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Public Law 94-283

94th Congress

An Act

To amend the Federal Election Campaign Act of 1971 to provide that members of the Federal Election Commission shall be appointed by the President, by and with the advice and consent of the Senate, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

May 11, 1976 [S. 3065]

Federal Election
Campaign Act
Amendments of
1976.

SECTION 1. This Act may be cited as the "Federal Election Cam- 2 USC 431 note. paign Act Amendments of 1976".

TITLE I-AMENDMENTS TO FEDERAL ELECTION
CAMPAIGN ACT OF 1971

FEDERAL ELECTION COMMISSION MEMBERSHIP

SEC. 101. (a) (1) The second sentence of section 309 (a)(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 437c (a) (1)), as redesignated by section 105 (hereinafter in this Act referred to as the "Act"), is amended to read as follows: "The Commission is composed of the Secretary of the Senate and the Clerk of the House of Representatives, ex officio and without the right to vote, and 6 members appointed by the President of the United States, by and with the advice and consent of the Senate.".

(2) The last sentence of section 309 (a)(1) of the Act (2 U.S.C. 437c(a)(1)), as redesignated by section 105, is amended to read as follows: "No more than 3 members of the Commission appointed under this paragraph may be affiliated with the same political party.". (b) Section 309 (a) (2) of the Act (2 U.S.C. 437c (a) (2)), as redesignated by section 105, is amended to read as follows:

"(2)(A) Members of the Commission shall serve for terms of Term. 6 years, except that of the members first appointed—

"(i) two of the members, not affiliated with the same political party, shall be appointed for terms ending on April 30, 1977; "(ii) two of the members, not affiliated with the same political party, shall be appointed for terms ending on April 30, 1979; and

“(iii) two of the members, not affiliated with the same political party, shall be appointed for terms ending on April 30, 1981. "(B) A member of the Commission may serve on the Commission after the expiration of his term until his successor has taken office as a member of the Commission.

"(C) An individual appointed to fill a vacancy occurring other than Vacancies. by the expiration of a term of office shall be appointed only for the unexpired term of the member he succeeds.

"(D) Any vacancy occurring in the membership of the Commission shall be filled in the same manner as in the case of the original appointment.".

(c) (1) Section 309 (a)(3) of the Act (2 U.S.C. 437c (a) (3)), as redesignated by section 105, is amended by adding at the end thereof

Conflict-ofinterest.

26 USC 9001, 9031. Jurisdiction.

Guidelines, approval.

Post, p. 481.

Presidential appointments.

2 USC 437c note.

the following new sentences: "Members of the Commission shall not
engage
in any other business, vocation, or employment. Any individual
who is engaging in any other business, vocation, or employment at the
time such individual begins to serve as a member of the Commission
shall terminate or liquidate such activity no later than 1 year after
beginning to serve as such a member.”.

(2) Section 309 (b) of the Act (2 U.S.C. 437c (b)), as redesignated by section 105, is amended to read as follows:

"(b) (1) The Commission shall administer, seek to obtain compliance with, and formulate policy with respect to, this Act and chapter 95 and chapter 96 of the Internal Revenue Code of 1954. The Commission shall have exclusive primary jurisdiction with respect to the civil enforcement of such provisions.

"(2) Nothing in this Act shall be construed to limit, restrict, or diminish any investigatory, informational, oversight, supervisory, or disciplinary authority or function of the Congress or any committee of the Congress with respect to elections for Federal office.".

(3) The first sentence of section 309 (c) of the Act (2 U.S.C. 437c(c)), as redesignated by section 105, is amended by inserting immediately before the period at the end thereof the following: ", except that the affirmative vote of 4 members of the Commission shall be required in order for the Commission to establish guidelines for compliance with the provisions of this Act or with chapter 95 or chapter 96 of the Internal Revenue Code of 1954, or for the Commission to take any action in accordance with paragraph (6), (7), (8), or (10) of section 310(a)”.

(d) The last sentence of section 309 (f) (1) of the Act (2 U.S.C. 437c (f) (1)), as redesignated by section 105, is amended by inserting immediately before the period the following: "without regard to the provisions of title 5, United States Code, governing appointments in the competitive service".

(e) (1) The President shall appoint members of the Federal Election Commission under section 309 (a) of the Act (2 U.S.C. 437c (a)), as redesignated by section 105 and as amended by this section, as soon as practicable after the date of the enactment of this Act.

(2) The first appointments made by the President under section 309 (a) of the Act (2 U.S.C. 437c (a)), as redesignated by section 105 and as amended by this section, shall not be considered to be appointments to fill the unexpired terms of members serving on the Federal Election Commission on the date of the enactment of this Act.

(3) Members serving on the Federal Election Commission on the date of the enactment of this Act may continue to serve as such members until new members are appointed and qualified under section 309 (a) of the Act (2 U.S.C. 437c (a)), as redesignated by section 105 and as amended by this section, except that until appointed and qualified under this Act, members serving on such Commission on such date of enactment may, beginning on March 23, 1976, exercise only such powers and functions as may be consistent with the determinations of the Supreme Court of the United States in Buckley et al. against Valeo, Secretary of the United States Senate, et al. (numbered 75–436, 75-437) January 30, 1976.

(f) The provisions of section 309 (a) (3) of the Act (2 U.S.C. 437c (a) (3)), as redesignated by section 105, which prohibit any individual from being appointed as a member of the Federal Election Commission who is, at the time of his appointment, an elected or appointed officer or employee of the executive, legislative, or judicial branch of the Federal Government, shall not apply in the case of any individual

serving as a member of such Commission on the date of the enactment of this Act.

