Reports Advisory Opinions by fjzhangxiaoquan

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									October 2009                          Federal Election Commission                            Volume 35, Number 10



Table of Contents
                                         Reports                                    Advisory
   Reports
 1 October Reporting Reminder         October Reporting Reminder
                                                                                    Opinions
                                        The following reports are due in          AO 2009-14
 1 Advisory Opinions
                                      October:                                    LLC Affiliated with Domestic
   Statistics                         •	All	principal	campaign	committees	        Subsidiary of a Foreign
 9 House and Senate Campaign            of House and Senate candidates            Corporation May Administer
   Fundraising Through June             must file a quarterly report by Oc-       an SSF
                                        tober 15, 2009. The report covers
   800 Line
                                        financial activity from July 1 (or            A domestic subsidiary of a for-
 9 Volunteer Activity                                                             eign corporation may serve as the
                                        the day after the closing date of the
                                        last report) through September 30;        connected organization of a separate
   Outreach                                                                       segregated fund (SSF). An affiliated
12 San Francisco Regional             •	Principal	campaign	committees	of	
                                        Presidential candidates must file         limited liability company (LLC) that
   Conference for Campaigns, Party
                                        a report by October 15, if they are       is treated as a partnership but owned
   Committees and Corporate/Labor/
   Trade PACs                           quarterly filers (the report covers fi-   entirely by corporations, and which
                                        nancial activity from July 1 through      shares the same foreign parent as the
13 Index                                September 30), or by October 20, if       domestic subsidiary, may administer
                                        they are monthly filers (the report       and pay the associated costs of run-
                                        covers activity for the month of          ning the SSF. The abbreviated name
                                        September); and                           of that SSF may reflect the foreign
  New York Special                    •	National	party	committees,	po-            parent’s name.
  Election: District 23                 litical action committees (PACs)          Background
                                        following a monthly filing schedule          Mercedes-Benz USA LLC
  New	York	will	hold	a	special	         and state, district and local party       (MBUSA LLC) is a LLC orga-
  election	on	November	3,	2009,	to	     committees that engage in report-         nized under the laws of the State
  fill the House of Representatives     able “federal election activity” (see     of Delaware and headquartered
  seat vacated by Rep. John             “State, District and Local Party          in	New	Jersey;	its	sole	member	is	
  McHugh.                               Committees, on page 3) must file a        Daimler	North	America	Corpora-
                                        monthly report by October 20. This        tion	(DNAC).	DNAC	is	the	wholly	
  The applicable pre- and post-         report covers activity for the month      owned subsidiary of Daimler AG, a
  election reporting dates for          of September. 11 CFR 104.5.               German company that is the ulti-
  committees involved in this
                                                                                  mate parent of the Daimler-related
  election are available at http://   Notification of Filing Deadlines            companies. Sterling Truck Corpora-
  www.fec.gov/info/report_dates.         In addition to publishing this           tion (Sterling Corp.) is a Delaware
  shtml.                              article, the Commission notifies            corporation that is headquartered
                                      committees of filing deadlines on its
                                                                                                 (continued on page 3)
                                                        (continued on page 2)
Federal Election Commission RECORD                                                                                October 2009



Reports                                    Treasurer’s Responsibilities                    Senate committees and other
(continued from page 1)                        The Commission provides                 committees that file with the Secre-
                                           reminders of upcoming filing dates          tary of the Senate are not subject to
web site, via its automated Faxline        as a courtesy to help committees            the mandatory electronic filing rules,
and through reporting reminders            comply with the filing deadlines set        but may file an unofficial copy of
called prior notices. Prior notices are    forth in the Federal Election Cam-          their reports with the Commission in
distributed exclusively by electronic      paign Act (the Act) and Commission          order to speed disclosure.
mail. For that reason, it is impor-        regulations. Committee treasurers               The Commission’s electronic
tant that every committee update           must comply with all applicable             filing software, FECFile, is free and
its Statement of Organization (FEC         filing deadlines established by law,        can be downloaded from the FEC’s
Form 1) to disclose a current e-mail       and the lack of prior notice does           web	site.	New	FECFile	Version	
address. To amend Form 1, electron-        not constitute an excuse for failing        6.4.1.2 is available for download
ic filers must submit Form 1 filled        to comply with any filing deadline.         from the FEC web site at http://
out in its entirety. Paper filers should   Accordingly, reports filed by meth-         www.fec.gov/elecfil/updatelist.html.
include only the committee’s name,         ods other than Registered, Certified        All reports filed after July 8, 2009,
address, FEC identification number         or Overnight Mail (see below), or           must be filed in Format Version
and the updated or changed portions        electronically, must be received by         6.4.1.2 (the new version). Reports
of the form.                               the Commission’s (or the Secretary          filed in previous formats will not be
                                           of the Senate’s) close of business          accepted. Filers may also use com-
                                           on the last business day before the         mercial or privately developed soft-
                                           deadline.                                   ware as long as the software meets
    Federal Election Commission                                                        the Commission’s format specifica-
    999 E Street, NW                       Filing Electronically                       tions, which are available on the
    Washington, DC 20463                      Under the Commission’s manda-            Commission’s web site. Committees
    800/424-9530 (Toll-Free)               tory electronic filing regulations,         using commercial software should
    202/694-1100 (Information Div.)        individuals and organizations that          contact their vendors for more
    202/501-3413 (FEC Faxline)             receive contributions or make ex-           information about the Commission’s
    202/219-3336 (TDD for the              penditures, including independent           latest software release.
     hearing impaired)                     expenditures, in excess of $50,000 in
                                           a calendar year—or have reason to           Timely Filing for Paper Filers
    Steven T. Walther,                     expect to do so—must file all reports          Registered and Certified Mail.
      Chairman
    Matthew S. Petersen,
                                           and statements with the FEC elec-           Reports sent by registered or certi-
     Vice Chairman                         tronically.1 Reports filed electroni-       fied mail must be postmarked on or
    Cynthia L. Bauerly,                    cally must be received and validated        before the mailing deadline to be
      Commissioner                         by the Commission by 11:59 p.m.             considered timely filed. A commit-
    Caroline C. Hunter,                    Eastern Standard/Daylight Time              tee sending its reports by certified
      Commissioner                         on the applicable filing deadline.          or registered mail should keep its
    Donald F. McGahn II,                   Electronic filers who instead file on       mailing receipt with the U.S. Postal
      Commissioner                         paper or submit an electronic report        Service (USPS) postmark as proof
    Ellen L. Weintraub,                    that does not pass the Commission’s         of filing because the USPS does
      Commissioner                         validation program by the filing            not keep complete records of items
    Robert A. Hickey,                      deadline will be considered nonfilers       sent by certified mail. See 2 U.S.C.
     Staff Director                        and may be subject to enforcement           §434(a)(5) and 11 CFR 104.5(e).
    Thomasenia Duncan,                     actions, including administrative              Overnight Mail. Reports filed via
     General Counsel                       fines. 104.18(e).                           overnight mail2 will be considered
    Published by the Information                                                       timely filed if the report is received
     Division of the Office of                                                         by the delivery service on or before
     Communications
    Greg J. Scott,
                                           1
                                            The regulation covers individuals and                       (continued on page 3)
     Assistant Staff Director              organizations required to file reports of
    Amy L. Kort,                           contributions and/or expenditures with
                                           the Commission, including any person
                                                                                       2
                                                                                         “Overnight mail” includes Priority or
     Deputy Assistant Staff Director                                                   Express Mail having a delivery confir-
    Myles G. Martin,                       making an independent expenditure.
                                           Disbursements for “electioneering           mation, or an overnight service with
     Editor                                                                            which the report is scheduled for next
                                           communications” do not count toward
    http://www.fec.gov                     the $50,000 threshold for mandatory         business day delivery and is recorded in
                                           electronic filing. 11 CFR 104.18(a).        the service’s on-line tracking system.

