[Federal Register Volume 68, Number 220 (Friday, November 14, 2003)]
[Rules and Regulations]
[Pages 64512-64517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28469]


=======================================================================
-----------------------------------------------------------------------

FEDERAL ELECTION COMMISSION

11 CFR Parts 102 and 110

[Notice 2003-19]


Multicandidate Committees and Biennial Contribution Limits

AGENCY: Federal Election Commission.

ACTION: Final rules and transmittal of regulations to Congress.

-----------------------------------------------------------------------

SUMMARY: The Federal Election Commission is revising its rules covering 
four areas: (1) Multicandidate political committee status, (2) annual 
contributions by persons other than multicandidate committees to 
national party committees, (3) contributions to candidates for more 
than one Federal office; and (4) biennial contribution limits for 
individuals. These final rules provide that once a political committee 
satisfies certain criteria, it automatically becomes a multicandidate 
committee and is required to notify the Commission of its new status. 
The final rules also update the limit on contributions from persons 
other than multicandidate committees to national party committees and 
to candidates running for more than one Federal office. In addition, 
the final rules adjust the attribution of contributions to candidates 
from individuals under the biennial limits. Further information is 
provided in the supplementary information that follows.

EFFECTIVE DATE: December 15, 2003.

FOR FURTHER INFORMATION CONTACT: Mr. John C. Vergelli, Acting Assistant 
General Counsel, Mr. Richard T. Ewell, Attorney, or Mr. Albert J. Kiss, 
Attorney,

[[Page 64513]]

999 E Street, NW., Washington, DC 20463, (202) 694-1650 or (800) 424-
9530.

SUPPLEMENTARY INFORMATION: These final rules address four different 
issues. First, the Commission confirms that political committees 
automatically become multicandidate committees once certain statutory 
requirements are met. Second, the Commission updates the annual limit 
on contributions from persons other than multicandidate committees to 
national party committees to conform to the change made by Congress in 
the Bipartisan Campaign Reform Act of 2002 (``BCRA''). Third, the 
Commission implements a separate conforming change to the limits on 
contributions to candidates running for more than one Federal office. 
Finally, the Commission corrects its rules governing the biennial limit 
on aggregate individual contributions in light of BCRA. These final 
rules implement the provisions of the Federal Election Campaign Act of 
1971, as amended (``FECA'' or the ``Act''), 2 U.S.C. 431 et seq.
    The Notice of Proposed Rulemaking (``NPRM''), on which these final 
rules are based, was published in the Federal Register on August 21, 
2003. 68 FR 50,488 (August 21, 2003). The comment period was originally 
set to close on September 19, 2003, but the Commission extended the 
comment period until September 29, 2003. The Commission received seven 
comments on the proposed rules.\1\ The Commission held a public hearing 
on this and three other rulemakings on October 1, 2003. Seven witnesses 
testified during the hearing. Transcripts of the hearing are available 
at http://www.fec.gov/register.htm. Please note that, for purposes of 
this document, the terms ``commenter'' and ``comment'' apply to both 
written comments and oral testimony at the public hearing.
---------------------------------------------------------------------------

    \1\ The Commission received written comments from: Perkins, Coie 
LLP; The Campaign Legal Center, National Republican Senatorial 
Committee, Republican National Committee; Sandler, Reiff & Young, 
P.C.; attorneys Lyn Utrecht, Eric Kleinfeld, Pat Fiori, and James 
Lamb of Ryan, Phillips, Utrecht & MacKinnon; and the Internal 
Revenue Service.
---------------------------------------------------------------------------

    Under the Administrative Procedures Act, 5 U.S.C. 553(d), and the 
Congressional Review of Agency Rulemaking Act, 5 U.S.C. 801(a)(1), 
agencies must submit final rules to the Speaker of the House of 
Representatives and the President of the Senate, and publish them in 
the Federal Register at least 30 calendar days before they take effect. 
The final rules that follow were transmitted to Congress on November 7, 
2003.

