Federal Election Commission Main Page
February 27, 1986
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1986-5
Mr. Donald J. Messaglia, Treasurer
Barnes for Congress Committee
Box 7015
South Bend, Indiana 46634
Dear Mr. Messaglia:
This responds to your letter of January 18, 1986, requesting
an advisory opinion on behalf of the Barnes for Congress
Committee concerning application of the Federal Election Campaign
Act of 1971, as amended ("the Act"), and Commission regulations
to the transfer of funds from a congressional campaign committee
to a local campaign committee.
You state that the Barnes for Congress Committee, the
principal campaign committee of Michael P. Barnes of Indiana
("the Committee") in the 1984 election cycle, plans to terminate
in the very near future. You ask whether it would be permissible
for the Committee to transfer funds accumulated during the 1984
election campaign to the local Barnes for St. Joseph County
Prosecutor Committee.
Under the Act and Commission regulations, excess campaign
funds may be used for a variety of specific purposes that are
expressly made lawful: the funds may be used to defray any
ordinary and necessary expenses incurred in connection with a
candidate's duties as a Federal officeholder; they may be
contributed to any organization that is exempt from Federal
taxation under 26 U.S.C. SS 170(c); they may be contributed without
limitation to any national, State, or local committee of a
political party; or they may be used for "any other lawful
purpose." Such funds may not be converted by any person to any
personal use if the candidate involved was not a Member of
Congress on January 8, 1980. See 2 U.S.C. SS 439a and 11 CFR
113.2; see also Advisory Opinion 1980-113.
The Commission concludes that so long as the proposed
transfer of funds from the Federal campaign committee to the
local campaign committee is permissible under Indiana law, and
assuming any funds so transferred are in fact used in the
candidate's local election campaign and not diverted to the
candidate's personal use, such a transfer would be permissible
under 2 U.S.C. SS 439a. See Advisory Opinions 1980-113 and 1983-27.
If, following this transfer, the Committee wishes to
terminate its reporting status, it may do so by filing a
Termination Report on FEC Form 3 or by filing a written statement
containing the same information, provided it has met all the
requirements of 11 CFR 102.3(a). The Termination Report must
disclose the disposition of all residual funds. 11 CFR 102.3(a).
Finally, the Commission emphasizes that if any provisions of
Indiana law are applicable to the proposed transfer, such
provisions would not be preempted by 2 U.S.C. SS 453 and 11 CFR
108.7. Thus, the application of any Indiana law concerning, for
example, the amount of such a transfer or the reporting of it by
the transferee committee would not be superseded or preempted by
the Act or regulations of the Commission. See Advisory Opinions
1979-82, 1978-94, and 1978-37.
The Commission expresses no opinion as to the possible tax
ramifications of the proposed transaction, because that issue is
not within its jurisdiction.
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. SS 437f.