2
October 2009                                                                         Federal Election Commission RECORD



Reports                                 Faxline. For more information on          •	Visit	the	FEC’s	web	page	at	http://
(continued from page 2)                 reporting, call the FEC at 800/424-         www.fec.gov/info/report_dates.
                                        9530 or 202/694-1100.                       shtml to view the reporting tables
the mailing deadline. A committee                                                   online.
sending its reports by Express or       State, District and Local Party
Priority Mail, or by an overnight de-   Committees                                        —Elizabeth Kurland
livery service, should keep its proof       State, district and local party
of mailing or other means of trans-     committees that engage in certain
mittal of its reports. See 2 U.S.C.     levels of “federal election activity”     Advisory Opinions
§434(a)(5) and 11 CFR 104.5(e).                                                   (continued from page 1)
                                        must file on a monthly schedule. See
   Other Means of Filing. Reports       11 CFR 300.36(b) and (c)(1). Com-         in Oregon; it is the wholly owned
sent by other means—including first     mittees that do not engage in report-     subsidiary	of	Daimler	Trucks	North	
class mail and courier—must be          able “federal election activity” may      America	LLC	(DTNA	LLC),	the	
received by the FEC (or the Secre-      file on a semi-annual basis in 2009.      sole	member	of	which	is	DNAC.
tary of the Senate) before close of     See 11 CFR 104.5(c)(1)(i).                   Sterling Corp. intends to es-
business on the filing deadline. See                                              tablish an SSF and MBUSA LLC
11 CFR 100.19 and 104.5(e).             National Party Committees
                                                                                  would like to use its personnel and
   Paper forms are available for           National	committees	of	political	
                                                                                  resources to administer that SSF,
downloading at the FEC’s web site       parties must file on a monthly sched-
                                                                                  including paying the administrative
(http://www.fec.gov/info/forms.         ule in all years. 2 U.S.C. §434(a)(4)
                                                                                  and solicitation expenses of the SSF
shtml) and from FEC Faxline, the        (B) and 11 CFR 104.5(c)(4).
                                                                                  out of its External Affairs and Public
agency’s automated fax system                                                     Policy-Americas (EAPP) cost center.
(202/501-3413). The 2009 Report-        Political Action Committees
                                           PACs (separate segregated funds        EAPP expenses are paid from MBU-
ing Schedule is also available on the                                             SA LLC’s general treasury, which
FEC’s web site (http://www.fec.gov/     and nonconnected committees)
                                        that filed on a quarterly basis in        consists of U.S.-generated funds, or
info/report_dates.shtml), and from                                                using its short-term credit line with
                                        2008 file on a semiannual basis in
                                        2009. Monthly filers continue on          Daimler	North	America	Finance	
                                        the monthly schedule. PACs may            Corporation, which MBUSA LLC
  FECTube and E-                        change their filing schedule, but         repays from domestic revenues.
  Learning                              must first notify the Commission in          MBUSA LLC would invoice
  As the Commission considers           writing. Electronic filers must file      Daimler AG for EAPP expenses per
  recommendations to improve            this request electronically. A com-       the terms of an agreement between
  its website and Internet              mittee may change its filing fre-         MBUSA and Daimler AG for the
  communications (see August            quency only once a year, after giving     provision of and payment for such
  Record, page 1), the agency has       notice of change in filing frequency      services (the “Service Level Agree-
  added an E-Learning section to        to the Commission. The committee          ment”). Rather than reimburse
  its Educational Outreach web          will receive a letter indicating the      MBUSA LLC directly for EAPP ex-
  page and has also launched its        Commission’s acknowledgment of            penses, Daimler AG permits MBU-
  own	YouTube	channel:	 http://         the request. All future reports must      SA LLC to credit those expenses
  www.youtube.com/FECTube. The          follow the new filing frequency. 11       against the amount it owes Daimler
  E-Learning page offers interactive    CFR 104.5(c).                             AG for vehicles and products.
  presentations that allow users                                                     Under the Service Level Agree-
  to test their knowledge of the        Additional Information                    ment, Daimler AG authorizes annual
  information presented and video          For more information on 2009           spending levels for the EAPP cost
  workshops. The workshops are          reporting dates:                          center and “approve[s] the [EAPP]
  actually	hosted	on	YouTube	                                                     services to be provided by [MBUSA
                                        •	See	the	reporting	tables	in	the	
  and include presentations about                                                 LLC] via the Budgeting and Plan-
                                          January 2009 Record;
  the Commission and the law it                                                   ning procedures of the Daimler
                                        •	Call	and	request	the	reporting	
  administers, as well as highlights                                              Group.” Daimler AG does not
                                          tables from the FEC at 800/424-
  from the agency’s workshop on                                                   otherwise guide or prioritize how
                                          9530 or 202/694-1100;
  lobbyist bundling. Additional                                                   MBUSA LLC must spend EAPP
                                        •	Fax	the	reporting	tables	to	yourself	
  content and other improvements                                                  funds. All decision-making regard-
                                          using the FEC’s Faxline (202/501-
  will appear in the weeks and                                                    ing the proposed SSF would be
                                          3413, document 586); or
  months ahead.                                                                   made exclusively by executive or
                                                                                                    (continued on page 4)

                                                                                                                          3
Federal Election Commission RECORD                                                                            October 2009



Advisory Opinions                         associations may serve as connected       electing partnership status) to pay
(continued from page 3)                   organizations of their SSFs. Pay-         the administrative and solicitation
                                          ments by a connected organization         costs of an SSF established by the
administrative personnel of MBUSA         for the establishment, administration     partnership’s (or LLC’s) corporate
LLC or Sterling Corp. who are U.S.        or solicitation of contributions to its   owner, but only when the partner-
citizens or legal permanent residents.    SSF are exempt from the definition        ship is wholly owned by corpora-
Contributions to the SSF would not        of contribution and expenditure. 2        tions and affiliated with at least one
be solicited or accepted from per-        U.S.C. §441b(b)(2)(C) and 11 CFR          of the corporations. In that case,
sons who are foreign nationals.           114.1(a)(2)(iii).                         the administrative and solicitation
   Additionally, MBUSA LLC and                The Commission has held previ-        support provided by a partnership
Sterling Corp. propose a number           ously that foreign nationals1 may         may be construed as coming from
of potential official names for the       not serve as an SSF’s connected           the affiliated corporation(s). See, for
SSF, but would like to abbreviate the     organization. See AOs 1977-53             example, AOs 2004-42, 2001-18 and
name of the SSF to “Daimler PAC.”         and 1982-34. However, domestic            1992-17.
                                          subsidiaries of foreign corporations         MBUSA is treated as a partner-
Analysis
                                          may establish and administer SSFs         ship under Commission regulations
   Connected Organization. The
                                          if they are discrete entities whose       because it is a non-publicly traded
Federal Election Campaign Act (the
                                          principal place of business is the        LLC that has not affirmatively
Act) defines a connected organiza-
                                          United States, and if those exercis-      elected treatment as a corporation
tion as any organization that is not a
                                          ing decision-making authority over        for tax purposes. In addition, since
political committee and that directly
                                          the SSF are not foreign nationals.        MBUSA is wholly owned by
or indirectly establishes, administers
                                          See AOs 1980-100 and 1980-111.            DNAC, MBUSA would be able to
or financially supports a political
                                              The Bipartisan Campaign Reform        perform the functions of a connected
committee. 2 U.S.C. §431(7) and 11
                                          Act of 2002 (BCRA) amended the            organization for an SSF connected
CFR 100.6(a). Corporations, labor
                                          Act to expand the prohibition on          to DNAC, including paying the
organizations, membership orga-
                                          campaign contributions and dona-          SSF’s administrative and solicitation
nizations, cooperatives and trade
                                          tions by foreign nationals. The           costs. For internal business reasons,
                                          BCRA extended the ban to prohibit         however, DNAC has chosen not to
                                          foreign national contributions that       serve as the connected organization
                                          were made “directly or indirectly.”       for the proposed SSF; Sterling Corp.
    Campaign Guides                       See 2 U.S.C. §441e.                       will instead serve as the connected
    Available                                 In this situation, Sterling Corp.’s   organization.
      For each type of committee, a       ultimate parent is Daimler AG, a             Through DNAC, MBUSA is
    Campaign Guide explains, in clear     German company. However, Sterling         also affiliated with Sterling Corp.,
    English, the complex regulations      Corp. is a U.S. corporation that is or-   which is DNAC’s wholly owned
    regarding the activity of political   ganized under the laws of Delaware        subsidiary. Although previous Com-
    committees. It shows readers,         and is headquartered in Oregon. As        mission advisory opinions have not
    for example, how to fill out FEC      such, and given that foreign nation-      addressed an arrangement whereby
    reports and illustrates how the law   als will not have decision-making         an LLC that is wholly owned by and
    applies to practical situations.      authority regarding the proposed          affiliated with one corporation pays
      The FEC publishes four              SSF, Sterling Corp. may serve as the      the administrative and solicitation
    Campaign Guides, each for a           SSF’s connected organization.             costs of another affiliated corpora-
    different type of committee,              Personnel and Resources. The          tion’s SSF, the Commission finds no
    and we are happy to mail your         Commission has interpreted the            material differences in the proposed
    committee as many copies as           Act and Commission regulations            arrangement that would affect the
    you need, free of charge. We          to permit a partnership (or an LLC        ability of MBUSA LLC to use its
    encourage you to view them on                                                   resources and personnel to adminis-
    our web site (www.fec.gov).                                                     ter Sterling Corp.’s SSF. As a result
                                          1
                                           The Act and Commission regulations
      If you would like to place an       define “foreign national” to include
                                                                                    of this affiliation, MBUSA may pay
    order for paper copies of the         “foreign principals,” as defined at 22    the administrative and solicitation
    Campaign Guides, please call the      U.S.C. §611(b). 2 U.S.C. §441e(b) and     costs of Sterling Corp.’s SSF. The
    Information Division at 800/424-      11 CFR 110.20(a)(3). Under 22 U.S.C.      SSF must identify Sterling Corp.
    9530.                                 §611(b), “foreign principal” includes
                                          corporations organized under the laws
                                                                                                    (continued on page 5)
                                          of or having their principal place of
                                          business in a foreign country.

