[Federal Register Volume 79, Number 247 (Wednesday, December 24, 2014)]
[Rules and Regulations]
[Pages 77373-77374]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30222]



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  Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / 
Rules and Regulations  

[[Page 77373]]



FEDERAL ELECTION COMMISSION

11 CFR Part 110

[Notice 2014-16]


Aggregate Biennial Contribution Limits

AGENCY: Federal Election Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adopting as a final rule, without change, an 
interim rule that removed regulatory limits on the aggregate amounts 
that an individual may contribute to federal candidates and political 
committees in each two-year election cycle. The Commission is taking 
this action in light of the Supreme Court's recent decision in 
McCutcheon v. FEC, which held that the aggregate contribution limits 
are unconstitutional.

DATES: Effective December 24, 2014.

FOR FURTHER INFORMATION CONTACT: Ms. Amy L. Rothstein, Assistant 
General Counsel, or Mr. Theodore M. Lutz, Attorney, 999 E Street NW., 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530. Documents 
relating to the rulemaking record are available on the Commission's Web 
site at http://www.fec.gov/fosers (REG 2014-07 Removal of Aggregate 
Contribution Limits (McCutcheon)).

SUPPLEMENTARY INFORMATION:

Background

    The Federal Election Campaign Act, 52 U.S.C. 30101-45 (formerly 2 
U.S.C. 431-55) (``FECA''), imposes limits on the aggregate amounts that 
an individual may contribute to federal candidates, political parties, 
and other political committees during a two-year election cycle. 52 
U.S.C. 30116(a)(3) (formerly 2 U.S.C. 441a(a)(3)). The Commission had 
implemented FECA's aggregate limits in its regulations at 11 CFR 110.5.
    On April 2, 2014, the United States Supreme Court held that the 
aggregate contribution limits are unconstitutional. McCutcheon v. FEC, 
572 U.S. __, 134 S. Ct. 1434 (2014) (plurality op.). On October 17, 
2014, the Commission published an interim rule to conform its 
regulations to the McCutcheon decision. See Aggregate Biennial 
Contribution Limits, 79 FR 62335 (Oct. 17, 2014). In its interim rule, 
the Commission deleted 11 CFR 110.5 and made technical and conforming 
changes to 11 CFR 110.1(c), 110.14(d) and (g), 110.17(b), and 
110.19.\1\ Id. The Commission sought comments on these changes.
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    \1\ In an Advance Notice of Proposed Rulemaking published on the 
same day, the Commission requested comment on whether to begin a 
rulemaking to revise other regulations in light of certain language 
from the McCutcheon decision. See Aggregate Biennial Contribution 
Limits, 79 FR 62361 (Oct. 17, 2014). That notice will remain open 
for comment until January 15, 2015. Id.
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    The Commission published the interim rule without advance notice 
and comment because it fell under the ``good cause'' exception of the 
Administrative Procedure Act (``APA''), 5 U.S.C. 553(b)(B). The 
revisions were necessary to conform the Commission's regulations to the 
Supreme Court's holding that the statutory aggregate limits are 
unconstitutional. See McCutcheon, 134 S. Ct. at 1442. Because this 
action did not involve any Commission discretion or policy judgments, 
notice and comment were unnecessary. 5 U.S.C. 553(b)(B), (d)(3). A pre-
publication notice and comment period would also have been contrary to 
the public interest because the 2014 election campaigns for federal 
office were ongoing, and so the delay that would have resulted from 
such a period might have caused confusion among the public as to the 
enforceability of the regulations addressed in the interim rule.
    For the same reasons, the revisions fell within the ``good cause'' 
exception to the APA's delayed effective date provision and the 
requirements of the Congressional Review Act. 5 U.S.C. 553(d)(3), 
808(2). Moreover, because the interim rule was exempt from the APA's 
notice and comment procedure under 5 U.S.C. 553(b), the Commission was 
not required to conduct a regulatory flexibility analysis under 5 
U.S.C. 603 or 604. See 5 U.S.C. 601(2), 604(a). Nor was the Commission 
required to submit these revisions for congressional review under FECA. 
See 52 U.S.C. 30111(d)(1), (4) (formerly 2 U.S.C. 438(d)(1), (4)) 
(providing for congressional review when Commission ``prescribe[s]'' a 
``rule of law''). Accordingly, the revisions were effective upon 
publication in the Federal Register-- that is, on October 17, 2014.

