Reporting Contributions Bundled by Lobbyists, Registrants and the PACs of Lobbyists and Registrants, 62600-62607 [E7-21711]
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(8) Option for case-by-case
determination. If the applicant does not
meet the criteria under this paragraph
(f), or does not wish to agree to the
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visa under this paragraph (f), the
applicant may elect to utilize the
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Michael Chertoff,
Secretary.
[FR Doc. E7–21841 Filed 11–5–07; 8:45 am]
BILLING CODE 9111–14–P
FEDERAL ELECTION COMMISSION
11 CFR Parts 100 and 104
[Notice 2007–23]
Reporting Contributions Bundled by
Lobbyists, Registrants and the PACs
of Lobbyists and Registrants
Federal Election Commission.
Notice of proposed rulemaking.
AGENCY:
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ACTION:
SUMMARY: The Federal Election
Commission requests comments on
proposed rules implementing new
statutory provisions regarding the
disclosure of information about bundled
contributions provided by certain
lobbyists and registrants. The proposed
rules would require authorized
committees, leadership PACs and
political committees of political parties
to disclose certain information about
lobbyists and registrants and lobbyists’
and registrants’ political committees
that provide bundled contributions. No
final decisions have been made by the
Commission on any of the proposed
regulations in this Notice. Further
information is provided in the
supplementary information that follows.
DATES: Comments must be received on
or before November 30, 2007. The
Commission will announce the date of
a hearing at a later date. Anyone seeking
to testify at the hearing must file written
comments by the due date and must
include in the written comments a
request to testify.
ADDRESSES: All comments must be in
writing, must be addressed to Ms. Amy
L. Rothstein, Assistant General Counsel,
and must be submitted in e-mail,
facsimile, or paper copy form.
Commenters are strongly encouraged to
submit comments by e-mail or fax to
ensure timely receipt and consideration.
E-mail comments must be sent to
bundling07@fec.gov. If e-mail comments
include an attachment, the attachment
must be in Adobe Acrobat (.pdf) or
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Microsoft Word (.doc) format. Faxed
comments must be sent to (202) 219–
3923, with paper copy follow-up. Paper
comments and paper copy follow-up of
faxed comments must 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.
Amy L. Rothstein, Assistant General
Counsel, or Ms. Cheryl A.F. Hemsley,
Attorney, 999 E Street, NW.,
Washington, DC 20463, (202) 694–1650
or (800) 424–9530.
SUPPLEMENTARY INFORMATION: The
Commission is proposing changes to its
rules to implement section 204 of Public
Law 110–81, 121 Stat. 735, the ‘‘Honest
Leadership and Open Government Act
of 2007,’’ signed September 14, 2007.
The new law amended the Federal
Election Campaign Act of 1971, as
amended (2 U.S.C. 431 et seq.) (‘‘the
Act’’) by requiring certain political
committees to disclose information
about each lobbyist and registrant, and
each political committee established or
controlled by a lobbyist or registrant
(‘‘lobbyist/registrant PAC’’ 1), that
forwards, or is credited with raising,
two or more bundled contributions
aggregating in excess of $15,000 during
a specific period of time.2 See 2 U.S.C.
434(i) (henceforth referred to as the
‘‘new law’’ or ‘‘new 2 U.S.C. 434(i)’’).
The Commission uses the term
‘‘lobbyist/registrant’’ to refer to
registrants and lobbyists under the
Lobbying Disclosure Act of 1995
(‘‘LDA’’).
The Commission proposes to
implement these provisions by adding a
new subparagraph to 11 CFR 100.5(e)
and adding a new section to the
1 ‘‘PAC’’ is an acronym often used to refer to a
political action committee other than an authorized
committee or a political committee of a political
party.
2 As discussed infra, the new law requires the
reporting of information about certain bundled
contributions that have been ‘‘provided’’ to certain
political committees, and defines a ‘‘bundled
contribution’’ as a contribution that is either
‘‘forwarded’’ to the political committee by a
lobbyist/registrant or lobbyist/registrant PAC, or
that is received by the political committee from the
contributor but ‘‘credited’’ to the lobbyist/registrant
or lobbyist/registrant PAC that ‘‘raised’’ it. 2 U.S.C.
