February 1999 Federal Election Commission Volume 25, Number 2

Table of Contents

Reports

1 Electronic Filing Update: FEC

Introduces FECFile Version 3.0

3 Georgia Special General Election

Reporting

Court Cases

1 New Litigation

2 Federal Register

Compliance

2 MUR 4751

Statistics

4 Congressional Spending Declines

from ’96 Levels

Information

5 FEC Conducts Monthly

Roundtable Sessions

6 FEC Faxline Menu

7 Advisory Opinions

8 Index

Reports Court Cases

Electronic Filing Update:

FEC Introduces FECFile

Version 3.0

The Commission has taken

another step forward in making

campaign finance reporting more

convenient and less complicated for

all FEC filers. With the release of

FECFile Version 3.0, generating

campaign finance reports and filing

them electronically have never been

easier. FECFile software allows

filers to prepare and send reports

electronically. Saving time, money

and worry, an electronic filer can

upload a report to the FEC in just a

few minutes, even on the day a

report is due.

A number of committees have

used earlier versions of FECFile

successfully for more than a year. In

addition, a small group of committees have been voluntarily testing

the new version of the program

since September.

The new version offers several

improvements over earlier versions.

First, the screen display is simpler.

Additionally, the new interface

eliminates many of the steps required to navigate Version 2.0 of the

program. Several committees testing

the program noted they spent less

time learning Version 3.0 than they

had learning Version 2.0.

(continued on page 2)

New Litigation

Mariani v. USA and FEC

Renato P. Mariani, a Pennsylvania corporate official under indictment for federal campaign finance

violations, has filed a separate civil

action and asked the court to find

that the Federal Election Campaign

Act’s (the Act’s) prohibitions on

corporate contributions and contributions in the names of others are

unconstitutional. 2 U.S.C. §§441b

and 441f. The FEC successfully

petitioned the U.S. District Court for

the Middle District of Pennsylvania

to intervene in this case and has

filed a motion to have the matter

dismissed.

Mr. Mariani, president of Empire

Sanitary Landfill, Inc., filed this suit

after he was charged in a criminal

indictment with funneling $80,000

in corporate funds to individuals

who, in turn, made contributions to

federal candidates. He is seeking

dismissal of all the criminal charges

filed against him related to the Act

because he contends that the prohibitions against corporate contributions and contributions made in the

names of others violate the First

Amendment. He bases his case on

the theory that the rise in the use of

soft money donations by political

(continued on page 2)
Federal Election Commission RECORD February 1999

2

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530

202/694-1100

202/501-3413 (FEC Faxline)

202/219-3336 (TDD for the

 hearing impaired)

800/877-8339 (FIRS)

Scott E. Thomas, Chairman

Darryl R. Wold, Vice Chairman

Lee Ann Elliott, Commissioner

David M. Mason, Commissioner

Danny L. McDonald,

 Commissioner

Karl J. Sandstrom, Commissioner

James A. Pehrkon, Acting Staff

 Director

Lawrence M. Noble, General

 Counsel

Published by the Information

 Division

Louise D. Wides, Director

Angela Rucker, Editor

http://www.fec.gov

Reports

(continued from page 1)

In addition to the improved look

of the program, users will discover

more comprehensive HELP files.

Another enhancement is a directory

of committee/candidate address

information. When committees are

reporting contributions to candidates

or other committees, the directory

function will allow users to copy

addresses automatically into their

reports. Version 3.0 also contains

Court Cases

(continued from page 1)

parties has rendered the Act ineffective, leaving no constitutional

justification for continued enforcement of the two provisions in

question.

The Commission contends in its

motion that Mr. Mariani’s claims

are frivolous and asks the district

court to dismiss this case without

sending it to the en banc appellate

court for review, which would be

required under 2 U.S.C. §437h

because of the constitutional questions at issue.

The Commission explains that

Mr. Mariani’s position is refuted by

precedent. Since 1907, corporate

contributions have been deemed

impermissible in federal elections.

