[Federal Register Volume 70, Number 167 (Tuesday, August 30, 2005)]
[Proposed Rules]
[Pages 51302-51303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17156]


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FEDERAL ELECTION COMMISSION

11 CFR Parts 106 and 300

[Notice 2005-22]


State, District, and Local Party Committee Payment of Certain 
Salaries and Wages

AGENCY: Federal Election Commission.

ACTION: Reopening of comment period.

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SUMMARY: This notice reopens the comment period for a notice of 
proposed rulemaking for proposed changes to regulations regarding 
payments by State, district or local party committees for salaries and 
wages of employees who spend 25 percent or less of their compensated 
time in a month on activities in connection with a Federal election. 
The proposed changes would require these expenses to be paid using at 
least some Federal funds, consistent with the rulings of the United 
States District Court for the District of Columbia and the Court of 
Appeals for the District of Columbia Circuit in Shays v. Federal 
Election Commission.

DATES: Comments must be received on or before September 29, 2005.

ADDRESSES: All comments must be in writing, addressed to Ms. Mai T. 
Dinh, Assistant General Counsel, and submitted in either e-mail, 
facsimile or paper form. Commenters are strongly encouraged to submit 
comments by e-mail or facsimile to ensure timely receipt and 
consideration. E-mail comments must be sent to either [email protected] or 
submitted through the Federal eRegulations Portal at http://www.regulations.gov. If the e-mail comments include an attachment, the 
attachment must be in Adobe Acrobat (.pdf) or Microsoft Word (.doc) 
format. Faxed comments should be sent to (202) 219-3923, with paper 
copy follow-up. Paper comments and paper copy follow-up of faxed 
comments should be sent to the Federal Election Commission, 999 E 
Street, NW., Washington, DC 20463. All comments must include the full 
name and postal service address of the commenter or they will not be 
considered. The Commission will post comments on its Web site after the 
comment period ends.

FOR FURTHER INFORMATION CONTACT:  Ms. Mai T. Dinh, Assistant General 
Counsel, Mr. Anthony T. Buckley, 999 E Street,

[[Page 51303]]

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

SUPPLEMENTARY INFORMATION:  The Bipartisan Campaign Reform Act of 2002 
(``BCRA''), Pub. L. 107-155, 116 Stat. 81 (March 27, 2002), amended the 
Federal Election Campaign Act of 1971, as amended (the ``Act''), 2 
U.S.C. 431 et seq., by requiring State, district and local party 
committees (``State party committees'') to pay the salaries and wages 
of employees who spend more than 25 percent of their compensated time 
per month on activities in connection with a Federal election entirely 
with Federal funds.\1\ 2 U.S.C. 431(20)(A)(iv) and 441i(b)(1). However, 
BCRA is silent on what type of funds State party committees must use to 
pay the salaries and wages of employees who spend some, but not more 
than 25 percent, of their compensated time per month on activities in 
connection with a Federal election. The Commission promulgated 11 CFR 
106.7(c)(1) and (d)(1)(i), and 300.33(c)(2) to address salaries and 
wages for both types of employees. Under these rules, State party 
committees may pay the salaries or wages of employees who spend 25 
percent or less of their compensated time each month on these 
activities entirely with funds that comply with State law. Id.
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    \1\ ``Federal funds'' are funds that are subject to the 
contribution limitations, source prohibitions, and reporting 
requirements of the Act. 11 CFR 300.2(g).
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    In Shays v. FEC, 337 F. Supp. 2d 28 (D.D.C. 2004), aff'd, No. 04-
5352, 2005 WL 1653053 (D.C. Cir. July 15, 2005) (``Shays''), the 
District Court invalidated section 300.33(c)(2) because it is 
inconsistent with BCRA. See Shays, 337 F. Supp. 2d at 114; see also 
Chevron, U.S.A., Inc. v. Natural Res. Def. Council, 467 U.S. 837, 842-
43 (1984). Although the Court of Appeals affirmed the District Court's 
invalidation of the rule, its basis differed from the District Court's. 
The Court of Appeals found the Commission's justification for the rule 
did not satisfy the requirements of the Administrative Procedure Act, 5 
U.S.C. 551 et seq. Shays, No. 04-5352, slip op. at 62, 2005 WL 1653053 
(D.C. Cir. July 15, 2005).
    Before the Court of Appeals decision was issued, the Commission 
published a Notice of Proposed Rulemaking addressing State party 
committee payment of certain wages and salaries. Notice of Proposed 
Rulemaking on State, District, and Local Party Committee Payment of 
Certain Salaries and Wages, 70 FR 23072 (May 4, 2005). The NPRM offered 
several proposals as to the proportion of Federal funds that must be 
used to pay the salaries and wages of State party committee employees 
who spends 25 percent or less of their compensated time in a month on 
activities in connection with a Federal election. The comment period 
for the NPRM ended on June 3, 2005, and a hearing was held on August 4, 
2005. Written comments and a transcript of the hearing can be found at 
http://www.fec.gov/law/law_rulemakings.shtml#party_salaries.
    Witnesses at the hearing suggested that the Commission seek 
additional information that may assist the Commission in its 
decisionmaking. The Commission is reopening the comment period to allow 
all interested persons to submit information or comments that may be 
useful in this rulemaking in light of the Court of Appeals opinion.

    Dated: August 24, 2005.
Michael E. Toner,
Vice Chairman, Federal Election Commission.
[FR Doc. 05-17156 Filed 8-29-05; 8:45 am]
BILLING CODE 6715-01-P