434(i)(1), (8)(A). To clarify that the reporting
requirement does not apply only to contributions
that have been provided directly to a political
committee by a lobbyist/registrant or lobbyist/
registrant PAC, this NPRM describes the reporting
requirement as applying to lobbyist/registrants or
lobbyist/registrant PACs that have either forwarded,
or that have been credited with raising, bundled
contributions.
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reporting rules at 11 CFR Part 104. The
proposed reporting requirements would
apply only to authorized committees of
Federal candidates, political committees
of political parties, and political
committees directly or indirectly
established, financed, maintained or
controlled by a candidate or an
individual holding Federal office
(‘‘leadership PACs’’ 3).
I. Background
A. The Current Statutory and Regulatory
Framework
Currently, the Act and Commission
regulations impose certain reporting and
recordkeeping requirements for
contributions received and forwarded
by any person to a political committee.
Each person who receives and forwards
contributions to a political committee
must also forward certain information
identifying the original contributor. See
2 U.S.C. 432(b); 11 CFR 102.8.
Additionally, 2 U.S.C. 441a(a)(8) and
11 CFR 110.6 impose certain reporting
and recordkeeping requirements for
contributions received and forwarded
by persons known as ‘‘conduits’’ or
‘‘intermediaries’’ to the authorized
committees of Federal candidates. The
Commission is not proposing any
changes to these rules.
B. Revisions to 2 U.S.C. 434(i)—
Reporting Requirements
New 2 U.S.C. 434(i) requires
authorized committees of Federal
candidates, leadership PACs and
political committees of political parties
to disclose certain information about
any person reasonably known by the
committee to be a lobbyist/registrant or
lobbyist/registrant PAC that forwards, or
is credited with raising, two or more
bundled contributions aggregating in
excess of $15,000 to the committee
within a ‘‘covered period’’ of time. 2
U.S.C. 434(i)(1), (2), (3) and (8).
Reporting committees must disclose the
name and address of the lobbyist/
registrant or lobbyist/registrant PAC, the
lobbyist/registrant’s employer (for
individual persons), and the aggregate
amount of contributions bundled to the
committee within the covered period. 2
U.S.C. 434(i)(1).
3 The new law provides a definition of leadership
PAC that the Commission proposed to implement
as 11 CFR 100.5(e)(6) in a separate rulemaking
regarding candidate travel. See 72 FR 59953
(October 23, 2007). The Commission assumes that
a definition will be promulgated in the travel
rulemaking before these disclosure rules are
promulgated and thus, cites to 11 CFR 100.5(e)(6).
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II. Proposed Revisions to 11 CFR 100.5.
Political Committee (2 U.S.C. 432(4),
(5), (6); 2 U.S.C. 434(i)(7)(C) and (8)(B))
Currently, 11 CFR 100.5(e) provides
examples of types of political
committees. Proposed 11 CFR
100.5(e)(7) would add the term
‘‘lobbyist/registrant PAC’’ as an
example, and would define the term as
‘‘any political committee established or
controlled’’ by a lobbyist/registrant, as
defined in proposed 11 CFR
104.22(a)(3). This definition is
consistent with the new law. See 2
U.S.C. 434(i)(7)(C). Political committees
that meet this definition would have to
identify themselves as such on their
Statements of Organization. See 11 CFR
102.2(a)(1) (requiring each political
committee to disclose its name, address
and type on its Statement of
Organization). Further, the Commission
anticipates that any political committee
that is already registered with the
Commission and that fits this proposed
definition would be required to amend
its Statement of Organization to reflect
its status as a lobbyist/registrant PAC.4
The Commission requests comments
on this approach. When would a
nonconnected committee be considered
to be ‘‘controlled’’ by a lobbyist/
registrant? Is a committee whose
treasurer is a lobbyist/registrant per se
‘‘controlled’’ by the lobbyist/registrant?
What if that treasurer serves only in a
ministerial or custodial function?