The constitutionality of the prohibition on corporate contributions and

corporate independent expenditures

has been well established through

numerous court cases. In supporting

this ban, the courts have weighed

the First Amendment’s free speech

protections against the

government’s interest in preventing

real or perceived corruption. The

courts have held that corporations

are among the entities that can be

singled out in the Act for special

treatment related to contributions

and expenditures largely because of

their ability to amass great wealth

and to use it to incur political debts

from legislators they support with

contributions.

The Commission further argues

that Mr. Mariani’s claims of a

collapse of the campaign finance

system because of soft money are

erroneous and irrelevant. In Buckley

v. Valeo, the U.S. Supreme Court

explicitly acknowledged the potential for skirting some of the Act’s

restrictions while repeatedly upholding the Act’s limits on contributions

to candidates.

The Commission also contends

that Mr. Mariani’s second claim—

that the prohibition against contributions in the names of others is

unconstitutional—is without legal

basis. This section of the Act, the

Commission maintains, ensures that

no one evades the Act’s contribution

limits by making contributions

through other people and ensures

full and accurate disclosure to the

public.

U.S. District Court for the Middle

District of Pennsylvania, 98-1701,

December 15, 1998. ✦

MUR 4751

Party Committee Pays Civil

Penalty for Improper

Transfers

The New Jersey Democratic State

Committee has paid a $15,000 civil

penalty and transferred $54,279

from its federal account to its

nonfederal account after the FEC

determined that the committee had

improperly transferred funds during

the 1996 election cycle. The committee had previously transferred

$62,216 from its federal account to

its nonfederal account to remedy

some of the excessive transfers it had

made during the ’96 cycle.

In only limited circumstances can

a committee with both federal and

nonfederal accounts transfer funds

Compliance

Federal Register

 Federal Register notices are

available from the FEC’s Public

Records Office.

Notice 1999-1

Filing Dates for the Georgia

Special Election (64 FR 3298,

January 21, 1999)

Schedule H forms for those committees that must report the allocation

of federal and nonfederal expenses,

and it has been refined so that it

sorts information much more

quickly than before.

The FEC is planning to send

FECFile Version 3.0 to over 1,300

committees that have previously

requested the software. Other

committees may request a copy of

this free software by calling the

Electronic Filing Office at 202/694-

1306 or by calling the FEC’s toll-free

number (800/424-9530) and asking

for the Electronic Filing Office. ✦
February 1999 Federal Election Commission RECORD

3

Close of Books Certified/

Registered

Mail Date

Filing Date

Pre-General

Post-General

February 3

March 15

February 8

March 25

February 11

March 25

Close of Books Certified/

Registered

Mail Date

Filing Date

Pre-General

Pre-Runoff

Post Runoff

February 3

February 24

April 5

February 8

March 1

April 15

February 11

March 4

April 15

Close of Books Certified/

Registered

Mail Date

Filing Date

Pre-General

Mid-Year

February 3

June 30

February 8

July 31

February 11

July 31

Close of Books Certified/

Registered

Mail Date

Filing Date

Pre-Runoff

Post-Runoff

February 24

April 5

March 1

April 15

March 4

April 15

Georgia Special General Election Reporting

 Committees1 involved in the February 23 special general election and/or the

March 16 special runoff election to fill the 6th Congressional District seat that

was vacated by former Congressman Newt Gingrich must follow the reporting

schedules below. Note that 48-hour notices are required of authorized

committees that receive contributions (including loans) of $1,000 or more

between February 4 and February 20 in the special general election and

between February 25 and March 13 in the special runoff election (if the runoff

is required).

1

These committees include authorized committees of candidates running in the

election and other political committees that support these candidates and do

not file monthly.

For Committees Involved Only in Special General When No

Runoff is Held:

For Committees Involved in Special General and Special

Runoff:

For Committees Involved Only in Special General When Both

Special General and Runoff Elections Are Held:

For Committees Involved Only in Special Runoff:

from its nonfederal account to its

federal account. When paying

shared state/federal expenses, a state

party committee with federal and

nonfederal accounts must pay the

entire bill from its federal account

and can transfer funds from its

nonfederal account to its federal

account only to cover the nonfederal

share of the expenses. 11 CFR

106.5(g)(1)(i). The allocable

activities must be itemized on

committee reports. 11 CFR

104.10(b)(3) and 106.5(g)(2)(ii)(A).

