1986)

through March 31.

Filing with the Federal Govemment

o The principal campaign committees of House

candidates and committees supporting or opposing only House candidates file with the

Clerk of the House, Office of Records and

Registration, 1036 Longworth House Office

Building, Washington, D.C. 20515. 11 CFR

104.4(c)(3) and 105.1.

Change in Filing Frequency

PACs and party committees which plan to

change their reporting schedule (e.g., from quarterly to monthly) must notify the Commission of

their intention. The committee may notify the

Commission by submitting a letter with the next

report due under its current reporting schedule. A

committee may not change its filing frequency

more than once a year. 11 CFR 104.5(c). The

FEC requests that Presidential committees also

inform the Commission in writing if they decide

to change their reporting schedule.

Semiannual Report

The semiannual report is not filed until July

3L It covers all activity from January 1 through

June 30.

Quarterly Report

Due by April 15, the report should cover all

activity from January 1 (or from the closing date

of the last report filed in 1986) through March 31.
April 1986 FEDERAL ELECTIOI\J COMMISSION

ALTERNATE DISPOSmON OF ADVISORY

OPINION REQUEST

AOR 1986-3: Committee's Reporting of Stock

Contl'ibution Sold on the Open

Market

The requester withdrew the request in a letter of

February 14, 1986.

ADVISORY OPINIONS: SUMMARIES

An Advisory Opinion (AO) issued by the Commission provides guidance with regard to the

specific situation described in the AOR. Any

qualified person who has requested an AO and

acts in accordance with the opinion will not be

subject to any sanctions under the Act. Other

persons may rely on the opinion if they are

involved in a specific activity which is indistinguishable in all material aspects from the activity

discussed in the AO. Those seeking guidance for

their own activity, however, should consult the

full text of an AO and not rely only on the

sum mary given here.

AO 1986-1: Corporate Vendor's Offer to Provide

Free Tickets to Committee

The Committee to Re-Elect Congressman Ron

Dellums (the Committee) had reserved the Warner

Theater in Washington, D.C. (the Theater) for a

concert fundraiser that the Committee planned to

hold in March 1986. Subsequently, however, the

Thea tel' decided it would be financially beneficial

to book a musical production for a block of time

that included the date of the Committee's fundraiser. To mitigate any harm the cancelation

might cause the Committee, the Theater may

offer the Committee 100 free tickets to a performance of the musical production. This settlement offer would not result in a prohibited corporate contribution from the Theater to the Committee, provided:

o The offer was commercially reasonable; and

o The offer was made in the ordinary course of

business. See AO 1983-6.

To determine whether the Theater's proposed

settlement offer was commercially reasonable,

the Commission would consider: 1) whether the

Committee attempted to find, or was offered,

another comparable facility for the fundraiser;

and 2) whether the Theater's offer was reasonably

related to total funds the Com mittee might have

lost as a result of canceling the fundraiser, Similarly, in determining whether the proposed offer

was transacted in the ordinary Course of business,

6

\k:>lume 12, Numta

the Commission would consider: 1) whether t

Theater had an established policy of making sim

lar offers to other clients (political and nonpoli

cal) and 2) whether the Theater regularly ma

such offers to settle disputes with customers.

Reporting Requirements

Assuming the Theater's settlement off

meets the standards of being com mercially re

sonable and made in the ordinary course of bu

ness, the Com mittee should report the receipt 

the tickets as a memo entry on Schedule A 

FEC Form 3. The memo entry should brief

describe the reason the Committee received t

tickets. (Date issued: February 21, 1986; Leng

3 pages)

AO 1986-2: Candidate's Door-to-Door Sales

Campaign

To help finance Gary Robbins' campaign for 

Iowa House Seat, Mr. Robbins and his wife m

sell dry beans and popcorn "door-to-door." Sin

the purpose of the sales is to solicit funds for M

Robbins' campaign and to advocate his candidac

proceeds of the sales are contributions and co

incurred for the sales program are expenditure

Mr. Robbins' campaign com mittee is responsib

for the reporting of these transactions.

