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Eliminate certain superfluous information currently
required on registration statements such as the "scope"
of the Committee, whether it is "continuing", disposition
of residual funds, and reports filed with State offices.

Reduce the burden on State filing offices by

shortening the length of time reports must be

preserved, and only requiring multicandidate
committees to file reports in their home states.
(We would like to note at this point that through the
support of this committee, the Senate has already

acted on one of the FEC's recommendations to assist

State officers by passing s. 994 authorizing $250,000
to reimburse them for their expenses in maintaining

FECA reports.)

II.

ENCOURAGING PARTY AND GRASS ROOTS ACTIVITY

Unfortunately, the FECA has had, or is perceived to have had, some unforeseen effects on party and grass roots political activity. In particular, such activity as spontaneous local volunteer efforts, should be encouraged since it is the essence of healthy election campaigning. Changes in the statute are vitally needed to permit

State and local party committees adequate flexibility for vigorous campaign activity.

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(bumper stickers, handbills, pamphlets, etc.), without

having such expenses count towards the expenditure

limitations of a Presidential nominee.

The current $500 exemption for vendors, and volunteer

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The contribution limitations should be clarified by placing them on an election cycle basis, rather than a "per election" basis. ample, if such a clarification were adopted, an individual would be permitted to give up to $2,000 to a candidate at any time during an election cycle. (An election cycle would be 2 years for House candidates, 4 years for Presidential candidates and 6 years for Senate

candidates.)

The contribution limitations also contain a number of anomalies

which should be corrected.

Chief among these are:

If a national committee of a political party serves as

its Presidential nominee's principal campaign committee,
it becomes subject to the contribution limitations for

principal campaign committees. In effect, the national
committee of a political party is prevented from serving
as the principal campaign committee of its Presidential
nominee. This situation should be corrected.

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Although an individual may give up to $20,000 per year
to the committees established by the national committee
of a political party, a multicandidate committee may

only give $15,000.

This discrepancy should be addressed.

In addition to the above, the FEC recommends a minimum

5

contribution amount be established for multicandidate committees
to become qualified for the higher contribution limits of the Act.
At present the FECA requires that a committee meet three conditions
to qualify as a multicandidate committee: 1) be registered with

the Commission for six months; 2) receive contributions from at least 50 individuals; and 3) make contributions to at least five Federal candidates. The five contributions to Federal candidates

required to satisfy the third condition could be as little as $1

each.

The FEC recommends that a figure of at least $100 be established

in order for such contributions to satisfy the third condition and

qualify for the higher contribution limit.

B.

Presidential Campaigns

The FEC believes that the 1976 Presidential public financing

program worked very well, considering that it was the first time

that such a comprehensive scheme of national election campaign financing had been attempted. During the 1976 Presidential election,

certain difficulties did, of course, arise. Some of these difficulties

were discussed at hearings held by the FEC in June 1978 on proposed

changes to our regulations on public financing.

The FEC is attempting to alleviate the problems noted at the

1978 hearings through revisions to our regulations.

On May 7, 1979,

we promulgated new primary matching fund regulations.

On June 6,

1979, draft convention financing regulations were published for

comment, and we expect to have a final set of proposed convention

financing regulations before the Congress shortly.

There is of course a limit to what can be done through

regulations. Therefore, the FEC has suggested a number of changes

to the provisions of the FECA regarding Presidential elections and

public financing.

The FECA should be amended to permit Congressional and State candidates to give occasional, isolated or incidental support to their

party's Presidential nominee without such expenses counting as an

expenditure on behalf of the Presidential candidate. The present

lack of clarity in the law on this point has had a chilling effect

on grass roots candidate activity in support of Presidential candi

dates receiving public financing. The law should be amended to accomm

date such endorsements since they are a traditional part of Presidential

and Congresssional candidates' campaigns.

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