Explanation and Justification

    FECA imposes two types of limits on the amount that individuals may 
contribute in connection with federal elections. The ``base limits'' 
restrict how much an individual may contribute to a particular 
candidate or political committee per election or calendar year. See 52 
U.S.C. 30116(a)(1) (formerly 2 U.S.C. 441a(a)(1)). The ``aggregate 
limits'' restrict the amounts that an individual may contribute to all 
candidate committees, political party committees, and other political 
committees in each two-year election cycle. See 52 U.S.C. 30116(a)(3) 
(formerly 2 U.S.C. 441a(a)(3)). Under the aggregate limits, as indexed 
for inflation in the 2013-14 election cycle, an individual could 
contribute up to $48,600 to candidates and their authorized committees, 
and up to $74,600 to other political committees, of which no more than 
$48,600 could be contributed to political committees other than 
national party committees. See Price Index Adjustments for Contribution 
and Expenditure Limitations and Lobbyist Bundling Disclosure Threshold, 
78 FR 8530, 8532 (Feb. 6, 2013).
    On April 2, 2014, the Supreme Court held that the aggregate 
contribution limits at 52 U.S.C. 30116(a)(3) (formerly 2 U.S.C. 
441a(a)(3)) are unconstitutional. See McCutcheon, 134 S. Ct. at 1442, 
1450-59. The Court's decision did not affect the base limits. See id. 
at 1442.
    Accordingly, in the interim rule, the Commission removed the 
regulation at 11 CFR 110.5 that implemented FECA's aggregate 
contribution limits. The Commission also made technical and conforming 
amendments to 11 CFR 110.1(c)(3) (contributions to party committees), 
110.14(d)(1) (contributions to delegates), 110.14(g)(2) (contributions 
to delegate committees), 110.17(b) (price index increases), and 110.19 
(contributions by minors).
    The Commission received three comments on the interim rule. One 
commenter argued in favor of ``limiting

[[Page 77374]]

contributions that can be made by one person/corporation'' and by non-
profit organizations. A second commenter urged the Commission to 
evaluate ``anti-corruption and small donation/public financing 
proposals,'' including those at the state and local levels, and to 
``petition the Congress and the Administration for a change.'' In 
response, the Commission notes that, as explained above, the revisions 
made in the interim rule were necessary to conform the Commission's 
regulations to the Supreme Court's holding in McCutcheon, see 134 S. 
Ct. at 1442, and did not involve any Commission discretion or policy 
judgments. The Commission is considering whether to commence a separate 
rulemaking to address other issues related to the McCutcheon decision. 
See supra n.1.
    A third comment, filed by a national party committee, supported the 
revisions made in the interim rule. The commenter agreed that the 
changes made in the interim rule were necessary to conform Commission 
regulations to the McCutcheon decision, and the commenter stated that 
the interim rule ``completely implements the McCutcheon decision.'' \2\
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    \2\ Additionally, the comment asked the Commission to take 
action in several other rulemakings that are unrelated to the final 
rule addressed here and to refrain from further revising its 
regulations in light of the McCutcheon decision.
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    Accordingly, after consideration of the comments, and for the 
reasons set forth above and in the interim rule, the Commission is 
adopting, as a final rule and without change, the revisions made to 
Commission regulations by the interim rule.

List of Subjects in 11 CFR Part 110

    Campaign funds, Political committees and parties.

PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS

    Accordingly, the interim rule amending 11 CFR part 110, which was 
published at 79 FR 62335 on October 17, 2014, is adopted as a final 
rule without change.

On behalf of the Commission,

    Dated: December 18, 2014.
Lee E. Goodman,
Chairman, Federal Election Commission.
[FR Doc. 2014-30222 Filed 12-23-14; 8:45 am]
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