[Federal Register Volume 84, Number 147 (Wednesday, July 31, 2019)]
[Proposed Rules]
[Pages 37154-37155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16240]


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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. 84, No. 147 / Wednesday, July 31, 2019 / 
Proposed Rules  

[[Page 37154]]



FEDERAL ELECTION COMMISSION

11 CFR Part 100

[Notice 2019-11]


Rulemaking Petition: Amending the Definition of Contribution To 
Include ``Valuable Information''

AGENCY: Federal Election Commission.

ACTION: Rulemaking Petition: notification of availability.

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SUMMARY: On April 29, 2019, the Federal Election Commission received a 
Petition for Rulemaking asking the Commission to amend the existing 
regulation defining ``contribution.'' The Commission seeks comments on 
the Petition.

DATES: Comments must be submitted on or before September 30, 2019.

ADDRESSES: All comments must be in writing. Commenters are encouraged 
to submit comments electronically via the Commission's website at 
http://sers.fec.gov/fosers/, reference REG 2019-01. Alternatively, 
commenters may submit comments in paper form, addressed to the Federal 
Election Commission, Attn.: Esther Gyory, Acting Assistant General 
Counsel, 1050 First Street NE, Washington, DC 20463.
    Each commenter must provide, at a minimum, his or her first name, 
last name, city, and state. All properly submitted comments, including 
attachments, will become part of the public record, and the Commission 
will make comments available for public viewing on the Commission's 
website and in the Commission's Public Records Office. Accordingly, 
commenters should not provide in their comments any information that 
they do not wish to make public, such as a home street address, 
personal email address, date of birth, phone number, social security 
number, or driver's license number, or any information that is 
restricted from disclosure, such as trade secrets or commercial or 
financial information that is privileged or confidential.

FOR FURTHER INFORMATION CONTACT: Ms. Esther Gyory, Acting Assistant 
General Counsel, or Mr. Tony Buckley, Attorney, Office of the General 
Counsel, 1050 First Street NE, Washington, DC 20463, (202) 694-1650 or 
(800) 424-9530.

SUPPLEMENTARY INFORMATION: On April 29, 2019, the Commission received a 
Petition for Rulemaking (``Petition'') from Sai, Fiat Fiendum, Inc., 
Make Your Laws PAC, Inc., and Make Your Laws Advocacy, Inc. 
(collectively ``Petitioners''). The Petitioners ask the Commission to 
amend 11 CFR part 100, subpart B, by adding a new section 100.57 to 
include within the definition of contribution certain ``valuable 
information.'' Petition at 3.
    Commission regulations define a ``contribution'' as ``any gift, 
subscription, loan . . . . advance, or deposit of money or anything of 
value made by any person for the purpose of influencing any election 
for Federal office.'' 11 CFR 100.52(a). ``Anything of value'' includes 
all in-kind contributions, such as the provision of goods and services 
without charge or at a charge that is less than the usual and normal 
charge. 11 CFR 100.52(d)(1). Commission regulations further identify 
the following as contributions: Payment for attendance at a fundraiser, 
political event, or the purchase price of a fundraising item sold by a 
political committee (11 CFR 100.53); compensation by a third party for 
personal services an individual provides unpaid to a political 
committee (11 CFR 100.54); an extension of credit, unless the extension 
is extended in the ordinary course of a person's business and under 
terms and conditions that are substantially similar to credits extended 
to nonpolitical entities (11 CFR 100.55); and anything of value given 
to a national party committee for the purchase or construction of an 
office building or facility (11 CFR 100.56).
    The Petition proposes to define ``Valuable Information'' as 
information that: (1) Is not freely available to the public; (2) is 
provided to a person regulated by the Federal Election Campaign Act, 52 
U.S.C. 30101-45 (the ``Act''), at a cost less than the market rate or 
by a person not hired by the recipient to generate such information; 
(3) would cost a non-trivial amount for the recipient to obtain at 
their own expense; and (4) is information that would likely have the 
effect of influencing any election for federal office or that parties 
or candidate committees have traditionally expended money to obtain. 
Petition at 3.
    The proposal sets out two types of ``Valuable Information'' that 
would require special treatment: ``Foreign Information'' and 
``Compromising Information.'' Id. ``Foreign Information'' would include 
any information that comes from a source that is prohibited from making 
contributions under the Act. Id. ``Compromising Information'' would 
include ``any information that could be used to blackmail or otherwise 
compromise any candidate for Federal office (including indirect 
coercion, such as of a candidate's family), regardless of source.'' Id.
    The Petition would require any person who receives ``Foreign'' or 
``Compromising Information,'' or is offered any ``Foreign'' or 
``Compromising Information,'' to notify the Commission in writing 
within three days. Petition at 3-4. Any ``Compromising Information'' 
the Commission received would have to be maintained under seal unless 
the information was otherwise available to the public, or all persons 
against whom the information could be used had consented to the 
information being made public. Id.
    Under the Petitioners' proposal, upon learning of any ``Foreign'' 
or ``Compromising Information,'' the Commission would be required, 
automatically and without a vote of the Commission, to: (1) Initiate 
investigations pursuant to 11 CFR 111.3 and 111.10; (2) provide a 
report to the Federal Bureau of Investigation; and (3) in the case of 
``Compromising Information,'' provide a report to every reasonably 
identifiable person against whom such information could be used, or 
whose private information is disclosed by such information. Id. The 
Petitioners' proposal would also require the Commission, upon learning 
of any ``Foreign'' or ``Compromising Information,'' to: (1) Immediately 
provide a report to any other law enforcement entity with likely 
jurisdiction over the matter; (2) within 14 days, publicly issue a 
report on the matter, redacting any material under seal and any 
material the disclosure of which could compromise an ongoing law 
enforcement investigation; and (3) within 30 days after the conclusion 
of

[[Page 37155]]

any law enforcement investigation, issue a public report on the matter, 
redacting any material under seal. Id.
    The Commission seeks comments on the Petition. The public may 
inspect the Petition on the Commission's website at http://sers.fec.gov/fosers/, or in the Commission's Public Records Office, 
1050 First Street NE, 12th Floor, Washington, DC 20463, Monday through 
Friday, from 9 a.m. to 5 p.m.
    The Commission will not consider the Petition's merits until after 
the comment period closes. If the Commission decides that the Petition 
has merit, it may begin a rulemaking proceeding. The Commission will 
announce any action that it takes in the Federal Register.

    On behalf of the Commission.

     Dated: July 25, 2019.
Ellen L. Weintraub,
Chair, Federal Election Commission.
[FR Doc. 2019-16240 Filed 7-30-19; 8:45 am]
 BILLING CODE 6715-01-P