As campaign contributions, the sales pr

ceeds are subject to the election law's moneta

limits and prohibitions. 2 U.S.C. §§441a, b, e, 

and gj 11 CFR IOO.7(a){2). Depending on t

amount of an individual's purchase, the law's r

quirements for itemized recordkeeping and r

porting may apply. 2 U.S.C. §§432(b)-(c); 11 CF

Parts 102 and 104.

If Mr. Robbins pays the expenses (e.g., f

supplies) from personal funds, they must be r

ported as both in-kind contributions to, and e

penditures by, his campaign. II CFR 104.13(a)(

Alternatively, the personal funds may be co

sidered (and reported as) candidate loans.

The Com mission distinguished its decision 

this opinion from its decision in several previo

opinions concerning candidate activities. In tho

opinions, the activities did not result in t

making of campaign contributions or expenditur

because they were entirely separate from t

candidates' campaigns. See AOs 1979-72 a

1985-32. (Date issued: February 21, 1986; Lengt

3 pages)

AO 1986-4: Corporation's Program to Encourag

Employee Contl'ibutions

If Armstrong World Industries, Inc. (Armstron

inaugurates a program designed to encourage co

tributions from its administrative and executi

personnel to federal candidates and political com

mittees, Armstrong must establish and regist
FEDERAL ELECTION COMMISSION

•

April 1986

with the FEC a separate segregated fund (the

fund). As required by FEC Regulations, the fund

would have to file periodic reports of its receipts

and disbursements for federal elections, including

any earmarked contributions from its employees

which the fund might forward to federal candidates and political committees.

If the fund exercises any control Over an

earmarked contribution, the fund must:

o Report the transaction as a contribution from

both the employee and the fund; and

o Comply with the solicitation requirements for

such contributions.

Moreover, the earmarked contribution would be

subject to the monetary limits for both the employee and the fund. 2 U.S.C. SS441a(a)(1) and (2)

and S441b(b)(3)(A); 11 CFR 104.3(b), IIO.6(d) and

114.5(a)(1)-(2).

Proposed Contribution Program

As originally proposed, Armstrong's plan

represents a corporate endeavor to support candidates and solicit and direct contributions to candidates. For example, Armstrong's Washington office was to distribute information concerning

Congressional races and recommend contribution

recipients. Armstrong would then actively persuade its executives to participate in the program, would seek contribution pledges from them

and would monitor their participation in the program.

In conducting the program, Armstrong

planned to act sometimes as a conduit for employees' earmarked contributions. In response to a

candidate's fundraiser, the program adminstrator

would collect employees' contribution checks

(made payable to the candidate's campaign committee) and transmit the checks in one bundle to

the candidate.

Those employees Armstrong recruited as volunteers to assist in the program would provide

support services but would not direct the program.

Sep8r8te Segregated Pund Required

Armstrong must establish a separate segregated fund to avoid violating the election law's

ban on corporate expenditures and contributions

in connection with federal elections. See 2 U.S.C.

5441b. Armstrong's contributions program would

not qualify as an exempt nonpartisan activity

designed to encourage employees' participation in

the political process (11 CFR 114.4); nor would it

be considered an exempt volunteer activity by

employees who make incidental use of corporate

facilities for their own political activities (1 I

CFR 114.9).

The Com mission expressed no opinion on the

application of the proposed program to contributions for state and local candidates and committees. (Date issued: February 27, 1986j Length: 7

pages)

7

'vblume 12, Numm 

AO 1985-5: Excess Campaign Funds Trensferre

from Candidate's Federal Committee to His Local C-ommittee

The Barnes for Congress Committee (the feder

committee), the principal campaign committe

for Michael P. Barnes' 1984 Congressional cam

paign, may transfer its remaining funds to th

Barnes for St. Joseph County Prosecutor Commi

tee (the local committee), Mr. Barnes' campaig

com mittee for local office, provided:

o The transfer is permissible under Indiana law

and

o The transferred funds are used for Mr. Barne

election to local office and are not converte

to his personal use.