Apart from this narrow exception,

provided in 11 CFR 106.5 and

106.6(e), committees must deposit

only federally-permissible funds

into their federal accounts.

102.5(a)(1)(i).

During five reporting periods

between January 1, 1996, and

December 31, 1996, the committee

transferred funds from its nonfederal

account to its federal account. The

transfers represented approximately

$117,000 in excess of the allocable

nonfederal amount for shared

political activities.

In addition to finding that the

excessive transfers were not made in

compliance with FEC regulations,

the Commission found that these

transfers contained excessive

individual and PAC contributions

and impermissible corporate contributions. 2 U.S.C. §§441a(f) and

441b(a). New Jersey state law,

which governs the committee’s

nonfederal activities, permits

individuals, PACs and corporations

to make contributions of up to

$25,000 annually. Federal statutes,

however, limit contributions to state

party committees to $5,000 per year

for individuals and PACs, and

prohibit corporate contributions.

This compliance matter was

initiated by the FEC. The Commission entered into a conciliation

agreement with the committee prior

to finding probable cause that the

committee had violated the

Commission’s statutes and regulations. ✦
Federal Election Commission RECORD February 1999

4

Congressional Spending

Declines from ’96 Levels

With fewer open seats and fewer

competitive races when compared to

1996, the amount of money that

House candidates raised and spent

in their 1998 campaigns declined.

Post-general reports, covering

financial activity from January 1,

1997, through November 23, 1998,

revealed that spending in House

races totaled $372.9 million, an 8

percent decline from 1996. House

candidates collected $420.8 million,

down from $439.6 million in 1996.

The drop in spending in the

House contributed to an overall

Statistics decrease in spending for all congressional candidates. Those running in

the general election for seats in the

House or Senate spent a combined

$617.1 million in 1998 races, down

$9.2 million from 1996. This total

does not include more than $12

million spent by candidates in

special elections in 1997 and 1998,

nor does it include the more than

$87 million spent by candidates who

lost primary elections.

In the receipt category, congressional candidates raised $665.1

million, a slight increase over the

$659.6 million raised in 1996.

Candidates gave their own committees $53.6 million and received

contributions of $374.9 million from

individuals and $200.3 million from

PACs and other committees.

Senate candidates bucked the

overall congressional spending trend

with an 11 percent increase in both

disbursements and receipts. Spending increased from $220.8 million in

1996 to $244.3 million in 1998;

receipts increased from $220 million

in 1996 to $244.4 million in 1998.

This article and the accompanying graphs are based on data taken

from a December 29, 1998, news

release. The release is available at

the following places.

• FEC home page (http://

www.fec.gov; select “News

Releases and Media Advisories”)

• FEC Public Records and Press

offices (800/424-9530)

• FEC Faxline (202/501-3413,

document 610) ✦

Close Elections: Median Disbursements of 1998 House Candidates Who

Won Elections with 55 Percent or Less of the Vote

Data in this graph are taken from reports covering financial activity from January 1, 1997, through November 23, 1998.

$0

$0.3

$0.6

$0.9

$1.2

$1.5

Democratic

Incumbents

 v.

 Republican

 Challengers

Democratic

Open Seat

Challengers

 v.

 Republican

 Open Seat

Challengers

Democratic

 Challengers

 v.

 Republican

Incumbents

Republican

Incumbents

v.

Democratic

Challengers

Republican

Open Seat

Challengers

v.

Democratic

Open Seat

Challengers

Republican

Challengers

v.

Democratic

Incumbents

Millions

Democrats

Republicans

Democratic Winners Republican Winners
February 1999 Federal Election Commission RECORD

5

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Republican Challengers

Democratic Incumbents

1992 1994 1996 1998

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Democratic Challengers

Republican Incumbents

1992 1994 1996 1998

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Democratic Open Seats

Republican Open Seats

1992 1994 1996 1998

What They Spent: Median Disbursements by House Candidates

Data in these graphs are taken from reports covering financial activity from the start of the election cycle (January 1)

through the post-general reporting period. Only statistics from candidate committees that filed post-general reports are

included in these graphs.

