[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
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 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