Once it transfers its remaining excess funds 

the local committee, the federal committee ma

terminate by filing a termination report on FE

Form 3 (or in a letter containing the same info

mation). The report must disclose the dispositio

of the committee's remaining funds. II CF

I02.3(a).

Section 439a of the Federal Election Cam

paign Act (the Act) permits federal candidates 

use their excess campaign funds for such lawf

purposes as the proposed transfer. However, th

provision expressly prohibits candidates who we

not Members of Congress on January 8, 1980, suc

as Mr. Barnes, from converting excess campaig

funds to personal use.

The Commission noted that provisions of th

Act governing the proposed transfer would n

preempt relevant provisions of Indiana law (e.g

Indiana laws regulating the amount of funds whi

the federal com mittee may transfer to the loc

committee). (Date issued: February 27, 198

Length: 2 pages)

AO 1986-7: Cooperative PAC's Shareholder

Solicitation Plan

The American Crystal Sugar Company (the C

operative), an agricultural cooperative incorp

rated under Minnesota law, may implement a pl

to solicit contributions to its separate segregate

fund (the fund) from noncorporate shareholde

who own preferred stock in the cooperative. 

U.S.C. S44Ib(b)(4)(C); II CFR 1147(a). Shar

holders who decide to participate in the progra

will have their contributions deducted from th

Cooperative's payments for their sugarbeet crop

The total amount deducted may not exceed th

monetary limits for an individual's contributio

to political committees. See 2 U.S.C. §441a(a)

(C) and 44Ia(a)(3).

Cooperative's Solicitation Plan

Under the Cooperative's proposed solicitatio

plan, a shareholder with preferred stock may sig

a form authorizing the fund to deduct a portion 

his/her proceeds on the sugarbeet crop. The a

continue
FEDERAL ELECTION COMMISSION

\blume12, Num

FEC v. AMERICAN INTERNATIONAL

DEMOGRAPHIC SERVICES, INC.

On February 10, 1986, the U.S. District 

for the Eastern District of Virginia issue

order permanently enjoining American In

tional Demographic Services, Inc. (AIDS) an

Vice President, Ernest Halter, from using 

campaign finance information for comm

purposes. The court imposed a $3,500 civil pe

on the defendants for illegal use of the inf

tion.

Background

The Federal Election Campaign Act 

that l1,..any information copied from repor

statements may not be sold or used by any p

for the purpose of soliciting contributions o

com mercial purposes, other than using the 

and address of any political com mittee to s

contributions from such committee," 2 U

§438(a)(4). While the Commission has allowed 

information on political committees to be 

for contribution solicitations, the agency ha

bidden the use of individual contributor inf

tion for commercial purposes (e.g., product a

tisements) or for solicitations,

The defendants' violation of this pro

involved their illegal use of two FEC com

tapes containing individual contributor inf

tion that had been disclosed on FEC reports 

by political committees. The tapes had been 

chased by Mr. Halter's wife on behalf of the 

Information Council PAC (VICPAC), a no

neeted political committee she had establish

April 1982. (Mrs. Halter claimed she had 

chased the tapes to purge outdated informati

lists owned by VICPAC and by her.) As part 

agreement AIDS had entered into with W

Names, Inc., a list management company

Halter subsequently transferred the two 

tapes to the company. Working Names use

tapes, along with two other FEC tapes, to c

four mailing lists which the company market

list brokers and mailers.

The defendants' illegal use of FEC con

tor Information was discovered by the Na

Republican Congressional Committee (N

when a direct mail piece was addressed to 

Orsell," a fictitious contributor NRCC had 

on a report filed with the FEC. (FEC Regul

allow a political committee to "salt" its 

report with up to ten fictitious names an

dresses for purposes of detecting such illeg

of its contributor names. 11 CFR 104.3(e).

mailing was sent by the American Legls

Exchange Council, which had purchased its l

addressees from a broker that Working Name

supplied with lists. (The Council had purc

the list for a one-time use.)