Explanation and Justification

11 CFR 102.2 Statement of Organization; Forms and Committee 
Identification Number

    Section 441a(a)(4) of the FECA provides that, ``the term 
`multicandidate political committee' means a political committee which 
has been registered with [the Commission or Secretary of the Senate] 
for a period of not less than six months, which has received 
contributions from more than 50 persons, and except for any State 
political party organization, has made contributions to 5 or more 
candidates for Federal office.'' 2 U.S.C. 441a(a)(4). On the basis of 
this statutory provision, the Commission's rules at 11 CFR 100.5(e)(3) 
define a ``multicandidate committee'' as a political committee meeting 
these three requirements.
    To monitor compliance with the contribution limits for 
multicandidate political committees set out at 11 CFR 110.2, the 
Commission has required such committees to file FEC Form 1M to certify 
that they satisfied the criteria for becoming multicandidate political 
committees. See discussion below regarding revisions to 11 CFR 110.2. 
Specifically, 11 CFR 102.2(a)(3) formerly required that this 
certification be filed before a political committee may avail itself of 
the multicandidate committee contribution limits.
    In the NPRM, the Commission proposed amending 11 CFR 102.2(a)(3) to 
eliminate the requirement that a political committee file Form 1M with 
the Commission before making any contributions under the increased 
contribution limits with respect to candidates in 11 CFR 110.2(b). The 
only comment on this issue indicated that the Commission's approach 
would be consistent with a determination that multicandidate status is 
mandatory rather than elective, but would not be consistent with a 
general rule permitting political committees to choose their status.
    For the reasons stated in the Explanation and Justification for 11 
CFR 110.2, the Commission views multicandidate committee status as 
automatic once all three necessary criteria are satisfied. Therefore, 
the Commission is revising 102.2(a)(3) to specify that a political 
committee must certify its status as a multicandidate committee within 
ten days of satisfying the requirements of 11 CFR 100.5(e)(3). This 
certification provides clear notice of the political committee's status 
to recipients of contributions from the committee, and to the 
Commission. The ten-day requirement was selected because it corresponds 
to the analogous time requirement for a political committee to report 
any changes to its Statement of Organization. See 11 CFR 102.2(a)(2).
    The Commission specifically sought comment on how it should address 
a situation where a political committee qualifies for multicandidate 
status, yet does not certify its status within ten days, and, once so 
qualified, makes a contribution exceeding $2,000 to a candidate for 
Federal office. None of the commenters addressed this issue. Because 
the previous rule at 11 CFR 102.2(a)(3) required a committee to certify 
its multicandidate status prior to making a contribution in excess of 
the limit for non-multicandidate committees, failure to comply with the 
previous rule resulted in both a reporting violation and an excessive 
contribution. Given the removal of the ban on making contributions of 
(in the previous rule) more than $1,000 without filing the 
certification, the Commission concludes that failure to comply with the 
new rule is a violation of the reporting requirements of 2 U.S.C. 433, 
but not an excessive contribution so long as the amount is within the 
contribution limits prescribed for political committees with 
multicandidate committee status.

11 CFR 110.1 Contributions by Persons Other Than Multicandidate 
Political Committees

A. 11 CFR 110.1(c) Contributions by Persons Other Than Multicandidate 
Committees to National Party Committees
    In section 307(a)(2) of BCRA, Congress raised the annual aggregate 
limit on contributions by persons other than multicandidate political 
committees to national political party committees from $20,000 to 
$25,000. 2 U.S.C. 441a(a)(1)(B). The Commission proposed revising the 
corresponding regulation in 11 CFR 110.1(c)(3) to reflect this 
statutory change. 68 FR 50,490. The Commission received no comments on 
this proposal. The Commission is therefore revising 11 CFR 110.1(c)(3) 
as proposed in the NPRM to reflect accurately the new annual aggregate 
limit.
B. 11 CFR 110.1(f) Contributions to Candidates for More Than One 
Federal Office
    In BCRA, Congress raised the per election limit on contributions to 
candidates from persons other than multicandidate committees from 
$1,000 to $2,000. 2 U.S.C. 441a(a)(1)(A). The Commission is accordingly 
revising 11 CFR 110.1(f) to conform its regulations