As discussed further in Part III, the
law requires disclosure of bundling by
either an individual who registers as a
lobbyist under the LDA or a ‘‘registrant’’
under that Act, which includes any
organization that employs in-house
lobbyists. Thus, the Commission
proposes to define ‘‘lobbyist/registrant’’
to include both lobbyists and registrants
under the LDA. Moreover, since the SSF
of a corporation, labor organization or
other connected organization (see 11
CFR 100.6) that employs in-house
lobbyists would be, by definition,
controlled by a registrant, the
Commission proposes to include such
SSFs within the ambit of ‘‘lobbyist/
registrant PACs.’’ The Commission
requests comment on this approach.
The Commission currently requires
committees to identify themselves as
only one type of committee. See FEC
Form 1 Statement of Organization,
4 The Commission notes that this same
identification requirement would apply to political
committees that meet the definition of leadership
PAC. See 11 CFR 100.5(e)(6). In conjunction with
this rulemaking, the Commission anticipates
amending FEC Form 1, the Statement of
Organization, to include both ‘‘lobbyist/registrant
PAC’’ and ‘‘leadership PAC’’ as types of political
committees.
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Question 5 (‘‘Type of Committee (Check
One)’’). How should an organization
that is both an SSF and a ‘‘lobbyist/
registrant PAC’’ identify itself on FEC
reports? Should one type of registration
control? Alternatively, should the
Commission allow committees to
identify themselves as more than one
type of committee? Of note, allowing
multiple registrations could affect the
Commission’s current disclosure
processes.
The Commission also requests
comments on the placement of the
definition of ‘‘lobbyist/registrant PAC’’
in 11 CFR 100.5(e), ‘‘examples of
political committees,’’ as opposed to
placing this definition in proposed 11
CFR 104.22.
III. Proposed New 104.22. Disclosure of
Bundling by Lobbyist/Registrants (2
U.S.C. 434(i))
To implement the new disclosure
requirements, the Commission is
proposing to add new 11 CFR 104.22 to
its reporting regulations.
A. Definitions
1. Reporting Committee
New 2 U.S.C. 434(i) adds reporting
requirements for three types of political
committees: authorized committees of a
candidate, leadership PACs, and
political party committees. 2 U.S.C.
434(i)(6). Proposed 11 CFR 104.22(a)(1)
would define the term ‘‘reporting
committee’’ to encompass these three
types of political committees, which are
defined in 11 CFR 100.5. The
Commission requests comments on this
new term, ‘‘reporting committee.’’
2. Covered Period
New 2 U.S.C. 434(i) requires that
reporting committees disclose
information about any lobbyist/
registrant or lobbyist/registrant PAC that
forwards, or is credited with raising for
the committee, two or more bundled
contributions aggregating in excess of
$15,000 during any ‘‘covered period.’’ 2
U.S.C. 434(i)(1), (2), (3) and (8). It
defines ‘‘covered period’’ as January 1
through June 30, July 1 through
December 31 ‘‘and * * * any reporting
period applicable to the committee
under [2 U.S.C. 434] during which any
[lobbyist/registrant or lobbyist/registrant
PAC] provided two or more bundled
contributions to the committee in an
aggregate amount greater than
[$15,000].’’ 2 U.S.C. 434(i)(2).
The new law also provides the
Commission with the authority to
require reporting committees filing their
campaign finance reports more
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frequently than on a quarterly basis 5 to
disclose information about lobbyist/
registrants who provide bundled
contributions in excess of $15,000 on a
quarterly basis, rather than monthly. See
2 U.S.C. 434(i)(5)(A).
The Commission presents both a
proposed and an alternative definition
of ‘‘covered period.’’ Each definition
would exercise the Commission’s
statutory authority to place monthly
filers on the same schedule as
committees that file quarterly campaign
finance reports. 2 U.S.C. 434(i)(5)(D).
For ease of public consumption of
disclosed bundled contributions,
consistent disclosure periods would
provide the public with semi-annual
aggregate snapshots for all categories of
filers. Does the language in 2 U.S.C.
434(i)(5)(A) permit the Commission also
to require aggregate semi-annual
disclosure from these monthly filers?