After tracing original ownership of 

mailing list back to AIDS, NRCC held a me

with Mr. Halter in which he agreed, among 

April 1986

thorization form suggests that stockholders contribute $1 per share of preferred stock. (Acreage

under cultivation is proportionate to the number

of preferred shares an individual shareholder

owns.) The form includes a guideline stating tha t

the shareholder is free to contribute more or less

than that amount. The form also states that the

Cooperative will neither favor nor disadvantage

the shareholder on the basis of the amount of

his/her contribution or a decision not to contribute. . Once. the shareholder signs the authorization

form, a contribution will be automatically deducted once a year and forwarded to the fund.

The shareholder may withdraw from the deduction

plan by notifying the cooperative in writing by

March 1 of any year.

The Cooperative's proposed deduction plan is

perm issible because:

o The guideline contained in the combined solicitation and authorization form meets the solicitation requirements of the Act and FEC Regulations (2 U.S.C. §441b(b)(3); 11 CFR 114.5(a»;

and

o The contributions will come from permissible

funds (I.e., the shareholders' earnings on their

crops).

(Date issued: March 14, 1986; Length: 3 pages)

FEC v. WOLFSON

On February 6, 1986, the U.S. District Court

for the Middle District of Florida, Tampa Division, issued an order granting the FEC's motion

for summary judgment in a suit which the FEC

had brought against Allen Wolfson on October 7,

1985. (FEe v. Allen Z. Wolfson; Civil Action No.

85-1617-CIV-T-13)

As requested by the FEC, the court found

that Mr. Wolfson had violated the election law by

making contributions to authorized candidate

committees which exceeded the law's monetary

limits (2 U.S.C. §441a(a)(1)(A» and which were

made in the names of other persons (2 U.S.C.

441f).

The court permanently enjoined Mr. Wolfson

from further violations of the election law and

imposed a $52,000 civil penalty on him.

8
FEDERAL ELECTION COrvllVllSSION Volume 12, Numb3r 4

continue

FEC SUGGESTS 24 RECOMMENDATIONS

FOR CHANGES IN ELECTION LAWS

On March 11, 1986, the Commission trans

mitted to Congress and the President 24 recom

menda tions for legislative changes in federa

election laws. The recommendations were accom

panied by an explanation that at least eight of the

proposals offer total budgetary savings in the

agency's operations of between $400,000 and

$500,000. The Commission is statutorily mandated

to submit recommendations each year "for any

legislative or other action the Commission con

siders appropriate...." 2 U.S.C. §438(a)(9).

Among the 24 proposals submitted this year

four were aimed at enhancing public disclosure

and reducing some of the bookkeeping require

ments for campaigns and political committees

These four proposals are summarized below, along

with the FEC's projected savings in implementing

two of them. The proposals contain recom menda

tions that Congress:

o Require House and Senate campaigns to repor

their financial activity for an entire campaign

cycle. The current practice of reporting activi

ty on a calendar-year basis makes it difficult to

determine total amounts raised and spent on

campaigns spanning more than one year. (esti

mated savings: $140,000)

o Require monthly filers to file their report

closer to the closing date of a reporting period

in order to make information more timely.

o Clarify the statutory provision requiring politi

cal committees to report their operating ex

penses. Under the curent law,. it is unclea

whether a committee must report only initia

payments to contractors, vendors and othe

payees or whether the committee must also

report payments that the initial payees, in turn

make to SUbcontractors, agents and others.

o Apply the contribution limits to a campaign

cycle, rather than to individual elections (e.g.

primary, general, special or runoff). This a

mendment would reduce burdensome record

keeping requirements for committees, while

maintaining current contribution limits. (esti

mated savings: $140,000)

Included among the Cornmission's remaining

20 recommendations were suggestions that Con

gress:

o Reaffirm its intent that draft committees are

"political committees" subject to the reporting

requirements, prohibitions and limits of th

Act;

o Make the FEC the sole point of entry for al

documents filed by federal candidates and poli

tical com mittees;

April 1986

NEW LITIGAnON

FEC v. Rhoads for Congress Committee

The FEC asks the district court to make the

following declarations:

o Mary Rhoads, mother of 1982 Illinois House

candidate Mark Rhoads, made excessive contributions to Mr. Rhoads' principal campaign committee by personally endorsing and providing

security for two loans, portions of which were

accepted by the committee (l.e., $17,000).

o The Mid-America Conservative Political Action

Committee (MAPAC) made an excessive contribution of $2,000 to the committee. (At the time

the contribution was made, MAPAC's per election limit was $1,000, rather than $5,000, because the PAC had not yet qualified for multicandidate com mittee status.)

o The Committee and its treasurer, WilHam

Naegel, in turn, violated the law by accepting

the excessive contributions.