[[Page 64514]]

to this new statutory limit. Because the Commission's rules must 
accurately reflect Congress's decision to adjust this contribution 
limit, which took effect on January 1, 2003, it is appropriate to 
implement this higher limit in the final rules. This provision was not 
discussed in the NPRM. The Commission determines that, under section 
553(b)(3) of the Administrative Procedure Act, good cause exists to 
implement this technical and conforming change without delay. It is not 
necessary to seek public comment at this point when the Commission 
obtained and fully considered public comment on the underlying rules at 
11 CFR 110.1(a) implementing the contribution limits. See Final Rules 
and Explanation and Justification for Contribution Limitations and 
Prohibitions, 67 FR 69,928 (Nov. 19, 2002). Accordingly, the Commission 
is issuing this final rule without notice and comment.

11 CFR 110.2 Contributions by Multicandidate Political Committees

    11 CFR 110.2 sets forth contribution limits for multicandidate 
political committees in accordance with 2 U.S.C. 441a(a)(2). FECA, 
prior to BCRA, provided significantly higher limits on contributions to 
candidates for political committees with multicandidate status than for 
those without that status ($5,000 per election versus $1,000). BCRA 
raised and indexed for inflation the contribution limit for non-
multicandidate committees (to $2,000 per election). As the Commission 
explained in the NPRM, due to the inflation adjustment this non-
multicandidate committee limit may eventually exceed the limit imposed 
on multicandidate committees. See 2 U.S.C. 441a(c). If this occurs, it 
will create a disincentive for attaining multicandidate political 
committee status.
    In addition, BCRA increased the limit on non-multicandidate 
committee contributions to national party committees from $20,000 to 
$25,000 per year. Yet Congress did not similarly adjust the limit on 
multicandidate committee contributions to the same national party 
committees. That limit remains $15,000 per year, as it was prior to 
BCRA. 2 U.S.C. 441a(a)(1)(B) and (2)(B). Furthermore, Congress did not 
index for inflation the contribution limit for multicandidate 
committees, which means that over time the current $10,000 difference 
in the respective contribution limits to national party committees will 
increase. 2 U.S.C. 441a(c).
    In light of these statutory changes, the Commission sought comment 
on whether political committees may elect to opt out of multicandidate 
committee status even if they meet the three criteria of 2 U.S.C. 
441a(a)(4) and 11 CFR 100.5(e)(3). Two commenters addressed this 
question. One commenter asserted that the language of 2 U.S.C. 
441a(a)(4) clearly indicates that multicandidate status is 
automatically conferred when the three criteria are met. This commenter 
urged the Commission to adopt the changes to its regulations as 
proposed in the NPRM. While acknowledging the potential disadvantages 
of multicandidate status created by Congress through BCRA, this 
commenter observed that political committees may still elect to ``opt 
out'' of multicandidate status by refraining from meeting one or more 
of the three criteria (i.e., by only contributing to 4 candidates).
    On the other hand, a different commenter opposed mandatory status, 
arguing that the Commission should change its regulations to ensure 
that political committees are not forced to accept multicandidate 
status if they do not perceive that status as beneficial. The criteria 
in 2 U.S.C. 441a(a)(4), this commenter asserted, were ``selected by 
Congress to identify committees entitled to preferred treatment'' 
because ``it believed that committees with these attributes were less 
likely to be employed by individuals for the purpose of circumventing 
the individual contribution limit.'' This commenter agreed with the 
Commission's assessment in the NPRM that post-BCRA multicandidate 
status could become a liability, rather than a benefit, in some 
circumstances. Therefore, this commenter cautioned that multicandidate 
status should not be mandatory unless the Commission is ``extremely 
confident'' that Congress now intends to disadvantage multicandidate 
committees.
    The Commission notes that Congress did not take certain steps with 
regard to multicandidate committees that it took with regard to other 
political committees and individuals, such as indexing contribution 
limits for inflation and increasing the contribution limit to national 
party committees. The Senator who offered the amendment to increase the 
contribution limits for non-multicandidate committees explained its 
purpose shortly before the Senate voted to approve the BCRA in its near 
final form:

    The Thompson-Feinstein amendment, by increasing the limit on 
individual and national party committee contributions to Federal 
candidates, will reduce the need for raising campaign funds from 
political action committees, PACs. Our amendment, therefore, will 
reduce the relative influence of PACs, making it easier to replace 
PAC monies with funds raised from individual donors.

148 Cong. Rec. S2154 (daily ed. Mar. 20, 2002) (statement of Sen. 
Feinstein).

    Accordingly, the final rules adopt the approach that best comports 
with the plain language of 2 U.S.C. 441a(a)(4): A political committee 
becomes a multicandidate committee once it has been registered with the 
Commission or Secretary of the Senate for a period of not less than six 
months, has received contributions from more than 50 persons, and has 
made contributions to 5 or more candidates for Federal office. 
Specifically, the Commission is adding a sentence to 11 CFR 110.2(a) to 
confirm this result. To address situations where a multicandidate 
political committee achieves multicandidate status through affiliation 
with a pre-existing multicandidate committee, the Commission is adding 
additional language to 11 CFR 110.2(a)(3) to specify that both 
affiliated committees would automatically be multicandidate committees 
at the time of affiliation.
    It is important to note that the only ``disadvantage'' that 
multicandidate committees currently face is the lower limit on 
contributions to national political party committees. Notwithstanding 
the latter commenter's assertions that ``[t]his unexplained different 
treatment is more likely the result of a political compromise than it 
is a product of a considered judgment,'' Congress clearly set lower 
limits even before BCRA for multicandidate committee contributions to 
national party committees than for other political committees' 
contributions to national party committees. The multicandidate 
committee contribution limits with respect to all Federal candidates, 
however, still remain $3,000 per election higher than the contribution 
limits for other political committees. To the extent that some future 
disadvantage actually emerges from the fact that multicandidate 
committee contribution limits are not indexed for inflation, it would 
be for Congress to reconsider the contribution limits it established. 
The Commission has submitted a legislative recommendation urging 
Congress to do so. FEC Annual Report 2002, at 46. At present, the 
Commission implements what it deems the most straightforward reading of 
the language of 2 U.S.C. 441a(a)(4).
    The same commenter also noted, under current law, State party 
committees are automatically treated as multicandidate committees 
regardless of whether they make contributions to five

[[Page 64515]]

or more candidates. See 11 CFR 100.5(e)(3). Thus, a State party 
committee could be negatively impacted to the same extent as other 
multicandidate committees by Congress's conspicuous choice to index one 
set of contribution limits to inflation but not the limits of 
multicandidate committees. The commenter urged the Commission to permit 
State party committees to opt out of multicandidate committee status 
for the same reasons set forth above. The Commission declines to do so 
for the reasons explained above.