4
October 2009                                                                          Federal Election Commission RECORD



Advisory Opinions                         equate notice to the public as to the    organization, and Club for Growth
(continued from page 4)                   identity and sponsorship of the SSF.     PAC (Club PAC) is the separate
                                              The Commission concludes that        segregated fund of the Club.
as its connected organization on its
                                          the proposal to abbreviate the name         The Club and Club PAC wish to
Statement of Organization (FEC
                                          of the SSF as “Daimler PAC” would        communicate with individual con-
Form 1). 2. U.S.C. §433b(2) and 11
                                          be sufficient to provide the public      tributors to the Specter Committee
CFR 102.2(a)(1)(ii).
                                          with adequate notice as to the iden-     to inform them of Senator Specter’s
    Administrative Costs. The Com-
                                          tity and sponsorship of the SSF and      decision to run as a Democrat in the
mission considered the question of
                                          is therefore permissible. Although       2010 election. The Club and Club
whether the payment of administra-
                                          the SSF will be connected to Ster-       PAC propose to compile a list of
tive costs of the proposed SSF could
                                          ling Corp. and funded by MBUSA           contributors from information con-
come from MBUSA LLC’s EAPP
                                          LLC, it will operate on behalf of all    tained in campaign finance reports
cost center, but could not approve a
                                          the Daimler-related companies.           that the Specter Committee has filed
response by the required four votes.
                                              The SSF must use both the ab-        with the Commission. The com-
    Name of SSF. The Act and Com-
                                          breviation and the full name on the      munication would notify contribu-
mission regulations require the name
                                          Statement of Organization (FEC           tors about Senator Specter’s stated
of an SSF to include the full name of
                                          Form 1), on all reports filed with the   policy of providing refunds upon
its connected organization. 2 U.S.C.
                                          Commission and on all disclaimer         request to those who contributed to
§432(e)(5) and 11 CFR 102.14(c).
                                          notices required by Commission           his campaign while he was running
An SSF established by a subsidiary
                                          regulations. In addition, Sterling       as a Republican. Club PAC indicated
may, but need not, include in its
                                          Corp. will be disclosed as the SSF’s     that the communication would not
name the name of the subsidiary’s
                                          connected organization on the            contain any express advocacy or
parent or another subsidiary of its
                                          Statement of Organization with the       mention any other candidate.
parent. In limited circumstances,
                                          Commission.                                 Either the Club or Club PAC
however, the Commission has al-
                                              Date Issued: August 28, 2009;        would send a one-time letter to
lowed an SSF to be named after an
                                              Length: 7 pages.                     Specter’s contributors or, alterna-
LLC that is wholly owned a cor-
                                                            — Myles Martin         tively, for those contributors with
poration that serves as the SSF’s
                                                                                   published phone numbers, the Club
connected organization. See AOs
                                                                                   or Club PAC may make one tele-
2004-42, 2003-28, and 1997-13.
    In this proposal, Sterling Corp.
                                          AO 2009-19                               phone call.
will serve as the connected organiza-     PAC May Use Contributor                     The communications would not
                                          Information for Limited                  contain any solicitation of any kind
tion for the proposed SSF and the
                                          Communication                            for the Club, Club PAC, any candi-
funding for the administration of and
                                                                                   date	or	any	other	entity.	No	fol-
solicitation for the SSF will come           A separate segregated fund may
                                                                                   low up mailings or telephone calls
from MBUSA LLC. The SSF may               use contributor information obtained
                                                                                   would be made unless, during the
not be named after MBUSA LLC,             from reports filed with the Federal
                                                                                   initial telephone call, the contributor
though, because MBUSA LLC is              Election Commission to notify con-
                                                                                   requests further information from
not in virtually the same position        tributors to Senator Arlen Specter’s
                                                                                   the Club or Club PAC on how to re-
as a corporate subsidiary as was the      2010 Senate reelection campaign
                                                                                   quest a refund. The communications
case with other SSFs named after          that the Senator has switched his
                                                                                   would be made independently of any
LLCs. Accordingly, the name of the        party affiliation and has publicly
                                                                                   candidate or political party.
SSF must include Sterling Corp. and       offered to refund contributions upon
                                                                                      The Club and Club PAC would
may, but need not, include the names      request.
                                                                                   not use the list for any purpose other
of	Sterling	Corp.’s	parent—DNAC—
                                          Background                               than the communication proposed
and a subsidiary of its parent, includ-
                                             On April 28, 2009, Pennsylvania       in the advisory opinion request,
ing MBUSA.
                                          Senator Arlen Specter announced          and would not retain the list for
    Commission regulations permit
                                          he had decided to switch his party       any other purpose. The Club and
an SSF to use a “clearly recognized
                                          affiliation and to run as a Democrat     Club PAC would not put any of the
abbreviation or acronym by which
                                          for the 2010 Senate election. Senator    contact information obtained from
the connected organization is com-
                                          Specter stated that he would return      the Specter Committee’s Commis-
monly known.” 11 CFR 102.14(c).
                                          campaign contributions made during       sion filings into either the Club or
In determining whether specific
                                          the 2010 election cycle upon request.    the Club PAC’s general membership
terms or names meet this require-
ment, the Commission has examined            Club for Growth (Club) is an                          (continued on page 6)
whether they give the public ad-          incorporated nonprofit membership

                                                                                                                           5
Federal Election Commission RECORD                                                                            October 2009