Should the Commission, instead, not
exercise its statutory authority, and
require monthly filers to disclose
information about bundled
contributions on a monthly and semiannual basis? See 2 U.S.C. 434(i)(2).
a. Proposed Definition of ‘‘Covered
Period’’
Under proposed 11 CFR
104.22(a)(2)(i), the term ‘‘covered
period’’ would be the semi-annual
periods of January 1 through June 30
and July 1 through December 31.
Additionally, proposed 11 CFR
104.22(a)(2)(ii) provides that in any
calendar year in which a reporting
committee is required to file or files
monthly or quarterly campaign finance
reports, the covered period would also
include the quarterly periods of January
1 through March 31 and July 1 through
September 30 if, during those periods, a
lobbyist/registrant or a lobbyist/
registrant PAC provided two or more
bundled contributions to the reporting
committee which aggregate in excess of
$15,000.
Thus, under the proposed rule, any
committee that receives more than
$15,000 in bundled contributions from
a lobbyist/registrant or lobbyist/
registrant PAC during the first or third
calendar quarter would have to disclose
information about the bundler twice:
5 National committees of political parties
(including the national congressional campaign
committees) must report monthly in all calendar
years. See 2 U.S.C. 434(a)(4)(B); 11 CFR 104.5(c)(4).
State, district and local committees of political
parties are required to file monthly if they exceed
certain levels of Federal election activity. See 2
U.S.C. 434(e)(4); 11 CFR 300.36(c). Further, some
authorized committees of presidential candidates
are required to file monthly during presidential
election years. See 2 U.S.C. 434(a)(3); 11 CFR
104.5(b).
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once for the report covering the quarter
during which the committee received
the bundled contributions from a
lobbyist/registrant or lobbyist/registrant
PAC, and again at the end of the sixmonth period.
For example, if lobbyist/registrant
PAC Z is credited with having raised
$20,000 for a reporting committee in the
first quarter, then the reporting
committee would disclose lobbyist/
registrant PAC Z in its report covering
the first quarter as having provided
$20,000 in bundled contributions to the
committee. If, in the second quarter, the
reporting committee credits lobbyist/
registrant PAC Z with having raised
another $5,000, the reporting committee
would disclose on its semi-annual
report the entire $25,000 in bundled
contributions provided by lobbyist/
registrant PAC Z in the first two
calendar quarters. The Commission
requests comments on whether this is
the correct reading of the statutory
requirements, and whether this
duplicative reporting could lead to the
mistaken impression that lobbyist/
registrant PAC Z provided $45,000
rather than $25,000 to the committee
during the first two calendar quarters.
The Commission further requests
comments on whether there is a
statutory basis on which the
Commission might consider some
means of eliminating this duplicative
reporting. For example, is there a
statutory basis for the Commission to
consider exempting reporting
committees from having to disclose
semi-annually information about
lobbyist/registrants or lobbyist/
registrant PACs providing bundled
contributions if the information was
already fully disclosed in a prior report
filed with the Commission? Would this
approach be confusing or result in the
appearance of over-or under-reporting
the contributions bundled by lobbyist/
registrants or lobbyist/registrant PACs?
Is the Commission’s interpretation
consistent with the requirement in the
new law that the Commission ‘‘provide
for the broadest possible disclosure of
activities described in this subsection?’’
b. Alternative Definition of Covered
Period
In the alternative, the Commission
requests comments on the following
definition of ‘‘covered period.’’
Alternative 11 CFR 104.22(a)(2)(i)
would provide that in any calendar year
in which a reporting committee is
required to file or files reports on a
quarterly or monthly basis under 11
CFR 104.5, the covered period would be
defined as quarterly periods of January
1 through March 31, April 1 through
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June 30, July 1 through September 30,
and October 1 through December 31.
Under alternative 11 CFR
104.22(a)(2)(ii), in any calendar year in
which a reporting committee files semiannual reports, the covered period
would also include the semi-annual
periods of January 1 through June 30
and July 1 through December 31.
