[Federal Register Volume 60, Number 221 (Thursday, November 16, 1995)]
[Rules and Regulations]
[Pages 57538-57539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28275]



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FEDERAL ELECTION COMMISSION
11 CFR Parts 9034 and 9038

[Notice 1995-19]


Public Financing of Presidential Primary and General Election 
Candidates

AGENCY: Federal Election Commission.

ACTION: Final rule; correcting amendments.

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SUMMARY: This document contains final rules correcting promulgation 
errors made in final rules published June 16, 1995 (60 FR 31854) 
regarding public financing of presidential primary and general election 
candidates.

DATES: The Commission will announce an effective date for these rules 
after they have been before Congress for 30 legislative days pursuant 
to 26 U.S.C. 9039(c). This announcement will be published in the 
Federal Register.

FOR FURTHER INFORMATION CONTACT:
Ms. Susan E. Propper, Assistant General Counsel, 999 E Street, N.W., 
Washington, D.C. 20463, (202) 219-3690 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: On June 16, 1995, the Commission published 
final rules revising its regulations governing public financing of 
presidential primary and general election candidates. 60 FR 31854 (June 
16, 1995). These regulations implement provisions of the Presidential 
Election Campaign Fund Act and the Presidential Primary Matching 
Payment Account Act.
    Unfortunately, there were a number of errors in the June 16 final 
rule document. The Commission is publishing two documents in today's 
edition of the Federal Register to correct these errors. Readers 
interested in the Commission's public financing regulations should 
carefully review these two documents.
    Most of the errors were of a technical nature. A Commission 
document published elsewhere in today's Federal Register corrects these 
technical errors.
    However, two of the errors in the June 16 final rule document were 
not purely technical in that they reflect errors made in approval of 
the final rules. Specifically, the June 16 final rules replaced 
Sec. 9034.4(a)(3)(ii) with the version of that provision that was in 
effect before the public financing rules were last revised in 1991. 56 
FR 35898 (July 29, 1991). This had the effect of eliminating language 
relating to candidates who continue to campaign after their dates of 
ineligibility. The June 16 final rules also removed the ``continuing to 
campaign'' reference from the heading in Sec. 9034.4(a)(3).
    In addition, the rules deleted language inserted in 
Sec. 9038.2(b)(2)(iii). The deleted language reduces the amount of an 
ineligible candidate's repayment by shortening the time period during 
which the candidate's non-qualified campaign expenses would generate a 
repayment obligation.
    The Commission never intended to make these revisions, as is 
evidenced by references to the deleted provisions that remain in other 
parts of the final rules. See, e.g., Sec. 9034.4(a)(3)(iii). 
Consequently, the Commission is publishing this document to restore the 
deleted provisions. The corrected versions of these rules are set out 
below. Because the regulated community had an opportunity to comment on 
these rules before they were promulgated in 1991, the Commission 
believes an additional comment period is unnecessary. Therefore, in 
accordance with 5 U.S.C. 553(b)(B), the Commission is approving these 
corrections as final rules without seeking further comment. The 
explanation and justification for these rules is set out at 56 FR 35898 
(July 29, 1991).
    Section 9039(c) of Title 26, United States Code requires that any 
rules or regulations prescribed by the Commission to carry out the 
provisions of Title 26 of the United States Code be transmitted to the 
Speaker of the House of Representatives and the President of the Senate 
30 legislative days before they are finally promulgated. These 
regulations were transmitted to Congress on November 9, 1995.

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

    The attached final rules, if promulgated, will not have a 
significant impact on a substantial number of small entities. The basis 
for this certification is that few, if any, small entities will be 
affected by these final rules. Furthermore, any small entities affected 
are already required to comply with the requirements of the 
Presidential Primary Matching Payment Account Act in these areas.

List of Subjects

11 CFR 9034

    Campaign funds.

11 CFR 9038

    Campaign funds.

    For the reasons set out in the preamble, subchapter F of chapter I 
of title 11 of the Code of Federal Regulations is amended as follows:

PART 9034--ENTITLEMENTS

    1. The authority citation for part 9034 continues to read as 
follows:

    Authority: 26 U.S.C. 9034 and 9039(b).

    2. Section 9034.4 is amended by revising the heading in paragraph 
(a)(3), and by revising paragraph (a)(3)(ii), to read as follows:


Sec. 9034.4  Use of contributions and matching payments.

    (a) * * *
    (3) Winding down costs and continuing to campaign. * * *
    (ii) If the candidate continues to campaign after becoming 
ineligible due to the operation of 11 CFR 9033.5(b), the candidate may 
only receive matching funds based on net outstanding campaign 
obligations as of the candidate's date of ineligibility. The statement 
of net outstanding campaign obligations shall only include costs 
incurred before the candidate's date of ineligibility for goods and 
services to be received before the date of ineligibility and for which 
written arrangement or commitment was made on or before the candidate's 
date of ineligibility, and shall not include winding down costs until 
the date on which the candidate qualifies to receive winding down costs 
under paragraph (a)(3)(i) of this section.
    Contributions received after the candidate's date of ineligibility 
may be used to continue to campaign, and may be submitted for matching 
fund payments. The candidate shall be entitled to receive the same 
proportion of matching funds to defray net outstanding campaign 
obligations as the candidate received before his or her date of 
ineligibility. Payments from the matching payment account that are 
received after the candidate's date of ineligibility may be used to 
defray the candidate's net outstanding campaign 

[[Page 57539]]
obligations, but shall not be used to defray any costs associated with 
continuing to campaign unless the candidate reestablishes eligibility 
under 11 CFR 9033.8.
* * * * *

PART 9038--EXAMINATIONS AND AUDITS

    1. The authority citation for part 9038 continues to read as 
follows:

    Authority: 26 U.S.C. 9038 and 9039(b).

    2. Section 9038.2 is amended by revising the last sentence in 
paragraph (b)(2)(iii)(B) to read as follows:


Sec. 9038.2  Repayments.

* * * * *
    (b) * * *
    (2) * * *
    (iii) * * *
    (B) * * * In doing this, the Commission will review committee 
expenditures from the date of the last matching fund payment to which 
the candidate was entitled, using the assumption that the last payment 
has been expended on a last-in, first-out basis.
* * * * *
    Dated: November 9, 1995.
Lee Ann Elliott,
Vice Chairman, Federal Election Commission.
[FR Doc. 95-28275 Filed 11-15-95; 8:45 am]
BILLING CODE 6715-01-M