Advisory Opinions                          tee was not Phil Gramm’s authorized      AO 2009-20
(continued from page 5)                    committee.                               Federal Officeholder May
                                              In these AOs, the Commission          Use Campaign Funds to
database. The Club and Club PAC            pointed out that the purpose of the
would not make the list of contribu-                                                Pay Certain Legal Fees of
                                           sale and use prohibition is to prevent   Current and Former Staff
tors to the Specter Committee avail-       contributor information from being
able to any other entity.                  used for commercial purposes or for
                                                                                    Members
                                           making solicitations. The prohibi-          A federal officeholder may use
Analysis                                                                            campaign funds to pay legal fees and
    Under the Federal Election Cam-        tion does not, “foreclose the use
                                           of this information for other, albeit    expenses incurred by current and
paign Act (the Act) and Commission                                                  former staff members in connection
regulations, political committees          political, purposes, such as correct-
                                           ing contributor misperceptions.” (AO     with a federal investigation of alleg-
are required to file reports with the                                               edly improper campaign contribu-
Commission identifying the names           1984-02.)
                                              In this advisory opinion the Com-     tions because the fees would not
and mailing addresses of their con-                                                 exist irrespective of the officehold-
tributors. 2 U.S.C. §§434(b)(2)(A)         mission noted that the Club and
                                           Club PAC will not solicit contribu-      er’s campaign or duties as a federal
and (b)(3)(A); 11 CFR 104.8(a). The                                                 officeholder. However, the use of
Act provides that the Commission           tions for any reason and will not use
                                           the contributor information for any      campaign funds to pay for any such
shall make reports and statements                                                   employee’s representation in legal
filed with it available for public         commercial purpose. The Club and
                                           Club PAC will use contributor in-        proceedings regarding allegations
inspection and copying within 48                                                    that are not related to the Congress-
hours of receipt. Any information          formation obtained from the Specter
                                           Committee’s disclosure reports only      man’s campaign activity or duties as
copied from such reports or state-                                                  a federal officeholder would consti-
ments, however, “may not be sold or        for the limited purpose of notifying
                                           contributors that Senator Specter has    tute an impermissible personal use
used by any person for the purpose                                                  of campaign funds.
of soliciting contributions or for         switched parties and of his refund
commercial purposes,” other than           policy. Each donor will only be
                                                                                    Background
using the name and address of a po-        contacted once. Also, the Club and
                                                                                       Representative Visclosky is the
litical committee to solicit contribu-     Club PAC indicated that they will
                                                                                    U.S. Representative from the First
tions from that political committee.       safeguard the contributor informa-
                                                                                    District of Indiana. Visclosky for
11 CFR 104.15(a). Under Commis-            tion obtained from the reports to
                                                                                    Congress (the Committee) is Rep.
sion regulations, “soliciting contri-      avoid using the contributor informa-
                                                                                    Visclosky’s principal campaign com-
butions” includes soliciting any type      tion for any purpose not presented in
                                                                                    mittee.
of contribution or donation, such as       the advisory opinion request.
                                                                                       According to provided media
political or charitable contributions.        Therefore, in this limited situa-
                                                                                    reports, the FBI and federal pros-
11 CFR 104.15(b).                          tion, the Commission concludes that
                                                                                    ecutors are investigating whether a
    In AO 1981-05, the Commission          the use of contributor information
                                                                                    lobbying firm, PMA Group, made
concluded that a candidate could use       obtained from the Specter Com-
                                                                                    improper political contributions to
information obtained from disclo-          mittee’s disclosure reports does not
                                                                                    Rep. Visclosky and other members
sure reports to mail letters to contrib-   violate the solicitation and com-
                                                                                    of the U.S. House of Representa-
utors to his opponent’s campaign to        mercial use prohibition at 2 U.S.C.
                                                                                    tives. Although many of the details
correct allegedly defamatory charges       §438(a)(4).
                                                                                    of the federal investigation are not
made by his opponent. In Advisory             Date Issued: August 28, 2009;
                                                                                    public at this time, media reports
Opinion 1984-02, a nonconnected               Length: 5 pages.
                                                                                    indicate that the investigation centers
political committee calling itself                           —Isaac J. Baker
                                                                                    on more than $500,000 in alleged
“Americans for Phil Gramm in 84”                                                    campaign contributions from PMA
solicited contributions without the                                                 Group and its clients to three Con-
permission of Phil Gramm or his au-                                                 gressman, including Rep. Visclosky.
thorized campaign committee. The                                                    The media reports also indicate that
Commission concluded that Repre-                                                    Rep. Visclosky allegedly improperly
sentative Gramm and his authorized                                                  earmarked appropriations for clients
campaign committee could use                                                        of PMA. As part of the ongoing
contributor information contained in                                                federal investigation, Rep. Visclo-
Americans for Phil Gramm in 84’s                                                    sky’s former Chief of Staff has been
disclosure reports to inform contrib-
utors that the nonconnected commit-                                                                 (continued on page 7)


6
October 2009                                                                            Federal Election Commission RECORD



Advisory Opinions                        a candidate.1 Therefore, the Com-           AO 2009-21
(continued from page 6)                  mission concluded that the current          FECA Preempts West
                                         and former staff members’ legal             Virginia Law Affecting
served with a grand jury subpoena to
                                         fees and expenses associated with           Federal Candidates
produce documents.
                                         the federal investigation would not
                                         exist irrespective of Rep. Visclo-             The Federal Election Campaign
Analysis                                                                             Act (the Act), preempts a West Vir-
   The Federal Election Campaign         sky’s campaign or duties as a federal
                                         officeholder. The Committee may             ginia law insofar as it limits polling
Act (the Act) identifies six catego-                                                 expenditures by federal candidates
ries of permissible uses of campaign     not, however, use campaign funds to
                                         pay legal fees or expenses regarding        and their principal campaign com-
funds, including otherwise autho-                                                    mittees.
rized expenditures in connection         allegations unrelated to Rep. Visclo-
with the candidate’s campaign for        sky’s campaign or duties as a federal       Background
federal office, ordinary and neces-      officeholder.                                  West Virginia law allows politi-
sary expenses incurred in connection        The Commission noted that,               cal committees to pay for a lim-
with the duties of the individual as     because many of the details of the          ited number of election expenses.
a holder of federal office and any       federal investigation are not public at     Allowed expenses include public
other lawful purpose not prohibited      this time, it is possible that portions     opinion polls, which are prohibited
by the Act. 2 U.S.C. §§439a(a), (b)      of the investigation could involve          from being “deceptively designed”
and 11 CFR 113.2(a)-(e). The Act         allegations not related to Rep.             or conducted in a manner that would
prohibits “personal use” of cam-         Visclosky’s campaign or his duties          influence anyone polled to vote for
paign contributions by any person.       as a federal officeholder. The use          or against “any candidate, group of
2 U.S.C. §439a(b)(1) and 11 CFR          of campaign funds to pay any such           candidates, proposition or other mat-
113.2(e). The Act specifies that con-    legal fees would be impermissible.          ter to be voted on by the public at
version to personal use occurs when      See AOs 2009-10 and 2005-11. In             any election.” Furthermore, Chapter
a contribution or amount is used to      accordance with the Act and Com-            3 of the West Virginia Code, con-
“fulfill any commitment, obligation,     mission regulations, the Committee          cerning elections, explicitly applies
or expense of a person that would        must maintain appropriate documen-          to “every general, primary, and spe-
exist irrespective of the candidate’s    tation of any disbursements made to         cial election in which candidates are
election campaign or individual’s        pay legal expenses incurred in con-         nominated or elected” and defines
duties as a holder of Federal office.”   nection with the federal investigation      “any election” or “all elections” to
2 U.S.C. §439a(b)(2); see also 11        or other legal proceedings. 11 CFR          include elections for federal offices.
CFR 113.1(g).                            102.9(b) and 104.11. The Commit-               In response to a complaint from a
   The Commission determined that        tee must report all funds disbursed         citizen alleging that Ms. Anne Barth,
the Committee may use campaign           for such legal expenses as operating        a candidate for the 2nd Congressio-
funds to pay legal fees and expenses     expenditures, noting the payee’s full       nal District of West Virginia, and
incurred by Rep. Visclosky’s current     name, address and a detailed de-            Anne Barth for Congress (the Barth
and former staff members in con-         scription of the purpose of the pay-        Committee), her principal campaign
nection with a federal investigation     ment. 11 CFR 104.3(b)(2) and (4).           committee, conducted a poll in
into the alleged provision of illegal       Date Issued: August 28, 2009;            violation of West Virginia Code 3-8-
campaign contributions by PMA               Length: 5 pages                          9(a)(10), the West Virginia Secretary
Group and its clients to the Commit-               —Katherine Wurzbach               of State sought information about
tee, and Rep. Visclosky’s allegedly                                                  the poll from both the Barth Com-
improper earmarking of appropria-                                                    mittee and the polling company.
tions for clients of PMA, as well                                                    Counsel for the Barth Committee
as any other legal proceedings that                                                  responded that federal law preempts
involve the same allegations. Rep.       1
                                           In a previous Advisory Opinion, the       West Virginia law on this subject,
Visclosky’s current and former staff     Commission concluded that the allega-       citing AO 1995-41. The Secretary of
members are involved in the federal      tions relate to Rep. Visclosky’s cam-       State maintained that state laws held
investigation because of their current   paign and duties as a federal office-       jurisdiction in the matter and sought
and former employment relation-          holder because Rep. Visclosky allegedly     an advisory opinion to that effect,
ships with Rep. Visclosky in his         received the contributions in question      asking if the West Virginia statute
capacity as a U.S. Congressman and       as part of his campaign and his alleged     regulating spending for election
                                         actions regarding the congressional ap-
                                         propriations process are directly related
                                         to his duties as a federal officeholder.                    (continued on page 8)
                                         See AO 2009-10.