Date Subject Intended Audience

March 3

9:30-11 a.m.

Candidate

Preparations for the

Next Election Cycle

(Code #399)

•

•

Candidates &

Congressional Staff

Political Party Staff

April 7

9:30-11 a.m.

Use of the Internet to

Raise Funds

(Code #499)

•

•

•

Candidates

Political Party Staff

Nonconnected PACs

May 5

9:30-11 a.m.

Collecting Agent

Activity

(Code #599)

•

•

Corporate/Labor/

Trade PAC staff

Lawyers,

Accountants and

Consultants to above

PACs

FEC Conducts Monthly

Roundtable Sessions

The FEC has begun conducting

monthly roundtable sessions for the

regulated community at its offices in

Washington. The roundtable sessions, limited to 10 participants per

session, focus on a range of topics.

See the chart at right for dates and

topics.

Registration is $25 and will be

accepted on a first-come, firstserved basis. Please call the FEC

before registering to ensure that

participants are still being accepted

for the sessions. Prepayment is

required. The registration form is

available at the FEC’s web site

(http://www.fec.gov) and from

Faxline, the FEC’s automated fax

Information

(continued on page 6)
Federal Election Commission RECORD February 1999

6

Information

(continued from page 5)

FEC Faxline Menu

FEC Faxline documents may be

ordered 24 hours a day, 7 days a week,

by calling 202/501-3413 on a touch

tone phone. You will be asked for the

numbers of the documents you want,

your fax number and your telephone

number. The documents will be faxed

shortly thereafter.