The FEC asks the court to order the Committee and its treasurer to refund the excessive

portion of the contributions (l.e., $16,000) to Mrs.

Rhoads and to assess an appropriate civil penalty

against each of the defendants.

U.S. District Court for the Northern District

of Illinois, Civil Action No. 85-10676, December

27, 1985.

Court's Ruling

After examining the evidence presented for

its consideration at trial, the court found that

"the defendants willfully violated the Act by

having Working Names manage the (two FEC

computer] tapes for the purpose of renting them

out to brokers and mailers."

things, to take the names of NRCC contributors

off the list broker market and to provide NRCC

with a list of the direct mail companies that had

rented the names. Mr. Halter failed to do any of

these things. Consequently, on September 28,

1982, the NRCC filed a complaint against both

Mr. Halter and AIDS with the FEC. After investigating the matter, the FEC found probable cause

to believe that the defendants had violated the

election law. Subsequently, when defendants

failed to enter into a conciliation agreement with

the agency, the FEC brought suit against them in

the district court.

FEers Suit

In its suit, the FEC asked the court to

declare that Mr. Halter and AIDS had violated

Section 438(a)(4) by using reports filed with the

FEC for commercial purposes. Specifically, the

FEC asked the court to find that defendants used

FEC information to: a) prepare contributor

listings they rented to various organizations

through a broker and b) increase the commercial

value of contributor listings they already had.

•

9
FEDERAL ELECTION COMrvllSSION

800 LINE

Designating a principal campaign comm

3:5

Transfer of candidate funds from state to 

eral committee, 1:8

\blume 12, Num

COURT CASES

Antosh v, FEC, 3:8

FEC v, Californians for Democratic Repr

tation, 3:8

PEe v, Citizens Party, 3:8

FEC v. Eldredge, 1:10

FEC v, Haley, 1:11

PEC v, MAPAC, 1:10

FEC v, NRA, 1:1I

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

Gramm v, FEC; FEC v, Gramm,

1:10

Alwin Hopfman v, FEC, 2:3

This cumulative index lists advisory opi

court cases and 800 Line articles publlshed 

Record during 1986. The first number in 

citation refers to the "number" (month) o

Record issue; the second number, followin

colon, indicates the page number in that issue

OPINIONS

1985-26: Corporation's distribution of em

eels political message, 1:7

1985-31: Affiliation between insurance cor

tion and agencies for purposes of PAC s

tations, 2:2

1985-32: Proceeds of reception beyond 

purview, 1:7

1985-33: Personal loans to candidate for 

paign, 1:7

1985-34: Nonconnected PAC's use of pro

from life insurance policy, 1:8

1985-35: Solicitability of corporate board 

bers, 1:8

1985-37: Affiliation of local Chambers of 

merce with State Chamber, 3:1

1985-38: Committee established by cand

for state and local candidates, 3:2

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

1985-40: PACts spending for Presid

testing-the-waters ac tivities, 3:2

1985-41: Contribution for general electio

cepted prior to primary, 2:3

1985-42: Campaign funds used to pay c

date's rent, 3:4

Aplil1986

4/22 U.S. Department of Commerce

1986 Class of Commerce,

Science and Technology

Fellows

Washington, D.C.

Bobby Werfel, Chief Information

Services

4/4 Trinity College

Washington, D.C.

