[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Proposed Rules]
[Pages 52901-52902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25921]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 61, No. 197 / Wednesday, October 9, 1996 /
Proposed Rules
[[Page 52901]]
FEDERAL ELECTION COMMISSION
11 CFR Part 104
[Notice 1996-19]
Recordkeeping and Reporting by Political Committees: Best Efforts
AGENCY: Federal Election Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Election Commission requests comments on proposed
changes to its regulations requiring treasurers of political committees
to exercise best efforts to obtain and report the complete
identification of each individual who contributes more than $200 per
calendar year. The proposed revisions would modify the required
statement which must accompany solicitations for contributions. The
draft rules which follow do not represent a final decision by the
Commission. Further information is provided in the supplementary
information which follows.
DATES: Comments must be received on or before December 6, 1996.
ADDRESSES: Comments must be made in writing and addressed to: Ms. Susan
E. Propper, Assistant General Counsel, 999 E Street, N.W., Washington,
D.C. 20463.
FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant
General Counsel, (202) 219-3690 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: The Commission is publishing today the text
of proposed revisions to its regulations at 11 CFR 104.7(b)(1) and (3),
which set forth steps needed to ensure that political committees use
their best efforts to obtain and report the names, addresses,
occupations and employers of individuals who contribute more than $200
per calendar year. These regulations implement section 432(i) of the
Federal Election Campaign Act of 1971, as amended (``the Act'' or
``FECA''). 2 U.S.C. 432(i).
The FECA specifies that reports filed by political committees
disclose ``the identification of each * * * person (other than a
political committee) who makes a contribution to the reporting
committee * * * whose contribution or contributions [aggregate over
$200 per calendar year] * * * together with the date and amount of any
such contribution.'' 2 U.S.C. 434(b)(3)(A). For an individual,
identification means his or her full name, mailing address, occupation
and employer. 2 U.S.C. 431(13).
The Commission's current regulations at 11 CFR 104.7(b)(1)
implement these statutory requirements by requiring the inclusion of
the following statement on all solicitations: ``Federal law requires
political committees to report the name, mailing address, occupation
and name of employer for each individual whose contributions aggregate
in excess of $200 in a calendar year.'' Recently, the Court of Appeals
for the D.C. Circuit concluded that this mandatory statement is
inaccurate and misleading. Republican National Committee v. Federal
Election Commission, 76 F.3d 400, 406 (D.C. Cir. 1996), petition for
cert. filed,______ U.S.L.W.______(U.S. Sept. 9, 1996) (No. 96-______).
The court pointed out that the FECA only requires committees to use
their best efforts to collect the information and to report whatever
information donors choose to provide. Other provisions of the ``best
efforts'' regulations were upheld by the court.
Consequently, the Commission proposes revising paragraph (b)(1) of
section 104.7 by requiring political committees to include in their
solicitations an accurate statement of the statutory requirements.
Either of the following two examples would satisfy this requirement,
but would not be the only allowable statements: 1) ``Federal law
requires us to use our best efforts to collect and report the name,
mailing address, occupation and name of employer of individuals whose
contributions exceed $200 in a calendar year.'' 2) ``To comply with
Federal law, we must use best efforts to obtain, maintain, and submit
the name, mailing address, occupation and name of employer of
individuals whose contributions exceed $200 per calendar year.''
Comments are sought, however, on whether it would be preferable to
simply require all political committees to use one or the other of
these two formulations. Please note that statements such as ``Federal
law requires political committees to ask for this information,''
without more, do not provide contributors with a complete statement
regarding Federal law, and hence, do not meet the requirements of
proposed 11 CFR 104.7(b)(1).
The Commission also proposes revising paragraph (b)(3) of section
104.7 to indicate that separate segregated funds are expected to report
contributor information in the possession of their connected
organizations. This would include corporations (including corporations
without capital stock), labor organizations, trade associations,
cooperatives and membership organizations. In some situations, it may
be more efficient for separate segregated funds to obtain the missing
contributor information from their connected organizations than from
the contributors.
Certification of No Effect Pursuant to 5 U.S.C. 605(b) Regulatory
Flexibility Act
The attached proposed rules will not, if promulgated, have a
significant economic impact on a substantial number of small entities.
The basis for this certification is that any small entities affected
are already required to comply with the requirements of the Act in
these areas.
List of Subjects in 11 CFR Part 104
Campaign funds, Political candidates, Political committees and
parties, Reporting and recordkeeping requirements.
For the reasons set out in the preamble, it is proposed to amend
Subchapter A, Chapter I of Title 11 of the Code of Federal Regulations
as follows:
PART 104--REPORTS BY POLITICAL COMMITTEES (2 U.S.C. 434)
1. The authority citation for Part 104 would be revised to read as
follows:
Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(d), 432(i), 434,
438(a)(8), 438(b), 439a.
2. Section 104.7 would be amended by revising paragraphs (b)(1) and
(b)(3) to read as follows:
Sec. 104.7 Best efforts (2 U.S.C. 432(i)).
* * * * *
(b) * * *
(1) All written solicitations for contributions include a clear
request for
[[Page 52902]]
the contributor's full name, mailing address, occupation and name of
employer, and include an accurate statement of Federal law regarding
the collection and reporting of individual contributor identifications,
such as: ``Federal law requires us to use our best efforts to collect
and report the name, mailing address, occupation and name of employer
of individuals whose contributions exceed $200 in a calendar year,'' or
``To comply with Federal law, we must use best efforts to obtain,
maintain, and submit the name, mailing address, occupation and name of
employer of individuals whose contributions exceed $200 per calendar
year.'' The request and statement shall appear in a clear and
conspicuous manner on any response material included in a solicitation.
The request and statement are not clear and conspicuous if they are in
small type in comparison to the solicitation and response materials, or
if the printing is difficult to read or if the placement is easily
overlooked.
* * * * *
(3) The treasurer reports all contributor information not provided
by the contributor, but in the political committee's possession, or in
its connected organization's possession, regarding contributor
identifications, including information in contributor records,
fundraising records and previously filed reports, in the same two-year
election cycle in accordance with 11 CFR 104.3; and
* * * * *
Dated: October 4, 1996.
Lee Ann Elliott,
Chairman, Federal Election Commission.
[FR Doc. 96-25921 Filed 10-8-96; 8:45 am]
BILLING CODE 6715-01-P