Federal Election Commission

411. Complete Menu of All Material

Available

501. The FEC and the Federal

Campaign Finance Law

502. La Ley Federal relativa al

Financiamiento de las Campañas

503. Federal and State Campaign

Finance Laws

504. Compliance with Laws Outside

the FEC’s Jurisdiction

505. Biographies of Commissioners

and Officers

506. Telephone Directory

507. Table of Organization

508. Index for 1997 Record

Newsletter

509. Free Publications

510. Personnel Vacancy

Announcements

511. Freedom of Information Act

Requesters’ Guide

512. Legal Opportunities at the FEC

513. 1998 Legislative Recommendation

Disclosure

521. Guide to Researching Public

Records

522. Accessibility of Public Records

Office

523. Federal/State Records Offices

524. Using FEC Campaign Finance

Information

525. State Computer Access to FEC

Data

526. Direct Access Program (DAP)

527. Sale and Use of Campaign

Information

528. Combined Federal/State

Disclosure Directory 1998 on

Disk

529. Selected Political Party Organizations and Addresses

530. Internet Access to the FEC

531. Downloadable Databases via the

Internet

532. Electronic Filing Took Kit

533. State Campaign Finance and

Lobbying Data on the Internet

Limitations

546. Contributions

547. Coordinated Party Expenditure

Limits

548. Advances: Contribution Limits

and Reporting

549. Volunteer Activity

550. Independent Expenditures

551. Local Party Activity

552. Corporate Communications/

Facilities

553. Trade Associations

554. Foreign Nationals

555. The $25,000 Annual Contribution Limit

556. Personal Use of Campaign

Funds

557. Delegate Activity

558. Partnerships

Public Funding

566. Public Funding of Presidential

Elections

567. The $3 Tax Checkoff

568. 1993 Changes to Checkoff

569. Recipients of Public Funding

570. Presidential Fund Income Tax

Checkoff Status

571. Presidential Spending Limits

Compliance

581. Candidate Registration

582. Committee Treasurers

583. Special Notices on Political Ads

and Solicitations

584. 10 Questions from Candidates

585. Filing a Complaint

586. 1998 Reporting Dates

587. 1998 Congressional Primary

Dates

588. 1998 Special Election Reporting

Dates

589. 1998 FEC Regional Conference

Schedule

590. FEC Monthly Roundtables

Money in Politics Statistics

601. 1991-2 Political Money

602. 1998 Year-End PAC Count

603. 1993-4 Congressional

604. 1993-4 National Party

605. 1993-4 PAC Finances

606. 1995-6 Congressional

607. 1995-6 National Party

608. 1995-6 PAC Finances

609. 1997-8 National Party

610. 1997-8 Congressional

611. 1997-8 PAC Finances

1996 Presidential

651. 1996 Presidential Primary Dates

652. Selected 1996 Campaign Names

and Addresses

653. Selected 1996 Campaign

Finance Figures

654. 1996 Public Funding Certifications and Payments

655. 1996 Presidential General

Election Ballots

656. 1996 Presidential General

Election Results

Office of Election Administration

701. List of Reports Available

702. Voting Accessibility for the

Elderly and Handicapped Act

703. National Voter Registration Act

Regulations

704. National Voter Registration Act

of 1993

705. The Electoral College

706. Organizational Structure of the

American Election System

707. Primary Functions of an Election

System

Forms

801. Form 1, Statement of Organization

802. Form 2, Statement of Candidacy

803. Form 3 and 3Z, Report for an

Authorized Committee

804. Form 3X, Report for Other Than

an Authorized Committee

805. Form 5, Report of Independent

Expenditures

806. Form 6, 48-Hour Notice of

Contributions/Loans Received

807. Form 7, Report of Communication Costs

808. Form 8, Debt Settlement Plan

809. Form 1M, Notification of

Multicandidate Status

Schedules

825. Schedule A, Itemized Receipts

826. Schedule B, Itemized Disbursements

827. Schedules C and C-1, Loans

828. Schedule D, Debts and Obligations

829. Schedule E, Itemized Independent Expenditures

830. Schedule F, Itemized Coordinated Expenditures

831. Schedules H1 –H4, Allocation

system (call 202/501-3413 and

request document 590). For more

information, call 800/424-9530

(press 1) or 202/694-1100. ✦
February 1999 Federal Election Commission RECORD

7

832. Schedule I, Aggregate Page

Nonfederal Accounts

Regulations (11 CFR Parts 100-201)

