IV,
MEMORANDUM OF UNDERSTANDING
WHEREAS, the National Republican Senatorial Committee
("NRSC") and the Democratic Senatorial Campaign Committee
("DSCC") wish to memorialize their mutual understanding of
political party activities as governed by the Federal Election Campaign Act ("Act");
WHEREAS, NRSC and DSCC wish to provide guidance to the
state parties of the Republican and Democratic parties
regarding certain political activities in accordance with
the Act, and specifically those activities which may be
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funded with transfers from national party committees;
THEREFORE, NRSC and DSCC hereby set forth applicable
legal principles in the form of this Memorandum of Understanding:
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Unlimited Party Transfers.
The Act authorizes
unlimited transfers "between and among political committees
which are national, state, district or local committees . . .
of the same political party."
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2.
2 U.S.C. S 441a(a)(4).
Restricted Uses of Transferred Funds.
Uses of
transfers between and among committees of the same political
party are subject to prohibitions and limitations as follows:
a.
Certain State and Local Party Activities.
Transfers from a national committee to a state or local committee of a party may not be used to fund
1)
the cost of campaign materials (such as
2.
Pins, bumper stickers, handbills, brochures, posters, party
tabloids and hand signs) used by such state and local
committees in connection with volunteer activities on behalf
of the party's federal nominees.
Id. SS 431(8)(B)(xi) &
(9)(B)(viii) .
2)
the costs of voter registration and get
out the vote activities conducted by the state or local
committee on behalf of the party's nominees for president and
vice president (including such activities which make an incidental reference to other nominees for federal office).
Id.
S§ 431(8)(B)(xii) & (9) (B) (ix) ; 11 C.F.R. S 100.8 (b) (18) .
b.
Limitations.
Other payments by state and
local party committees, including those made with transfers
from national party committees, are subject to a limitation
if the expenditures are made on behalf of a clearly identified
candidate and can be directly attributable to that candidate.
11 C.F.R. S 106.l(c).
Thus, expenditures for broadcast media,
billboards, direct mail or other communications to the
general public which are made on behalf of a clearly identified candidate and can be directly attributed to that candidate are subject to limitations.
(A), (a)(2)(A) & (d)(3).
See 2 U.S.C. SS 441a(a)(1)
These same principles apply to
voter registration and get out the vote activities unless any
reference to a federal candidate is part of a printed listing,
on a sample ballot, slate card, or similar listing of party
candidates which presents limited information about the
candidate.
Id. SS 431(8)(B)(v) & (9)(B)(iv).
3.
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3.
Permissible Uses of Transferred Funds.
Political
party committees undertake a variety of activities designed
"to build a strong party organization."
1975-2.
Advisory Opinion
Such activities may be financed without allocation
to any candidates under certain conditions as follows:
a.
Non-Allocable Party Activities.
Party com-
mittees may make expenditures for educational campaign
seminars, for training of campaign workers, and for registration or get out the vote drives; such expenditures need not
be allocated to candidates unless they are made on behalf of
a clearly identified candidate and can be directly attributed
to the candidate.
11 C.F.R. S 106.1(c)(2); Advisory Opinions
1978-10 & 1978-50.
Other expenses that need not be allocated
unless on behalf of a clearly identified candidate and
directly attributed to the candidate include day-to-day
expenses such as research, speech writing, general party
organization and travel, party publications, fundraising
expenses, staff at various party headquarters in the field and
national convention expenditures. Advisory Opinion 1975-87;
see also 11 C.F.R. S 106.1(c)(l).
b.
Allocation of Party Expenditures.
All
expenditures by state and local committees funded with
national party transfers must be allocated to the
parties' spending limitations of the Act if these expenditures are made on behalf of a clearly identified candidate
4.
and can be directly attributed to that candidate.
Expendi-
tures so made shall be counted against such candidates'
spending limitations in proportion to, and shall be reported
to reflect, the benefit of the expenditure reasonably
expected to be derived by the candidate.
Advisory Opinion 1978-46.
11 C.F.R. § 106.l(a);
Thus, where an expenditure for
direct mail, party publication or other communication to the
general public has or includes the purpose of directly
supporting a federal candidate, party committees must allocate
a portion or all of the expenditure to the candidate subject
to limitation.
The need for a party committee to allocate
any expenditures between or among candidates depends upon
the facts and circumstances of each case and upon the
purpose(s) and impact of the party's communication to the
public.
Advisory Opinion 1984-15.
A party committee's
fundraising or other appeals may include reference to the
party's candidate or candidates under facts and circumstances
that would not result in a contribution or expenditure subject to limitation.
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4.
Source of Funds.
The transfers discussed herein
pertain solely to the transfer of funds raised in accordance
with the Act.
Transfers for federal election related
activities, including transfers used for either allocable
federal candidate spending or non-allocable federal partybuilding, may include only funds raised subject to the Act.
11 C.F.R. SS 102.5 & 106.1(e); Advisory Opinion 1982-5.
5.
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5.
Reporting of Transfers.
All transfers by DSCC
or NRSC are subject to the disclosure requirements of the
Act.
The receipt of such transfers by a state or local
committee which is a political committee under the Act also
is subject to disclosure.
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6.
Advice to State Party Committees.
NRSC and DSCC
agree to provide this Memorandum of Understanding to the
state party committees of their respective parties in order
to educate such committees on the principles reflected herein
w. Baran
Attorney for Democratic
Senatorial Campaign Committee
October 2, 1984
Attorney for National Republican
Senatorial Committee