                                                                                                                              7
Federal Election Commission RECORD                                                                           October 2009



Advisory Opinions                           In this case, the West Virginia       lations, the West Virginia statute is
(continued from page 7)                  statute at issue limits expenditures     preempted where federal candidates
                                         by federal political committees          and their principal campaign com-
expenses by political committees         (including candidate committees),        mittees—such as Ms. Barth and the
is preempted by the Act or Com-          which is one of the areas specifically   Barth Committee—are concerned.
mission regulations with respect to      regulated by the Act and Commis-            Date Issued: August 28, 2009;
federal candidates.                      sion regulations. Furthermore,              Length: 5 pages.
                                         the West Virginia statute does not                 —Christopher Berg
Analysis                                 address any of the areas that Con-
   The Act and Commission regu-          gress intended to leave exclusively
lations preempt West Virginia law        to the jurisdiction of the states (the   Advisory Opinion Requests
insofar as it purports to regulate       manner of qualifying as a candidate
spending by federal candidates and       or political organization, date and      AOR 2009-26
their principal campaign commit-         place of election, voter registration,      State officeholder’s use of state
tees. The Act states that its provi-     voting fraud, ballot theft, candidate    campaign and officeholder funds
sions and rules “supersede and           financial disclosure, or funds used      while a candidate for federal of-
preempt any provision of State law       to purchase or build a State or local    fice (State Representative Elizabeth
with respect to election to Federal      party office building).                  Coulson, September 8, 2009)
office.” 2 U.S.C. §453; see also 11         Accordingly, the West Virginia
CFR 108.7(a). The legislative his-       statute is expressly preempted by
tory indicates that Congress intended    federal law with respect to federal
“to make certain that the Federal law    elections. 2 U.S.C. §453; 11 CFR
is construed to occupy the field with    108.7(b)(3).
respect to elections to Federal office      Commission regulations govern
and that Federal law will be the sole    permissible and prohibited ex-             Back Issues of the
authority under which such elections     penditures by federal candidates,          Record Available on
will be regulated.” HR Rep. No 93-       including expenditures for polling         the Internet
1239, 93d Cong, 2d Sess. 10 (1974).      expenses. 11 CFR 100.131-155,
   Moreover, in promulgating             106.2, 106.4, 113.2, 116.2, 116.11           This issue of the Record and all
regulations at 11 CFR 108.7, which       and 116.12. With respect to this           other issues of the Record starting
address Commission regulations’          request, the West Virginia statute, if     with January 1996 are available
effect on state law, the Commission      applied to federal candidates, would       on the FEC web site as PDF files.
stated that federal law supersedes       impede those candidates’ ability to        Visit the FEC web site at http://
state law with respect to the orga-      make payment of polling expenses           www.fec.gov/pages/record.shtml
nization and registration of politi-     governed by the Act and Commis-            to find monthly Record issues.
cal committees supporting federal        sion regulations. Under the Act’s            The web site also provides
candidates, disclosure of receipts       preemption clause, only federal law        copies of the Annual Record Index
and expenditures by federal can-         could limit the ability of a federal       for each completed year of the
didates and political committees         candidate to make expenditures for         Record, dating back to 1996. The
and the limitations on contributions     polling. 2 U.S.C. §453.                    Annual Record Index list Record
and expenditures regarding federal          Similarly, in AO 2000-23, in            articles for each year by topic,
candidates and political committees.     which the Commission concluded             type of Commission action and, in
See Explanation and Justification of     that	because	a	New	York	statute	           the case of advisory opinions, the
the Disclosure Regulations, House        limited state party expenditures           names of individuals requesting
Document No. 95-44, at 51 (1977).        regarding federal candidates, rather       Commission action.
In contrast, the manner of qualifying    than “those areas defined as interests       You	will	need	Adobe®	Acro-
as a candidate or political organiza-    of	the	State,”	the	New	York	law	was	       bat®	Reader	software	to	view	the	
tion, the date and place of election,    preempted by the Act and Commis-           publication. The FEC’s web site
voter registration, voting fraud,        sion regulations.                          has a link that will take you to
ballot theft, candidate financial           Therefore, the Commission con-          Adobe’s web site, where you can
disclosure, or funds used to purchase    cludes that, because West Virginia.        download the latest version of the
or build a state or local party office   Code 3-8-9 limits expenditures             software for free.
building are left exclusively to the     by candidates and their principal
jurisdiction of the states. See H.R.     campaigns that are otherwise lawful
Rep. No. 93-1438 at 69, 100-101 and      under the Act and Commission regu-
11 CFR 108.7(c).

8
October 2009                                                                          Federal Election Commission RECORD