11 CFR 110.5(c) Application of the Aggregate Biennial Contribution 
Limitation for Individuals

    Prior to BCRA, total contributions by an individual were limited to 
$25,000 in any calendar year. Also, any contribution made to a 
candidate with respect to an election in a year other than the calendar 
year in which the election is held was considered to be made during the 
calendar year in which the election is held. 2 U.S.C. 441a(a)(3) 
(2001). Thus, when individuals made contributions to candidates for 
elections to be held in years after the calendar year the contribution 
was made, those contributions counted against the contributor's $25,000 
annual contribution limit for the year of the future election, instead 
of the year the contribution was actually made. The Commission 
implemented this statutory provision in 11 CFR 110.5(c).
    After BCRA, section 441a(a)(3) provides that contributions made in 
a specified two-year period (i.e., ``the period which begins on January 
1 of an odd-numbered year and ends on December 31 of the next even-
numbered year'') may not exceed $37,500, in the case of contributions 
to candidates and the authorized committees of candidates, and $57,500 
in the case of other contributions. Also, in BCRA, Congress removed the 
language of former section 441a(a)(3) that treated some contributions 
as made in a year other than the year in which actually made (i.e., the 
year the election is held).
    In the NPRM, the Commission noted that, despite these statutory 
changes, it had retained 11 CFR 110.5(c) when it revised section 110.5 
in 2002 after passage of BCRA. See Contribution Limitations and 
Prohibitions; Final Rules, 67 FR 69,928 (November 19, 2002). The NPRM 
proposed to amend section 110.5(c) to state that, for purposes of the 
biennial contribution limits in section 441a(a)(3) and 11 CFR 110.5(b), 
a contribution to a candidate will be attributed to the two-year period 
in which the contribution is actually made, regardless of when the 
election with respect to which it is made is held. 68 FR 50,488, 
50,490.
    In the final rules, the Commission has bifurcated 11 CFR 110.5(c) 
into two paragraphs. New paragraph (c)(1) of section 110.5 applies to 
contributions made on or after January 1, 2004. The Commission chose 
this date for two reasons. First, beginning the operation of the new 
rule with the new year will minimize confusion. Second, it will insure 
that the change will occur at the beginning of a reporting period for 
most filers. The final rule is otherwise the same as the proposed rule 
in the NPRM. New paragraph (c)(2) applies to contributions made before 
January 1, 2004. It otherwise is the same as the rule in previous 11 
CFR 110.5(c). New paragraph (c)(2) is included in the final rules to 
preclude any question of the retroactive application of paragraph 
(c)(1) to contributions made before the effective date of the 
regulation in reliance on the Commission's previous interpretation of 
post-BCRA section 441a(a)(3).
    For example, under new paragraph (c)(1) of section 110.5, a 
contribution made in 2004 to a candidate in a 2006 Senate race is 
attributed to the individual's biennial limit for the 2003-2004 period. 
Similarly, a contribution made in 2005 to a candidate in the 2008 
presidential race is attributed to the individual's biennial limit for 
the 2005-2006 period. In addition, a contribution made during 2007 to 
retire debt from a 2006 House election is attributed to the 
individual's biennial limit for the 2007-2008 period. Under new 
paragraph (c)(2), as under the previous language of 11 CFR 110.5(c), a 
contribution made in 2003 to a candidate in a 2006 Senate race would be 
attributed to the individual's biennial limit for the 2005-2006 period.
    There was no consensus among the commenters in response to the 
NPRM. One commenter supported the Commission's proposals, stating that 
the language of section 441a(a)(3) as amended ``plainly attributes 
candidate contributions by individuals to the aggregate limit for the 
two-year period in which such contributions are actually made.'' This 
commenter opined that ``conforming the FEC's regulation [at section 
110.5(c)] to the revised statute's clear requirement that individuals' 
hard money contributions to candidates tally against their aggregate 
limit for the two-year period in which such contributions are actually 
made would eliminate the confusion (and inadvertent donor violations) 
that prevailed under the previous approach.'' As such, this commenter 
asserts that the NPRM's proposed change would lessen, not increase 
confusion.
    On the other hand, several commenters were opposed to the NPRM's 
proposed changes. Some commenters asserted that confusion will ensue 
for both contributors and recipient candidates. A commenter observed 
that if the proposed changes were made, contributors may have multiple 
contributions to the same candidate that would count toward different 
biennial limits and this may be very confusing to contributors. To 
mitigate any confusion, the Commission has decided to continue to apply 
the previous rule prior to January 1, 2004, and to apply the new rule 
on and after that date. This approach ensures that the new rules will 
not have retroactive application.
    Some comments asserted that the Commission should not penalize 
donors who may have inadvertently exceeded the $37,500 limit for the 
2003-04 two-year period, to the extent that the donor exceeded the 
limit as a result of contributions made before the effective date of 
the Commission's proposed new rule to candidates that are not running 
in the 2003-04 two-year period. Because the Commission's final rule 
does not change the treatment of contributions made prior to the 
effective date of the new rule, contributors will not have 
inadvertently exceeded the $37,500 limit for the 2003-04 two-year 
period based on the Commission's new rules.
    Several commenters focused on the reliance interest that 
contributors, candidates and political committees have in the current 
language of section 110.5(c), and suggested either a deferred effective 
date for the new rule (e.g., January 1, 2005), or adoption of a 
transition rule that fairly treats those who have reasonably relied 
upon the existing regulation. Commenters asserted that a deferred 
effective date is needed because changing the rule in the middle of an 
election cycle could cause inadvertent violations. In its final rule 
for Sec.  110.5(c), the Commission accommodates contributors' reliance 
interest by preserving the previous language of section 110.5(c) for 
contributions made prior to January 1, 2004. However, the Commission 
does not interpret section 441a(a)(3), as amended by BCRA, to permit a 
transition period. The Commission is also concerned that any transition 
period is likely to engender additional confusion.
    Some comments suggested that current section 110.5(c) is primarily 
related to candidates for the U.S. Senate, and that changing the 
provision would have an adverse impact on Senate

