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tive effort to improve and simplify the act so that the Commission and the public will have a law that is fairer, simpler, and more easily understood.

The laudable goals of disclosure and limitations on the influence of money in Federal campaigns must be enhanced; however, we must also breathe new life into the political process by easing the bureaucratic obstacles for individuals and committees to participate in political campaigns. I believe the legislation we are considering today takes a positive step in that direction.

I want to emphasize my hope that these amendments retain their strong base of bipartisan support, and that the committee move expeditiously to have these amendments in place before the 1980 campaigns begin in earnest.

I would like to welcome the witnesses we have here today, and would ask Chairman Tiernan and Commissioner Friedersdorf to present their testimony. Do you have some documents you want to give me? Mr. TIERNAN. Yes, if I can pick them up.

The CHAIRMAN. Thank you. I would guess that bundle weighs about 5 or 6 pounds, wouldn't you?

Mr. TIERNAN. At least that. It's closer to 10.

The CHAIRMAN. Thank you. I appreciate the patience and time you took in rendering those replies. Let's now move on.

STATEMENT OF ROBERT O. TIERNAN, CHAIRMAN, FEDERAL ELECTION COMMISSION, ACCOMPANIED BY MAX FRIEDERSDORF, VICE CHAIRMAN, ORLANDO B. POTTER, STAFF DIRECTOR, AND WILLIAM C. OLDAKER, GENERAL COUNSEL

Mr. TIERNAN. Mr. Chairman and members of the committee, I am Robert Tiernan, Chairman of the Federal Election Commission. With me today is Vice Chairman Max Friedersdorf. Also, to my left, is Mr. Orlando B. Potter, who is the staff director of the Commission, and to my right is Mr. William Oldaker, our General Counsel.

We are here today to testify on the FEC's recommendations for amendments to the Federal Election Campaign Act of 1971, as amended [FECA].

I would like to thank the committee on behalf of the Commission for the opportunity to testify on improvements to the Federal Election Campaign Act. We look forward to working with the committee in improving the current campaign finance statute.

În 1976 Congress enacted the fourth major overhaul of campaign financing laws in slightly over 4 years. During implementation of the 1976 amendments, the FEC kept a continually updated list of apparent statutory omissions, inadequacies, and other problems. This list served as the basis for the legislative recommendations made by the Commission in its 1976 annual report. Several additional recommendations were made in the 1977 annual report.

The Federal Election Commission repeats its support for its 1976 and 1977 recommendations, and includes additional recommendations in its latest 1978 annual report, which was transmitted to the Congress this past March. The full text of our legislative recommendations, as they appear in the Federal Election Commission's 1978 annual report,

has been submitted to the committee as appendix A to this statement. The written statement highlights the major recommendations contained in the annual report. At this point I would request that my full statement and the appendix be included in the record while I briefly summarize our recommendations.

The CHAIRMAN. Without objection.

Mr. TIERNAN. Thank you.

[The prepared statement of the Federal Election Commission is as follows:]

STATEMENT OF THE

FEDERAL ELECTION COMMISSION

BEFORE THE

COMMITTEE ON RULES AND ADMINISTRATION
UNITED STATES SENATE

FECA AMENDMENTS

July 13, 1979

Mr. Chairman, Members of the Committee:

I am Robert Tiernan, Chairman of the Federal Election Commission (FEC). With me today is Max Friedersdorf, Vice Chairman of the FEC.

We are here today to testify on the FEC's recommendations for amendments to the Federal Election Campaign Act of 1971, as

amended (FECA).

First, I would like to thank the Committee on behalf of the FEC for the opportunity to testify on improvements to the FECA. We look forward to working with the Committee in improving the current campaign finance statute, and will be happy to assist the Committee in its efforts in any way possible.

In 1976, Congress enacted the fourth major overhaul of campaign financing laws in slightly over four years. During implementation of the 1976 Amendments, the FEC kept a continually updated list of apparent statutory omissions, inadequacies and other problems. This list served as the basis for the legislative recommendations made in the FEC's 1975 Annual Report. Several additional recommendations were made in the 1977 Annual Report.

The FEC reiterates its support for its 1976 and 1977 recommendations, and includes additional recommendations in its latest Annual Report, which was transmitted to the Congress this March. The full text of our legislative recommendations, as they appear in the FEC's

1978 Annual Report, has been submitted to the Committee as Appendix A to this statement. In the testimony today, I will only highlight

the major recommendations.

There are several areas which any current revisions of the FECA should address: 1) simplification of the disclosure process; 2) encouragement of grass roots activity and 3) clarification of the requirements of the FECA. Furthermore, the FEC advocates certain other specific changes in FEC procedures and duties, and in the judicial review provisions, to improve implementation of the FECA.

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The disclosure process should be simplified to the greatest extent possible. Simplification of the reporting requirements of

the FECA is consistent with full disclosure. In fact, simplification will encourage full disclosure by making it easier for candidates and committees to fully comply with the FECA. With fewer reports to file, candidates and committees should be able to file reports with fewer errors, and should need to devote less resources to their preparation.

The FEC is especially aware of the burden that current

reporting obligations place on candidates and their principal

campaign committees. The FEC therefore recommends changes in

the reporting schedule.

These changes would reduce the number of

reports required to be filed from a maximum of 24 each election cycle to 9 each cycle, a reduction of over 60% of the reports without any reduction in disclosure.

This substantial reduction in the reporting burden could easily be achieved by:

(1) permitting candidates to opt for either candidate
or committee reporting; and,

(2) elimination of the 30 day post-primary report; and

(3) only requiring semi-annual reports during non-election
years.

A similar reduction could be made in the reporting

burden currently placed on political committees (other than multicandidate committees), independent expenders, and State and local party

committees.

Adoption of the reporting schedule recommended by the

FEC would also reduce the number of reports required from such committees during each two-year election cycle from 24 to 9.

This reduction in the number of reports to be filed would reduce

the costs to the taxpayer of filing, copying, and reviewing these reports

at the FEC as well as at the offices of the Secretary of the Senate, Clerk of the House and State filing officers.

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