                                          House Candidates
   Statistics                                 Campaign finance reports filed          800 Line
                                          by House candidates for the period
House and Senate Campaign                 January 1 through June 30, 2009,
Fundraising Through June                  show 416 House incumbents with           Volunteer Activity
                                          combined receipts of $132 mil-              This article answers common
   Candidates for the U.S. Senate         lion, a $7.6 million decrease from       questions from individuals wishing
and U.S. House in 2010 reported           the same period in 2007. Individual      to participate in volunteer activity
raising a total of $250.3 million from    contributions accounted for $63.6        related to federal elections. The in-
January 1 through June 30, 2009,          million of House incumbents’ total       formation applies to both volunteers
according to disclosure reports filed     receipts while contributions from        for federal candidate campaigns and
with the Commission. Candidates           PACs amounted to $64.2 million, in       volunteers for federal political party
seeking election to 36 U.S. Senate        the first half of 2009. From Janu-       committees. The Federal Election
seats reported raising $93.2 million      ary 1 through June 30 of this year,      Campaign Act (the Act) and Com-
during the first six months of 2009.      250 incumbent Democrats raised           mission regulations contain certain
Democratic Senate candidates raised       $85.9 million, while 166 incumbent       provisions related to volunteer activ-
$54.1 million, while Republicans          Republicans raised $46.1 million.        ity connected to federal elections.
raised $39.1 million. Candidates          Democratic members reported a            In general, volunteer activity by
for the U.S. House reported raising       combined $147 million cash-on-           individuals is not considered to be a
$157.1 million in the first six months    hand total at the end of the reporting   contribution or expenditure and is,
of this year, with Democrats raising      period, and Republicans reported         therefore, not required to be reported
$97.5 million and Republicans rais-       $78.2 million.                           by the committee. However, certain
ing $59.6 million.                            The median receipts for Demo-        volunteer activities are subject to
Senate Candidates                         cratic House incumbents were             limits which will be discussed fur-
   The $93.2 million that 70 indi-        $273,576, up from $268,072 in the        ther in this article.
vidual Senate campaign committees         first six months of 2007. For Repub-
                                          lican members, the median receipts       Can I volunteer for a campaign
raised in 2009 was the highest total
                                          this year were $226,824, down from       committee if I am not a U.S.
ever reported for the first six months
                                          $242,012 in 2007. An equal number        citizen?
in a non-election year, surpassing the
                                          of candidates had receipts above and        Even though a foreign national
previous high of $84.8 million raised
                                          below these median values.               cannot make campaign contributions
in the first half of 2007. In 2003, the
                                              Receipts for the 38 Democratic       or expenditures (including advances
last time this same group of Senate
                                          House freshmen totaled $18.6             of personal funds), he or she can
seats was up for election, 63 can-
                                          million, while the 25 Republican         serve as an uncompensated volunteer
didates raised $75.6 million during
                                          freshmen reported receipts of $8.5       for a campaign or political party.
the first six months of the cycle.
                                          million. Democratic freshmen had         However, the individual may not
However, there are two additional
                                          median receipts of $509,573, while       serve in a decision-making capacity
open seats this election cycle due to
                                          the median for Republican freshmen       within the committee. For example,
the vacancies created by the Senate
                                          was $371,052.                            a foreign national is allowed to at-
resignations of Vice President Joe
                                              Non-incumbents	raised	a	total	of	    tend campaign strategy meetings and
Biden and Secretary of State Hillary
                                          $25.1 million for House races during     events, but may not be involved in
Clinton.
                                          the first six months of 2009, with 94    the management of the committee.
   From January 1 through June 30,
                                          Democrats raising $11.6 million and      AOs 2007-22, 2004-26 and 1987-25.
2009, contributions from individuals
accounted for $65 million, or 70 per-     146 Republicans raising $13.5 mil-
                                                                                   Does volunteering my personal
cent of the total Senate candidates       lion. In the same period in 2007, 135
                                                                                   services to a campaign count as a
raised. Political action committee        Democrats raised $16.3 million and
                                                                                   contribution to the campaign?
(PAC) contributions to Senate candi-      94 Republicans raised $8.3 million.
                                                                                      An individual may volunteer his
dates totaled $20.1 million, repre-           For additional information, the
                                                                                   or her personal services to a cam-
senting 22 percent of the campaigns’      full text of the Commission’s press
                                                                                   paign without making a contribution
receipts.                                 release is available at http://www.
                                                                                   as long as the individual is not com-
   Senate candidates ended the first      fec.gov/press/press2009/20090914_
                                                                                   pensated by anyone else. 11 CFR
six months of 2009 with $150.8            6MnthCandStats.shtml.
                                                                                   100.74. For example, if an individual
million cash-on-hand and debts of                   —Myles Martin
                                                                                   helps organize a voter drive or offers
$2.9 million, some from previous
elections.                                                                                         (continued on page 10)

                                                                                                                        9
Federal Election Commission RECORD                                                                             October 2009



800 Line                                   I am an individual with a legal
(continued from page 9)                    education, but not employed by            PACronyms, Other
                                           a firm. Do the restrictions above         PAC Publications
his or her particular skills to a cam-     apply to me as well?                      Available
paign, neither of those activities will       An individual can personally vol-         The Commission annually
result in a contribution, as long as       unteer his or her legal and account-       publishes an alphabetical listing
the individual is not compensated. If      ing services without compensation,         of acronyms, abbreviations and
the individual is compensated for his      without the restrictions listed above.     common names of political action
or her services, the activity is no lon-   11 CFR 100.54.                             committees (PACs).
ger considered volunteer activity and                                                   For each PAC listed, the
the payments, if made by someone           Am I allowed to hold a campaign-           index provides the full name
other than the campaign itself, result     related gathering at my house?             of the PAC, its city, state, FEC
in an in-kind contribution from that          Yes,	an	individual	can	use	his	or	      identification number and, if not
person, which must be reported by          her home or the reception room of          identifiable from the full name, its
the campaign. 11 CFR 100.54.               his or her apartment complex for           connected, sponsoring or affiliated
                                           activities benefiting a candidate or       organization.
I am a partner at a law firm. Can          political party committee without            This index is helpful in
my firm offer its legal services to a      making a contribution to the com-          identifying PACs that are not
campaign?                                  mittee. In addition, volunteers may        readily identified in their reports
   An entity (e.g. a committee, cor-       use a church or community room             and statements on file with the
poration or partnership) may provide       for campaign-related activities as         FEC.
a campaign with free legal and ac-         long as the facility is regularly used       To order a free copy of
counting services as long as:              for noncommercial purposes by              PACronyms, call the FEC’s
•	The	services	are	provided	for	the	       members of the community, without          Disclosure Division at 800/424-
  sole purpose of helping in compli-       regard to political affiliation. Any       9530 or 202/694-1120.
  ance with the Act;                       nominal fee charged for the use of           PACronyms is also available
•	The	entity	paying	for	the	services	      the room will not count as an in-kind      on diskette for $1 and can be
  is the regular employer of the indi-     contribution to the committee and is       accessed free on the FEC web site
  vidual providing the services;           not reportable. 11 CFR 100.75 and          at www.fec.gov.
•	The	employer	does	not	hire	ad-           100.76.                                      Other PAC indexes, described
  ditional employees in place of the                                                  below, may be ordered from the
                                           I would like to send out invitations
  volunteer employee; and                                                             Disclosure Division. Prepayment
                                           and provide food and beverages
•	The	committee	reports	the	value	                                                    is required.
                                           at the campaign-related activity.
  of the service, as well as the name                                                •	 An	alphabetical	list	of	all	
                                           Will those expenses count as
  of each person who performed the                                                       registered PACs showing each
                                           contributions to the committee?
  service and the dates of services.                                                     PAC’s identification number,
                                               The costs for invitations or food
  11 CFR 100.86, 100.146 and                                                             address, treasurer and connected
                                           and beverages served at the event
  114.1(a)(2); AO 2006-22.                                                               organization ($13.25).
                                           are not considered contributions if
                                                                                     •	 A	list	of	registered	PACs	
   An entity may also provide a            they remain under certain limits. If
                                                                                         arranged by state providing
political party committee the same         the activity is benefiting a candidate,
                                                                                         the same information as above
free legal and accounting services         the limit is $1,000 per candidate, per
                                                                                         ($13.25).
applying the guidelines listed above       election. If the activity is benefit-
                                                                                     •	 An	alphabetical	list	of	
except for the first requirement:          ing a political party committee, the
                                                                                         organizations sponsoring PACs
   1) Here, the service cannot further     limit is $2,000 per year on behalf of
                                                                                         showing the name of the PAC
the election of a specific federal         all committees of the same political
                                                                                         and its identification number
candidate.                                 party. Therefore, if a husband and
                                                                                         ($7.50).
   In addition, the free legal and         wife host a benefit for a candidate
                                                                                        The Disclosure Division can
accounting services exemption              at their home they would each be
                                                                                      also conduct database research to
does not mean the entity can donate        allowed the $1,000 exemption and
                                                                                      locate federal political committees
equipment along with the service.          together would be able to spend
                                                                                      when only part of the committee
AO 1989-13, 1980-137.                      up to $2,000 on invitations or food
                                                                                      name is known. Call the telephone
                                           and beverages without making a
                                                                                      numbers above for assistance or
                                           contribution. However, if the hosts
                                                                                      visit the Public Records Office in
                                                           (continued on page 11)     Washington	at	999	E	St.,	NW.