[[Page 64516]]

candidate fundraising, because the proposed rule will limit a Senator's 
ability to raise funds in the first four years of his or her term. For 
example, a contributor who intends to contribute $37,500 every biennial 
period may be disinclined to contribute to a 2006 candidate during the 
2004 election cycle if it counts against his or her 2004 aggregate 
biennial limit rather than the 2006 cycle limit. The Commission has 
considered these comments, but observes that it is required to respond 
to Congress's changes to section 441a(a)(3), and must give effect to 
Congress's deletion of the statutory provision on which the regulatory 
provision was based.
    A commenter asserted that the Commission should not, before the 
effective date of the new rule, count contributions made to a candidate 
not running in the 2003-04 two-year period against the donor's 
aggregate limit for the cycle in which the candidate is running, 
asserting that such an application of the limit would ``clearly be 
contrary to section 441a(a)(3)(A).'' The Commission observes that under 
the previous language of section 110.5(c), a contribution made to a 
candidate not running in the 2003-04 two-year period was counted 
against the donor's aggregate limit for the two-year period in which 
the candidate is running. This comment suggests, in effect, that the 
Commission ignore, or suspend the operation of, the previous language 
of section 110.5(c) for contributions made before January 1, 2004. The 
Commission declines to either ignore or suspend the operation of the 
previous language of section 110.5(c) for contributions made before 
January 1, 2004.

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

    The attached rules will not have a significant economic impact on a 
substantial number of small entities. The basis of this certification 
is that State and local party committees of the two major political 
parties and most other political committees are not small entities 
under 5 U.S.C. 601 because they are not small businesses, small 
organizations, or small governmental jurisdictions. Further, individual 
citizens operating under these rules are not small entities.
    To the extent that any persons subject to these rules may fall 
within the definition of ``small entities,'' these rules do not impose 
a significant economic impact on those persons. These rules do not 
change the criteria for status as a multicandidate committee; they 
merely confirm that this status acquired automatically when the 
existing criteria are met. The one modified filing requirement merely 
replaces a similar filing requirement that is removed, and no new 
compliance efforts are required. The remainder of the final rules are 
conforming changes updating existing regulations to new contribution 
limits set by Congress. As such, these updates require no new or 
increased disclosure, or other requirements that would increase 
compliance costs.

List of Subjects

11 CFR Part 102

    Political committees and parties, Reporting and recordkeeping 
requirements.

11 CFR Part 110

    Campaign funds, Political committees and parties.

0
For the reasons set out in the preamble, the Federal Election 
Commission is amending subchapter A of chapter 1 of title 11 of the 
Code of Federal Regulations as follows:

PART 102--REGISTRATION, ORGANIZATION, AND RECORDKEEPING BY 
POLITICAL COMMITTEES (2 U.S.C. 433)

0
1. The authority citation for part 102 continues to read as follows:

    Authority: 2 U.S.C. 432, 433, 434(a)(11), 438(a)(8), 441d.


