Federal Election Commission Main Page
FEDERAL ELECTION COMMISSION
Washington, DC 20463
CERTIFIED MAIL March 10, 2006
RETURN RECEIPT REQUESTED
ADVISORY OPINION 2006-1
Mr. Douglas Boxer, Committee Director
Pac for a Change
300 Frank Ogawa Plaza
Suite 500
Oakland, CA 94612
Dear Mr. Boxer:
We are responding to your advisory opinion request on
behalf of Pac for a Change ("the Committee") concerning the
application of the Federal Election Campaign Act of 1971, as
amended (the "Act"), and Commission regulations to the
Committee's purchase of books written by a Federal
officeholder at a discounted rate from the publisher, and
the Committee's use of those books as a gift for persons who
raise at least $100 for the Committee. The Commission
concludes that the Committee may purchase the books at the
discounted rate offered by the publisher.
Background
The facts presented in this advisory opinion are based
on your letter received on January 11, 2006.
The Committee is a non-connected multicandidate
committee registered with the Commission. The Committee
proposes to purchase a sizeable number of copies of "A Time
to Run," a novel written by Senator Barbara Boxer, from the
publisher, Chronicle Books, a limited liability company.
Chronicle Books will charge the Committee for the books at a
price that is less than the suggested retail price, but that
is the standard price Chronicle Books charges other large
purchasers. Senator Boxer will sign each book, and the
books will then be offered to any person who raises at least
$100 for the Committee in a certain time period.
Question Presented
May the Committee purchase copies of Senator Boxer's
book from the publisher at the discounted price the
publisher charges other large purchasers?
Legal Analysis and Conclusions
The Commission concludes that the Committee may
purchase from the publisher copies of "A Time to Run" at the
same discounted rate paid by other large purchasers. This
conclusion is based on the Committee qualifying for the
discounted price as any other bulk purchaser would qualify.
The Committee's purchase of the books at a discounted
rate raises the issue of whether the publisher is making an
in-kind contribution to the Committee. The term
"contribution" includes giving "anything of value" for the
purpose of influencing an election. 2 U.S.C. 431(8)(A)(i)
and 441b(b)(2); 11 CFR 100.52(a) and 114.1(a)(1). The term
"anything of value" includes the provision of goods or
services at less than the usual and normal charge. 11 CFR
100.52(d)(1). The "usual and normal charge" for goods means
the price of those goods in the market from which they
ordinarily would have been purchased at the time of the
contribution. 11 CFR 100.52(d)(2). In the past, the
Commission has concluded that the purchase of goods or
services at a discounted rate does not constitute a
contribution when the discounted items are made available in
the ordinary course of business and on the same terms and
conditions offered to the vendor's other customers that are
not political committees. See Advisory Opinions 2004-18,
2001-08, 1996-02, 1995-46, 1994-10, and 1993-20. According
to your request, the Committee will pay the usual and normal
charge for this type of bulk purchase from the publisher.
Thus the publisher would not be making an in-kind
contribution to the Committee in this transaction.
Based on the foregoing analysis, the proposed activity
is permissible under the Act and Commission regulations.
The amounts spent by the Committee for the purchase of the
books should be reported as operating expenditures for the
2006 election cycle. 2 U.S.C. 434(b)(4)(A) and (5)(A); 11
CFR 104.3(b)(3)(i).
This response constitutes an advisory opinion
concerning the application of the Act and Commission
regulations to the specific transaction or activity set
forth in your
request. See 2 U.S.C. 437f. The Commission emphasizes
that, if there is a change in any
of the facts or assumptions presented, and such facts or
assumptions are material to a conclusion presented in this
advisory opinion, then the requestor may not rely on that
conclusion as support for its proposed activity.
Sincerely,
(signed)
Michael E. Toner
Chairman
Enclosures (Advisory Opinions 2004-18, 2001-08, 1996-02,
1995-46, 1994-10, and
1993-20)