(g) (1) All personnel, liabilities, contracts, property, and records Transfer of determined by the Director of the Office of Management and Budget personnel and to be employed, held, or used primarily in connection with the func- property. tions of the Federal Election Commission under title III of the Act as such title existed on January 1, 1976, or under any other provision of law, are transferred to such Commission as constituted under the amendments made by this Act to the Federal Election Campaign Act of 1971.

(2) (A) Except as provided in subparagraph (B), personnel engaged in functions transferred under paragraph (1) shall be transferred in accordance with applicable laws and regulations relating to the transfer of functions.

(B) The transfer of personnel pursuant to paragraph (1) shall be without reduction in classification or compensation for 1 year after such transfer.

2 USC 431.

2 USC 431 note.

Savings

provision.

(3) All laws relating to the functions transferred under this Act shall, insofar as such laws are applicable and not amended by this Act, remain in full force and effect. All orders, determinations, rules, and opinions made, issued, or granted by the Federal Election Commission before its reconstitution under the amendments made by this Act which are in effect at the time of the transfer provided by paragraph (1), and which are consistent with the amendments made by this Act, shall continue in effect to the same extent as if such transfer had not occurred. Any rule or regulation proposed by such Commission before the date of the enactment of this Act shall be prescribed by such Commission only if, after such date of enactment, the rule or regulation is submitted to the Senate or the House of Representatives, as the case may be, in accordance with the provisions of section 315 (c) of the Act (as redesignated by section 105), and it is not disapproved 2 USC 437h. by the appropriate House of the Congress.

(4) The provisions of this Act shall not affect any proceeding pending before the Federal Election Commission on the date of the enactment of this Act.

(5) No suit, action, or other proceeding commenced by or against the Federal Election Commission or any officer or employee thereof acting in his official capacity shall abate by reason of the transfer made under paragraph (1). The court before which such suit, action, or other proceeding is pending may, on motion or supplemental petition filed at any time within 12 months after the date of the enactment of this Act, allow such suit, action, or other proceeding to be maintained against the Federal Election Commission if the party making the motion or filing the petition shows a necessity for the survival of the suit, action, or other proceeding to obtain a settlement of the question involved.

(6) Any reference in any other Federal law to the Federal Election Commission, or to any member or employee thereof, as such Commis

Proposed rules or regulations,

submittal to

Congress.

sion existed under the Federal Election Campaign Act of 1971 before 2 USC 431 note. its amendment by this Act shall be held and considered to refer to the Federal Election Commission, or the members or employees thereof, as such Commission exists under the Federal Election Campaign Act of 1971 as amended by this Act.

26 USC 9001, 9031.

2 USC 434.

Post, p. 494.

CHANGES IN DEFINITIONS

SEO. 102. (a) Section 301 (a) (2) of the Act (2 U.S.C. 431 (a) (2)) is amended by striking out "held to" and inserting in lieu thereof "which has authority to".

(b) Section 301 (e) (2) of the Act (2 U.S.C. 431 (e) (2)) is amended by inserting "written" immediately before "contract" and by striking out "expressed or implied,".

(c) Section 301 (e) (4) of the Act (2 U.S.C. 431 (e) (4)) is amended by inserting after "purpose" the following: ", except that this paragraph shall not apply in the case of legal or accounting services rendered to or on behalf of the national committee of a political party (unless the person paying for such services is a person other than the regular employer of the individual rendering such services), other than services attributable to activities which directly further the election of a designated candidate or candidates to Federal office, nor shall this paragraph apply in the case of legal or accounting services rendered to or on behalf of a candidate or political committee solely for the purpose of insuring compliance with the provisions of this Act or chapter 95 or chapter 96 of the Internal Revenue Code of 1954 (unless the person paying for such services is a person other than the regular employer of the individual rendering such services), but amounts paid or incurred for such legal or accounting services shall be reported in accordance with the requirements of section 304(b)”.

(d) Section 301 (e) (5) of the Act (2 U.S.C. 431(e) (5)) is amended—

(1) by striking out "or" at the end of clause (E), and
(2) by inserting after clause (F) the following new clauses:
"(G) a loan of money by a national or State bank made in
accordance with the applicable banking laws and regulations
and in the ordinary course of business, but such loans-

"(i) shall be reported in accordance with the requirements of section 304 (b); and

"(ii) shall be considered a loan by each endorser or guarantor, in that proportion of the unpaid balance. thereof that each endorser or guarantor bears to the total number of endorsers or guarantors: or

"(H) a gift, subscription, loan, advance, or deposit of money or anything of value to a national committee of a political party or a State committee of a political party which is specifically designated for the purpose of defraying any cost incurred with respect to the construction or purchase of any office facility which is not acquired for the purpose of influencing the election of any candidate in any particular election for Federal office, except that any such gift, subscription, loan, advance, or deposit of money or anything of value, and any such cost, shall be reported in accordance with section 304 (b); or

"(I) any honorarium (within the meaning of section 328);".

(e) Section 301 (e) (5) of the Act (2 U.S.C. 431 (e) (5)), as amended by subsection (d), is amended by striking out "individual" where it appears after clause (I) and inserting in lieu thereof "person". (f) Section 301 (f) (4) of the Act (2 U.S.C. 431 (f) (4)) is amended

(1) by inserting before the semicolon in clause (C) the following: ", except that the costs incurred by a membership organization, including a labor organization, or by a corporation, directly

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