0
2. Section 102.2 is amended by revising paragraph (a)(3) to read as 
follows:


Sec.  102.2  Statement of organization: Forms and committee 
identification number (2 U.S.C. 433(b), (c)).

    (a) * * *
    (3) A committee shall certify to the Commission that it has 
satisfied the criteria for becoming a multicandidate committee set 
forth at 11 CFR 100.5(e)(3) by filing FEC Form 1M no later than ten 
(10) calendar days after qualifying for multicandidate committee 
status.
* * * * *

PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS

0
3. The authority citation for part 110 continues to read as follows:

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


0
4. Section 110.1 is amended by:
0
a. revising paragraph (c)(3); and
0
b. revising the introductory language in paragraph (f).
    The revisions and additions read as follows:


Sec.  110.1  Contributions by persons other than multicandidate 
political committees (2 U.S.C. 441a(a)(1)).

* * * * *
    (c) * * *
    (3) Each recipient committee referred to in 11 CFR 110.1(c)(2) may 
receive up to the $25,000 limitation from a contributor, but the limits 
of 11 CFR 110.5 shall also apply to contributions made by an 
individual.
* * * * *
    (f) Contributions to candidates for more than one Federal office. 
If an individual is a candidate for more than one Federal office, a 
person may make contributions which do not exceed $2,000 to the 
candidate, or his or her authorized political committees for each 
election for each office, as long as--
* * * * *

0
5. Section 110.2 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  110.2  Contributions by multicandidate political committees (2 
U.S.C. 441a(a)(2)).

    (a)(1) Scope. This section applies to all contributions made by any 
multicandidate political committee as defined in 11 CFR 100.5(e)(3). 
See 11 CFR 102.2(a)(3) for multicandidate political committee 
certification requirements. A political committee becomes a 
multicandidate committee at the time the political committee meets the 
requirements of 11 CFR 100.5(e)(3) or becomes affiliated with an 
existing multicandidate committee, whether or not the political 
committee has certified its status as a multicandidate committee with 
the Commission in accordance with 11 CFR 102.2(a)(3).
* * * * *

0
6. The section heading for section 110.5 is amended by removing ``bi-
annual'' and adding ``biennial'' in its place.
0
7. Section 110.5 is amended by revising paragraph (c) to read as 
follows:


Sec.  110.5  Aggregate biennial contribution limitation for individuals 
(2 U.S.C. 441a(a)(3)).

* * * * *
    (c)(1) Contributions made on or after January 1, 2004. Any 
contribution subject to this paragraph (c)(1) to a candidate or his or 
her authorized committee with respect to a particular election shall be 
considered to be made during the two-year period described in paragraph 
(b)(1) of this section in which the contribution is actually made,

[[Page 64517]]

regardless of the year in which the particular election is held. See 11 
CFR 110.1(b)(6). This paragraph (c)(1) also applies to earmarked 
contributions and contributions to a single candidate committee that 
has supported or anticipates supporting the candidate.
    (2) Contributions made prior to January 1, 2004.
    (i) For purposes of this paragraph (c)(2), a contribution to a 
candidate or his or her authorized committee with respect to a 
particular election shall be considered to be made during the calendar 
year in which such election is held.
    (ii) For purposes of this paragraph (c)(2), any contribution to an 
unauthorized committee shall not be considered to be made during the 
calendar year in which an election is held unless:
    (A) The political committee is a single candidate committee which 
has supported or anticipates supporting the candidate; or
    (B) The contribution is earmarked by the contributor for a 
particular candidate with respect to a particular election.
* * * * *

    Dated: November 7, 2003.
Bradley A. Smith,
Vice Chairman, Federal Election Commission.
[FR Doc. 03-28469 Filed 11-13-03; 8:45 am]
BILLING CODE 6715-01-P