Federal Election Commission Main Page
January 5, 1984
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1983-42
Mark Steven Soroka
Woolworth Building
233 Broadway
New York, NY 10279
Dear Mr. Soroka:
This responds to your letter of November 25, 1983,
requesting an advisory opinion on behalf of Allied Building
Inspectors, Local 211-I.U.O.E. PAC concerning application of the
Federal Election Campaign Act of 1971, as amended ("the Act"),
and Commission regulations to a proposed transfer of funds from
the PAC's Federal fund to its State fund.
Your letter states that in 1982, Allied Building Inspectors,
Local 211-I.U.O.E. Political Action Committee ("the PAC") was
established. At that time, two "separate segregated funds were
set up," one solely for Federal election activity and the second
for State activity. The PAC registered as a political committee
with the Commission on October 19, 1982.
You state that individuals contributed amounts of less than
$99 to the PAC, and these contributions were not earmarked for
any particular candidate, or for candidates seeking Federal or
State office. Subsequently, the PAC determined the allocation of
these campaign contributions to the Federal and State funds based
on what the anticipated needs of each would be.1/ You state
further that the amount of monies currently maintained in the
Federal fund exceeds the need for Federal election activity;
similarly, the portion of monies initially allocated to the State
fund is inadequate for its needs. Thus, you ask specifically
1/ The Commission notes that solicitations for the Federal fund
must be made in accordance with SS 102.3(a)(2) which requires, in
part, that contributors be informed that their contributions will
be used to support Federal candidates and that such contributions
are subject to the contribution limits of the Act.
whether the Federal separate segregated fund may transfer funds
to the State fund and if so, whether there are any limitations on
these transfers or any reporting requirements which must be
followed.
The Commission concludes, based on the description provided
in your letter, that such a transfer of funds from the Federal
fund to the State fund is permissible under the Act and
Commission regulations.2/ Commission regulations state that
transfers of funds may be made without limit between affiliated
committees, whether or not they are political committees under
11 CFR 100.5. 11 CFR 102.6(a); also see 11 CFR 100.5(g)(2).
Accordingly, the Federal fund would be permitted to make
unlimited transfers to the State fund. In addition, the limits
of 2 U.S.C. SS 441a(a) do not apply to contributions (or transfers)
made to entities other than to political committees or Federal
candidates.
With regard to reporting obligations, the PAC must itemize
the amount of each transfer made by the Federal fund to the State
fund. See 2 U.S.C. SS 434(b)(5)(C) and 11 CFR 104.3(b)(1)(ii).
The Commission expresses no opinion regarding possible
application of any State law to the funds transferred for State
election purposes, except to note that any applicable State law
purporting to limit or prohibit this transfer would not be
preempted or superseded. 2 U.S.C. SS 453, 11 CFR 108.7; also, see
Advisory Opinion 1981-18, copy enclosed.
This response constitutes an advisory opinion concerning
application of the Act, or regulations prescribed by the
Commission, to the specific transaction or activity set forth in
your request. See 2 U.S.C. 437f.
2/ The Commission notes that in the converse case -- that is, a
transfer of monies from the State fund to the Federal fund -- the
transfer must be made in accordance with 11 CFR 102.6(a) which
requires, in part, that the transfer "be made only from funds
which are permissible under the Act." 11 CFR 102.6(a)(1)(iv).