10
October 2009                                                                          Federal Election Commission RECORD



800 Line                                  long as the individual complies with     regulations regarding coordinated
(continued from page 10)                  the employer’s rules for personal use    communications and disclaimer
                                          of computers and Internet access.        requirements would also apply. 11
go over the limits, the excess will       This kind of activity can include        CFR 109.21, 109.37 and 110.11(a).
count as an in-kind contribution to       anything from forwarding political
the committee and is reportable. 11       emails to signing up to work at a        I am a campaign volunteer who
CFR 100.77.                               candidate fundraiser. The individual     pays for my own travel expenses
   These exemptions do not apply to       must complete the normal amount of       to campaign-related events.
individuals co-hosting the activity       work for which the individual is paid    Does that constitute an in-kind
in another individual’s home. Any         and the activity must not increase       contribution to the campaign?
expenses paid by the co-host are          the overhead or operating costs of          Not	necessarily.	An	individual	
considered to be contributions and        the organization. In addition, the In-   may pay for his or her own travel
must be reported. AO 1980-63.             ternet activity cannot be coerced or     expenses related to candidate or
                                          conditioned upon being used for par-     party activities. An individual may
I work in a corporate office.                                                      spend up to $1,000 per candidate,
Can I conduct campaign-related            ticular candidates. 11 CFR 100.94,
                                          114.9(a)(2)(ii) and (b)(2)(ii).          per election, and up to $2,000 on
volunteer work while at the office?                                                behalf of all political committees
   In general, if an individual pro-      If I create a website in support         of each political party in a calendar
vides services to a campaign during       of a federal candidate, does that        year for campaign-related travel.
paid working hours, the employer          count as a contribution to the           11 CFR 100.79. However, if the
is making a contribution. 11 CFR          candidate’s campaign?                    individual spends over those limits,
100.54. However, if you are an               An uncompensated individual or        the excess is reportable as an in-kind
employee, stockholder or member           group may engage in Internet activi-     contribution and counts against the
of a corporation or labor organiza-       ties for the purpose of influencing
tion you may make limited use of          federal elections without having the
the organization’s facilities during      activity count as a contribution or                       (continued on page 12)
paid working hours. For example, an       expenditure. This exemption applies
employee could use the office phone       to those acting with or without the
to make calls pertaining to political
volunteer work, but the activity must
                                          knowledge or consent of a campaign          FEC Accepts Credit
not interfere with the employee’s
                                          or political party committee. 11 CFR        Cards
                                          100.94 and 100.155. The exempted              The Federal Election
work or the organization’s normal         Internet activities include, but are        Commission now accepts
activity.                                 not limited to, sending or forwarding       American Express, Diners Club
   In order for the activity not to       emails, providing a hyperlink to a          and Discover Cards in addition
be counted as a contribution, the         website, posting comments to a blog,        to Via and MasterCard. While
Commission suggests limiting the          creating, maintaining or hosting a          most FEC materials are available
activity to “incidental use” of the       website and paying a nominal fee            free of charge, some campaign
corporate facilities. Incidental use      for the use of the website. 11 CFR          finance reports and statements,
is considered to be one hour a week       100.94(b). These exemptions apply           statistical compilations, indexes
or four hours a month. 11 CFR             regardless of whether the individual        and directories require payment.
114.9(a)(1) and (b)(1). If the activity   owns the computer.                            Walk-in visitors and those
exceeds incidental use or the indi-
                                                                                      placing requests by telephone may
vidual uses the organization’s equip-     Does the exemption still apply if           use any of the above-listed credit
ment to produce campaign materials,       I pay to place a political ad on            cards, cash or checks. Individuals
the individual must reimburse the         someone else’s web site?                    and organizations may also place
organization within a commercially           The Internet activity exemption          funds on deposit with the office
reasonable time. The reimbursement        does not apply to paid political ads.       to purchase these items. Since pre-
is considered a contribution from the     Internet communications placed on           payment is required, using a credit
individual to the political commit-       another’s website for a fee constitute      card or funds placed on deposit
tee and must be reported. 11 CFR          “general public political advertis-         can speed the process and delivery
114.9(a)(2), (b)(2) and (c).              ing” and are thus viewed as “public         of orders. For further information,
                                          communications” under the law. 11           contact the Public Records Office
Can I conduct volunteer Internet          CFR 100.26. Therefore, paying to
activity from my corporate office?                                                    at 800/424-9530 or 202/694-1120.
                                          place a communication on another’s
   Yes,	an	individual	can	conduct	        website could result in a contribution
volunteer Internet activity at work as    or expenditure under the Act. Other

                                                                                                                            11
Federal Election Commission RECORD                                                                         October 2009



800 Line                                  or $2,000 on behalf of all political    ees are responsible for making their
(continued from page 11)                  party committees of each political      own hotel reservations. To make
                                          party in a calendar year, then the      your hotel reservations call 1-888-
individual’s contribution limit.          discount is not considered a contri-    627-7024 and identify yourself
   In addition to the $1,000/$2,000       bution. If the discount exceeds those   as attending the Federal Election
travel expenses exemption, a cam-         limits then the excess is considered    Commission conference or visit the
paign volunteer may spend unlim-          to be an in-kind contribution and       hotel web site (http://www.star-
ited amounts of personal funds for        must be reported. This is a problem     woodmeeting.com/StarGroupsWeb/
his or her meals and lodging without      if the vendor is incorporated because   res?id=0906250769&key=E3D1E).
making a contribution, as long as         it would result in an impermis-         The FEC recommends waiting to
the expenses incurred are inciden-        sible contribution. Therefore, if the   make hotel and air reservations until
tal to volunteer activities. 11 CFR       vendor is incorporated it may not       you have received confirmation of
100.79(b).                                exceed the $1,000/$2,000 discount       your conference registration from
What if the campaign offers               limit. 11 CFR 100.78 and 114.1(a)       Sylvester Management Corporation.
to reimburse me for my travel             (2)(v).                                    Registration Information. The
expenses beyond the $1,000/$2,000                                                 registration fee for this conference
                                          Additional Information                  is $550, which covers the cost of the
limit?                                       For additional information on
   A committee is permitted to reim-                                              conference, materials and meals. A
                                          volunteer activity, contact the FEC’s   $50 late fee will be added to regis-
burse a volunteer’s travel expenses       Information Division at 1-800-424-
and, as long as the reimbursement                                                 trations received after 5 p.m. EDT,
                                          9530 or 202-694-1100.                   September 25, 2009. Complete
takes place within a certain time                 —Katherine Wurzbach
frame, no contribution will result.                                               registration information is available
The following time frames apply:                                                  online at http://www.fec.gov/info/
                                                                                  conferences/2009/sanfrancisco09.
•	If	the	travel	expense	is	paid	for	by	                                           shtml.
  cash or personal check, the com-           Outreach
  mittee must reimburse the individ-                                              FEC Conference Questions
  ual within 30 days of the expense                                                  Please direct all questions about
  being incurred.                         San Francisco Regional                  conference registration and fees to
•	If	the	travel	expense	is	paid	for	by	   Conference for Campaigns,               Sylvester Management Corporation
  credit, the committee must reim-        Party Committees and                    (Phone:1-800/246-7277; e-mail:
  burse the individual within 60 days     Corporate/Labor/Trade                   rosalyn@sylvestermanagement.
  of the closing date on the credit       PACs                                    com). For questions about the con-
  card billing statement where the                                                ferences and workshops in 2009, call
                                             The Commission will hold a
  charge first appears.                                                           the FEC’s Information Division at
                                          regional conference in San Fran-
                                                                                  1-800/424-1100, or send an e-mail
   Outside of these time frames, the      cisco, California, on October 28-29,
                                                                                  to Conferences@fec.gov.
excess spent by the individual is         2009. Commissioners and staff
                                                                                                    —Dorothy Yeager
counted as an in-kind contribution to     will conduct a variety of technical
the committee. 11 CFR 116.5(b) and        workshops on the federal campaign
AO 2003-31.                               finance law. Workshops are designed
                                          for those seeking an introduction
If I own a bakery, am I allowed           to the basic provisions of the law
to provide my baked goods to a            as well as for those more experi-
campaign at a discount?                   enced in campaign finance law. For
    Yes,	a	vendor	(whether	or	not	it	     additional information, to view the
is incorporated) may sell food and        conference agenda or to register
beverages to a candidate’s campaign       for the conference, please visit the
or political committee at a discount.     conference web site at http://www.        FEC Conference
However, the amount charged must          fec.gov/info/conferences/2009/san-        Schedule for 2009
be at least equal to the vendor’s         francisco09.shtml.                        Conference for Campaigns,
costs of the items. If the value of          Hotel Information. The confer-         Party Committees and
the discount (difference between the      ence will be held at the Sheraton         Corporate/Labor/Trade PACs
normal charges and the amount paid        Fisherman’s Wharf Hotel, in the           October 28-29, 2009
by the campaign) does not exceed          heart of one of San Francisco’s most      Sheraton at Fisherman’s Wharf
$1,000 per candidate, per election,       celebrated neighborhoods. Attend-         San Francisco, CA


