[Federal Register Volume 68, Number 220 (Friday, November 14, 2003)]
[Proposed Rules]
[Pages 64571-64572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28473]


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FEDERAL ELECTION COMMISSION

11 CFR Parts 110, 113, 9004, and 9034

[Notice 2003-21]


Mailing Lists of Political Committees

AGENCY: Federal Election Commission.

ACTION: Notice of disposition; termination of rulemaking.

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SUMMARY: On September 4, 2003, the Commission issued a Notice of 
Proposed Rulemaking seeking comment on proposed rules that addressed 
the rental, sale, and exchange of political committee mailing lists, 
and the treatment and use of proceeds from such transactions. The 
Commission is not amending its current rules and is terminating this 
rulemaking at this time for several reasons, including the lack of 
perceived need by political committees for guidance beyond what has 
been presented in Commission advisory opinions. Further information is 
provided in the supplementary information that follows.

FOR FURTHER INFORMATION CONTACT: Ms. Mai T. Dinh, Acting Assistant 
General Counsel, or Mr. Jonathan M. Levin, Senior Attorney, 999 E 
Street, NW., Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: On September 4, 2003, the Commission issued 
a Notice of Proposed Rulemaking (``NPRM''), 68 FR 52531 (Sept. 4, 
2003). The proposed rules would have set forth the conditions under 
which the proceeds from the sale, rental, or exchange of a political 
committee's mailing list would not be contributions to that political 
committee. The proposed rules would also have prohibited the conversion 
of an authorized committee's mailing list, or any proceeds from the 
rental or sale of the list, to the personal use of the candidate or any 
other person. In addition, the proposed rules would have addressed the 
sale or rental of mailing lists owned by the authorized committee of a 
publicly funded presidential candidate. The NPRM sought comments on 
these rules generally and asked for comments as to specific aspects of 
mailing list transactions. In particular, the Commission asked for 
comment on whether the final rules should list specific factors to 
determine the usual and normal charge for the mailing lists involved in 
the transactions, and what those factors should be.
    The Commission received nine comments in response to the NPRM. 
These were from: (1) Charles R. Spies on behalf of the Republican 
National Committee; (2) Stephen M. Hoersting on behalf of the National 
Republican Senatorial Committee; (3) Donald F. McGahn II, on behalf of 
the National Republican Congressional Committee; (4) Joseph E. Sandler 
and Robert F. Bauer on behalf of the Democratic National Committee, the 
Democratic

[[Page 64572]]

Senatorial Campaign Committee, and the Democratic Congressional 
Campaign Committee; (5) William W. Hall, on behalf of the Libertarian 
National Committee; (6) Lawrence Noble and Paul Sanford on behalf of 
the Center for Responsive Politics and FEC Watch; (7) Glen Shor on 
behalf of the Campaign Legal Center; (8) Lisa J. Danetz on behalf of 
the National Voting Rights Institute; and (9) the law firm of Ryan, 
Phillips, Utrecht & MacKinnon. At the public hearing on October 1, 
2003, testimony was given by Messrs. Bauer, Hoersting, Shor, McGahn, 
and Spies, and Marc E. Elias of Perkins, Coie, LLP. The Commission 
received no written comments or testimony from list brokers or other 
persons whose business primarily involves the sale or leasing of 
mailing lists. Copies of the comments and the transcript of the hearing 
are available on the Commission's Web site at www.fec.gov.
    On November 6, 2003, the Commission voted to close the rulemaking 
on mailing lists of political committees. The Commission made this 
decision for several reasons. The written comments and oral testimony 
of a number of the commenters indicate that the regulated community 
does not perceive a need for further regulation of political committee 
mailing list transactions. In general, a number of the commenters 
believe that Commission advisory opinions, particularly Advisory 
Opinion 2002-14 (issued with respect to the rental of mailing lists of 
the Libertarian National Committee to other entities), have provided 
clear enough guidance on the conditions under which the proceeds from 
the sale or rental of mailing lists are not considered contributions to 
the political committee. The commenters expressed broad opposition to 
the proposed rules and questioned the need for such rules at this time.
    In addition, a number of commenters asserted that there are a 
significant number of factors that must be considered in determining 
the usual and normal charge and whether the transaction is commercially 
reasonable. As several commenters stated, appropriate factors may vary 
considerably depending upon the circumstances. Because the Commission 
is not currently in possession of a factual record adequate to conclude 
that a particular test is sufficiently flexible and comprehensive to 
address all circumstances to which the proposed rules would apply, the 
Commission has decided not to proceed with final rules at this time, 
and to terminate this rulemaking.

    Dated: November 7, 2003.
Bradley A. Smith,
Vice Chairman, Federal Election Commission.
[FR Doc. 03-28473 Filed 11-13-03; 8:45 am]
BILLING CODE 6715-01-P