96-20102. Coordinated Party Expenditures

[Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)]
[Rules and Regulations]
[Pages 40960-40961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20102]


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[[Page 40961]]

FEDERAL ELECTION COMMISSION

11 CFR Part 110

[Notice 1996-14]


Coordinated Party Expenditures

AGENCY: Federal Election Commission.

ACTION: Final rule; technical amendment

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SUMMARY: On June 26, 1996, the Supreme Court issued a decision in Colo. 
Repub. Fed. Camp. Comm. et al. v. F.E.C. regarding coordinated party 
expenditures. The Commission today is publishing a technical amendment 
to conform its regulations to the decision. The Commission also is 
publishing today a Notice of Availability for a Petition for Rulemaking 
it received after the decision.

EFFECTIVE DATE: August 7, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. Susan E. Propper, Assistant 
General Counsel, or Ms. Teresa A. Hennessy, Attorney, 999 E Street, 
N.W., Washington, D.C. 20463, [phone] or [phone].

SUPPLEMENTARY INFORMATION: The Federal Election Campaign Act of 1971 
(``FECA'') governs, inter alia, coordinated party expenditures by party 
committees. 2 U.S.C. 441a(d). A party committee is a political 
committee that represents a political party and is part of the official 
party structure. 11 CFR 100.5(e)(4). Pursuant to 11 CFR 110.7, a party 
committee may make coordinated expenditures on behalf of a candidate 
for Federal office who is affiliated with the party in addition to 
direct contributions to the candidate under 2 U.S.C. 441a(a). The 
Commission's regulations specifically provide that a national committee 
of a political party, and a State committee of the party, may make 
these expenditures in connection with the general election campaign of 
a candidate for the U.S. House of Representatives (``House'') or the 
U.S. Senate (``Senate''). 11 CFR 110.7(b)(1). The regulations also 
provided that party committees may not make independent expenditures on 
behalf of a candidate for the House or the Senate. 11 CFR 110.7(b)(4). 
An independent expenditure is an expenditure that expressly advocates 
the election or defeat of a candidate for Federal office, see 11 CFR 
100.22(a), and is not coordinated with the candidate on whose behalf it 
is made. 11 CFR 109.1.
    In Colo. Repub. Fed. Camp. Comm. et al. v. F.E.C., 116 S.Ct. 2309 
(1996), the Commission had alleged, inter alia, that the Colorado 
Republican Federal Campaign Committee exceeded the Act's limits for 
coordinated party expenditures when it financed advertisements 
referring to a Democratic candidate for the U.S. Senate from Colorado. 
The Court ruled that party committees are capable of making independent 
expenditures on behalf of their candidates for Federal office and that 
these expenditures are not subject to the coordinated party expenditure 
limits at 2 U.S.C. Sec. 441a(d). 116 S.Ct. 2312-15. The Court also 
stated that, because the coordinated party expenditure limits for 
presidential elections were not at issue in the case, the decision did 
not ``* * * address issues that might grow out of the public funding of 
Presidential campaigns''. 116 S.Ct. 2314. Section 110.7(b)(4) of the 
Commission's regulations has been deleted to follow the Supreme Court's 
decision. Since the ruling is limited to congressional campaigns, the 
Notice does not revise the provisions for coordinated party 
expenditures on behalf of presidential candidates.
    Therefore, the Commission is publishing this Notice to make the 
necessary technical amendment to its regulations. The Notice amends 11 
CFR 110.7 to conform to the Court's decision. Because the amendment is 
merely technical, it is exempt from the notice and comment requirements 
of the Administrative Procedure Act. See 2 U.S.C. 553(b)(B). It is also 
exempt from the legislative review provisions of the FECA. See 2 U.S.C. 
438(d). These exemptions allow the amendment to be made effective 
immediately upon publication in the Federal Register. As a result, this 
amendment is made effective on August 7, 1996.

Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory 
Flexibility Act)

    I certify that the attached final rule will not have a significant 
economic impact on a substantial number of small entities. The basis of 
the certification is that the rule's repeal is necessary to conform to 
a recent Supreme Court decision. The repeal permits, but does not 
require, the expenditure of funds in certain Federal campaigns. 
Therefore, no significant economic impact is caused by the final rule.

List of Subjects in 11 CFR Part 110

    Campaign funds, Political committees and parties.

    For the reasons set out in the preamble, Subchapter A, Chapter I, 
Title 11 of the Code of Federal Regulations is amended as follows:

PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS

    1. The authority citation for Part 110 continues to read as 
follows:

    Authority: 2 U.S.C. 431(8), 431(9), 432(c)(2), 437d(a)(8), 
438(a)(8), 441a, 441b, 441d, 441e, 441f, 441g and 441h.


Sec. 110.7   Party Committee Expenditure Limitations (2 U.S.C. 
441a(d)).

    2. Section 110.7(b)(4) is removed.

    Dated: August 2, 1996
John Warren McGarry,
Vice Chairman, Federal Election Commission.
[FR Doc. 96-20102 Filed 8-06-96; 8:45 am]
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