100. Part 100, Scope and Definitions

1007. Part 100.7, Contribution

1008. Part 100.8, Expenditure

101. Part 101, Candidate Status and

Designations

102. Part 102, Registration, Organization and Recordkeeping by

Political Committees

1021. Part 102.17, Joint Fundraising

by Committees Other Than SSFs

103. Part 103, Campaign Depositories

104. Part 104, Reports by Political

Committees

1047. Part 104.7, Best Efforts

105. Part 105, Document Filing

106. Part 106, Allocations of Candidate and Committee Activities

107. Part 107, Presidential Nominating Convention, Registration and

Reports

108. Part 108, Filing Copies of

Reports and Statements with

State Offices

109. Part 109, Independent Expenditures

110. Part 110, Contribution and

Expenditure Limitations and

Prohibitions

1101. Part 110.1, Contributions by

Persons Other Than Multicandidate Political Committees

1102. Part 110.2, Contributions by

Multicandidate Committees

1103. Part 110.3, Contribution

Limitations for Affiliated

Committees and Political Party

Committees; Transfers

1104. Part 110.4, Prohibited Contributions

1105. Part 110.5, Annual Contribution

Limitation for Individuals

1106. Part 110.6, Earmarked Contributions

1107. Part 110.7, Party Committee

Expenditure Limitations

1108. Part 110.8, Presidential Candidate Expenditure Limitations

1109. Part 110.9, Miscellaneous

Provisions

1110. Part 110.10, Expenditures by

Candidates

1111. Part 110.11, Communications;

Advertising

1112. Part 110.12, Candidate Appearances on Public Educational

Institution Premises

1113. Part 110.13, Nonpartisan

Candidate Debates

1114. Part 110.14, Contributions to

and Expenditures by Delegates

and Delegate Committees

111. Part 111, Compliance Procedure

112. Part 112, Advisory Opinions

113. Part 113, Excess Campaign

Funds and Funds Donated to

Support Federal Officeholder

Activities

114. Part 114, Corporate and Labor

Organization Activity

115. Part 115, Federal Contractors

116. Part 116, Debts Owed by

Candidates and Political

Committees

200. Part 200, Petitions for Rulemaking

201. Part 201, Ex Parte Communications

Recent Actions on Regulations,

Including Explanations

and Justifications

227. Electronic Filing of Reports by

Political Committees

228. Coordinated and Independent

Expenditures by Party Committees

229. Definition of “Member” of a

Membership Association

230. Prohibited and Excessive

Contributions; “Soft Money”

231. Recordkeeping and Reporting

232. Express Advocacy

233. Qualified Nonprofit Corporations

234. Electronic Filing of Reports by

Presidential Candidates

235. Public Financing of Presidential

Primary and General Election

Candidates

236. Treatment of Limited Liability

Companies under the Federal

Election Campaign Act

U.S. Code (Title 2)

431. Section 431 442. Section 442

432. Section 432 451. Section 451

433. Section 433 452. Section 452

434. Section 434 453. Section 453

437. Section 437 454. Section 454

4377. Section 437g 455. Section 455

438. Section 438

439. Section 439

441. Section 441

4411. Section 441a

4412. Section 441b

4413. Section 441c

4414. Section 441d

4415. Section 441e

4416. Section 441f

Advisory Opinions

9801-25. AOs 1998-1 through 1998-25

9701-29. AOs 1997-1 through 1997-29

9601-52. AOs 1996-1 through 1996-52

9501-49. AOs 1995-1 through 1995-49

9401-40. AOs 1994-1 through 1994-40

9301-25. AOs 1993-1 through 1993-25

9201-44. AOs 1992-1 through 1992-44

9101-40. AOs 1991-1 through 1991-40

9001-40. AOs 1990-1 through 1990-40

Advisory

Opinions

Advisory Opinion Requests

Advisory opinion requests are

available for review and comment in

the Public Records Office.

AOR 1998-27

Status as state committee of political

party (Hawaii Green Party, December 15, 1998; 4 pages plus 26-page

attachment) ✦

Back Issues of the

Record Available on

the Internet

This issue of the Record and all

other issues of the Record starting

with January 1996 are available

through the Internet as PDF files.

Visit the FEC’s World Wide Web

site at http://www.fec.gov and

click on “What’s New” for this

issue. Click “Help for Candidates,

Parties and PACs” to see back issues. Future Record issues will be

posted on the web as well. You

will need Adobe® Acrobat®

Reader software to view the publication. The FEC’s web site has

a link that will take you to Adobe’s

web site, where you can download

the latest version of the software

for free.
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Washington, DC 20463

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Printed on recycled paper

Federal Election Commission RECORD February 1999

Index

The first number in each citation

refers to the “number” (month) of

the 1999 Record issue in which the

article appeared. The second

number, following the colon,

indicates the page number in that

issue. For example, “1:4” means

that the article is in the January

issue on page 4.

Advisory Opinions

1998-22: Application of expenditure

definition and disclaimer requirements to web site containing

express advocacy, 1:16

1998-23: Status as state committee

of political party, 1:16

Compliance

MUR 4750: Excessive contributions, 1:13

MUR 4751: Excessive and improper

transfer of nonfederal funds,

excessive contributions, corporate

contributions, 2:2

MUR 4796: Corporate contributions, contributions in the names

of others, 1:13

Court Cases

_____ v. FEC

– Judd, 1:3

– Mariani, 2:1

– RNC (98-5263), 1:2

Other

Burris v. Russell, 1:3

Cincinnati v. Kruse, 1:3

Regulations

Definition of “Member” of a

Membership Association, 1:10

Limited Liability Companies, 1:11

Public Financing of Presidential

Primary and General Election

Candidates, 1:7

Soft money, 1:12

Reports

Electronic filing, 1:6; 2:1

Reports due in 1999, 1:4

Special Election, Georgia, 2:3

Statistics

1997-98 Congressional, 2:4