Patricia Klein, Public Affairs

Specialist

4/29 Elkhart County League

of Women Voters

Elkhart, Indiana

Penelope Bonsall, Director,

National Clearinghouse on

Election Administration

4/4 American Bar Association

Baltimore, Maryland

Charles N. Steele, General

Counsel

4/30 Federal Bar Association,

Delaware Chapter

Wilmington, Delaware

Bradley Litchfield, Assistant

General Counsel

PUBLIC APPEARANCES

4/16 Yale Law School

New Haven, Connecticut

Charles N. Steele, General

Counsel

o Eliminate state-by-state limits for pUblicly

funded Presidential primary candidates (estimated savings: $140,000);

o Define the extent to which foreign nationals

may participate, if at all, in any American

election; and

o Establish a reimbursement account for the FEC

that will enable the agency to offset expenses

incurred from reproducing documents and tapes

purchased by requesters (estimated savings:

$100,000).

The full text of the recommendations will be

published in the Commission's 1985 Annual Report. Copies of the recommendations are also

available from the FEC's Public Records Office,

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

10
Mini Conference For Candidates •

r •

.

April 1986 FEDERAL ELECTION COMMISSION Volume 12, Numt:er 

•

Program: The Mini Conference will be held on

May 29-30 and repeated on June 6. It consists of

two workshops designed for candidate committees. For a full description of the program, turn

to page 12.

Registration and Fees: For each conference, there

is a fee of $10 to cover refreshments. (If you

attend only one workshop, the fee is $5.) All

materials are provided, at no cost, by the Federal

Election Commission. To register for one or both

workshops, complete the form below and return it

by May 2, with your check, to the Federal Election Commission. Make checks payable to FEC

Conference .

REGISTRATION FORM

Location: The workshop will be held in the Con

ference Room on the 9th noor of the Feder

Election Commission, 999 E Street, N.W., Was

ington, D.C.

'Transportation: Limited parking is available 

nearby public parking lots. The Commission ma

be reached easily by public transportation. Co

sult the map on page 3.

More Information: For more information, conta

Ian Stir-ton at the Federal Election Commissio

800/424-9530 or 202/376-3120.

Name - __~- Organization _

Address -- Phone _

First Session

___Introductory Workshop (May 29)

__....;Advanced Workshop (May 30)

Please mail this form, together

with your check, to:

FEC Conference

Federal Election Commission

999 E Street, N. W.

Washington, D.C. 20463

Second Session (repeat)

___Introductory Workshop (June 6, morning)

Advanced Workshop (June 6, afternoon) ---'

__-,Amount (please fill in)

11
April 1986 FEDERAL ELECTION COMMISSION

Mini Conference Series

Yblume 12, Numb

The

held

Federal

in May and

Election

repeated

Commission

in June,

announces

is designed

a new Mini

for Congressional

Conference

candidate

series. The

committees.

first conference,

The prog

to 

offers two workshops, an introductory session and an advanced course. Because space is limited, p

registration is required. Individuals may sign up for one or both workshops. In addition, attendees 

make appointments to meet with FEC staff.

To register, turn to page 11.

First Session - May 29 and 30, 1986

Seeond Session - J1Dle 6. 1986

Thursday

May 29

Friday

May 30

Friday

June 6

(Morning)

Friday

June 6

(Afternoon)

Candidates: Introductory Workshop

8:30 - 9:00 Registration and Coffee

9:00 - 10:30 Sources of Candidate Support

10:30 - 10:45 Break

10:45 - 12:00 Candidate Registration and Reporting

Candidates: Advanced Workshop

8:30 - 9:00 Registration and Coffee

9:00 - 10:30 Joint Fundraising

10:30 - 10:45 Break

10:45 - 12:00 Problems to Avoid

Candidates: Introductory Workshop

8:30 - 9:00 Registration and Coffee

9:00 - 10:30 Sources of Candidate Support

10:30 - 10:45 Break

10:45 - 12:00 Candidate Registration and Reporting

Candidates: Advanced Workshop

2:00 - 3:15 Joint Fundraising

3: IS - 3:30 Break

3:30 - 4:45 Problems to Avoid

FEDERAL ELECTION COMMISSION

1325 K Street, N.W.

Washington, D.C. 20463

Official Business

Bulk Rate Mail

Postage and Fees Paid

Federal Election Commission

Permit Number G-31