12
October 2009                                                                          Federal Election Commission RECORD



                                          2009-08: Use of campaign funds for       Enforcement
   Index                                    home security upgrades, 6:2            Agency procedure for notice to
                                          2009-10: Federal officeholder may         respondents in non-complaint gen-
                                            use campaign funds to pay certain       erated matters, 9:9
    The first number in each cita-          legal fees, 8:6
tion refers to the numeric month of       2009-12: Candidate may use cam-          Outreach
the 2009 Record issue in which the          paign funds for certain legal fees,    Conferences Scheduled for 2009,
article appeared. The second num-           8:7                                      1:15; 2:10; 3:14; 4:10; 5:7; 8:10;
ber, following the colon, indicates       2009-14: LLC affiliated with domes-        9:9; 10:12
the page number in that issue. For          tic subsidiary of a foreign corpora-   FEC to Hold Summer State Outreach
example, “1:4” means that the article       tion may administer an SSF, 10:1         Workshops, 6:7; 7:10
is in the January issue on page four.     2009-15: Candidate may accept            July Reporting Roundtable, 6:7; 7:9
                                            contributions for potential special    Roundtable	on	New	Lobbyist	Bun-
Advisory Opinions                                                                    dling Disclosure Rules, 3:14
Procedural rules for advisory opin-         election, 9:1
  ions, 8:4                               2009-16: Libertarian Party of Ohio
                                                                                   Party Activities
2008-14: Internet campaign TV sta-          qualifies as state party committee,
                                                                                   2009 Coordinated party expenditure
  tion’s activities qualify for press       9:4
                                                                                     limits for 2009, 3:7
  exemption, 1:7                          2009-18: Disaffiliation of SSFs after
                                                                                   Party financial activity for 2009, 9:8
2008-15:	Nonprofit	corporation	             restated agreement, 9:5
  may use general treasury funds to       2009-19: PAC may use contributor
                                                                                   Public Hearing
  broadcast radio advertisement, 1:8        information for limited communi-
                                                                                   Comment period extended, 2:1
2008-16: State party committee status       cation, 10:5
                                                                                   Commission holds public hearing on
  for Libertarian Party of Colorado,      2009-20: Federal officeholder may
                                                                                     agency practices and procedures,
  1:9                                       use campaign funds to pay certain
                                                                                     3:10
2008-17: PAC may pay expenses in-           legal fees of current and former
                                                                                   FEC to Hold Hearing on Website and
  curred by Senator’s co-author, 2:5        staff members, 10:6
                                                                                     Internet Communications Improve-
2008-18: Drug discount card program       2009-21: FECA preempts West Vir-
                                                                                     ments, 7:4
  would result in prohibited corpo-         ginia law affecting federal candi-
                                                                                   Hearing on Commission activities
  rate contributions, 2:6                   dates, 10:7
                                                                                     and procedures, 1:6
2008-19: Campaign committee
  employee may serve as Leadership        Audits                                   Regulations
  PAC’s treasurer, 2:8                    Commission Adopts Procedural             Civil penalties adjusted for inflation,
2008-20:	Non-profit	corporation	may	        Rules for Audit Hearings, 8:3            8:1
  reimburse its PAC for advertising                                                Commission announces disposition
  expenses, 3:5                           Commission                                 of petitions for rulemakings regard-
2008-21: Solicitation of members of       Message from the Chairman, 1:1;            ing candidate debates, 9:2
  corporation’s wholly owned mer-           2:1; 3:1; 7:1; 8:1                     Final Rules on reorganization of
  cantile exchanges for PAC contri-       New	Chairman	and	Vice	Chairman	            National	Voter	Registration	Act	
  butions, 4:5                              elected, 1:14                            regulations, 9:1
2008-22: Senator’s committee may                                                   Final Rules on repeal of Millionaires’
  repay certain personal loans with       Compliance                                 Amendment, 2:4
  campaign funds, 3:5                     MUR 5408: Rev. Al Sharpton,              Final Rules on reporting contribu-
2009-01: Renewal of Socialist              Sharpton	2004	and	National	Ac-            tions bundled by lobbyists, regis-
  Workers Party’s partial disclosure       tion	Network,	6:5                         trants and their PACs, 3:1
  exemption, 5:1
2009-02: Independent expenditures         Contribution Limits                      Reports
  by single member LLC, 5:5               Contribution limits for 2009-2010,       April Reporting Reminder, 4:1
2009-04: Recount and election con-          3:8                                    California Special Election Report-
  test funds, 5:6                                                                    ing: 10th District, 8:9
                                          Court Cases                              California Special Election Report-
2009-06: Federal officeholder’s state     ______ v. FEC
  campaign committee may raise                                                       ing: 32nd District, 4:4
                                          – Cao, 2:2                               FEC Form 3L Due May 20, 5:1
  nonfederal funds to retire debts, 6:1   – Public Citizen, Inc., 6:1
2009-07: Campaign’s use of candi-                                                  FEC Form 3L Due in July, 7:3
                                          –	Republican	National	Committee,	
  date-owned LLC’s boat, 8:5                1:1
                                                                                                    (continued on page 14)

                                                                                                                            13
Federal Election Commission RECORD                                                                October 2009



Index                                    800 Line
(continued from page 13)                 Best Practices for Committee Man-
                                           agement, 4:1
Illinois Special Election Reporting:
                                         Preparing for the next election, 7:5
   5th District, 2:8
                                         Retiring campaign debt, 1:10
July Reporting Reminder, 7:1
                                         Volunteer Activity, 10:9
New	York	Special	Election	Report-
   ing: 20th District, 3:9
October Reporting Reminder, 10:1
Reports Due in 2009, 1:2

Statistics
2008	Presidential	Receipts	Nearly	
  Double 2004 Totals, 7:8
Growth in PAC Financial Activity
  Slows, 6:6
House and Senate campaign
  fundraising through June, 10:9
Party financial activity for 2009, 9:8
Party Support for candidates increas-
  es in 2008 election cycle, 7:7
Semi-annual PAC Count, 4:8




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