For example, if lobbyist/registrant
PAC Z is credited with having raised
$20,000 in the first quarter for a
reporting committee that files on a
monthly or quarterly basis, then the
reporting committee would disclose
lobbyist/registrant PAC Z in its report
covering the first quarter as having
provided $20,000 in bundled
contributions to the committee. If, in the
second quarter, the reporting committee
credits lobbyist/registrant PAC Z with
having raised another $5,000, the
reporting committee would not disclose
on its second quarter reports any
bundled contributions provided by
lobbyist/registrant PAC Z because the
second quarter bundled contributions
fell below the $15,000 threshold for the
second quarter reporting period. No
aggregate semi-annual reporting would
be required. The Commission requests
comments on whether this is a
permissible reading of the statutory
requirements, and whether this
alternative could lead to the under
reporting of contributions that take
place across quarterly reporting periods,
but within the semi-annual period. For
example, under this alternative, a
lobbyist/registrant or lobbyist/registrant
PAC could provide $15,000 in bundled
contributions to a reporting committee
during each calendar quarter and the
reporting committee would not have
triggered the disclosure requirement
under the new law.
Additionally, in lieu of either the
proposed rule or the alternative, the
Commission seeks comment on whether
reporting committees should report both
semi-annual and quarterly information
at the end of each semi-annual period.
If, in the example above, in the second
quarter lobbyist/registrant PAC Z
provides the reporting committee with
$25,000 (having also provided $20,000
in bundled contributions in the first
quarter), should the reporting committee
disclose that it received $45,000 for the
semi-annual period, and also disclose
that it received $25,000 for the second
quarter period?
3. Lobbyist/Registrant and Lobbyist/
Registrant PAC
The new law applies only to
contributions bundled by ‘‘a current
registrant under section 4(a) of the
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[LDA] [2 U.S.C. 1603(a)]; 6 an individual
who is listed on a current registration
filed under section 4(b)(6) of such Act
[2 U.S.C. 1603(b)(6)] or a current report
under section 5(b)(2)(C) of such Act [2
U.S.C. 1604(b)(2)(C)]; or a political
committee established or controlled by
such a registrant or individual.’’ 2
U.S.C. 434(i)(7).
Proposed 11 CFR 104.22(a)(3) would
create a new term, ‘‘lobbyist/registrant,’’
to encompass both current registrants
and individuals listed on a current
registration or report filed under the
LDA. As discussed above, the
Commission is proposing to add a
definition of ‘‘lobbyist/registrant PAC’’
at 11 CFR 100.5(e)(7).
4. Bundled Contributions
Proposed 11 CFR 104.22(a)(4)(i) and
(ii) would implement new 2 U.S.C.
434(i)(8)(A) by defining the term
‘‘bundled contribution’’ as any
contribution that a lobbyist/registrant or
lobbyist/registrant PAC forwards to the
reporting committee from the
contributor, or that the reporting
committee receives from the contributor
but credits to the lobbyist/registrant or
lobbyist/registrant PAC through records,
designations, or other means of
recognizing that a certain amount of
money has been raised by the lobbyist/
registrant or lobbyist/registrant PAC.
Under proposed 11 CFR
104.22(a)(4)(i), forwarded contributions
would satisfy the proposed definition of
‘‘bundled contributions’’ regardless of
whether the bundler receives credit
from the reporting committee. Would it
be helpful to the regulated community
for the Commission to define the term
‘‘forwarded’’ in the rule as, for instance,
‘‘arranging or causing the physical or
electronic delivery or transmission of a
contribution’’?
Under proposed 11 CFR
104.22(a)(4)(ii), a contribution must be
both received by the reporting
committee and credited to a lobbyist/
registrant or lobbyist/registrant PAC to
satisfy proposed 11 CFR 104.22(a)(4)(ii).
The mere crediting of a contribution to
a lobbyist/registrant or lobbyist/
registrant PAC would not satisfy
proposed 11 CFR 104.22(a)(4)(ii) if the
contribution is not received. In the
alternative, should the amount credited
control? With respect to these
6 The Web sites of the Secretary of the Senate and
the Clerk of the House of Representatives provide
the following guidance regarding who is a
‘‘registrant’’: A lobbying firm or an organization
employing in-house lobbyists that files a
registration pursuant to Section 4 of the Lobbying
Disclosure Act of 1995. See https://www.senate.gov/
legislative/common/briefing/
lobby_disc_briefing.htm#3; https://
lobbyingdisclossure.house.gov/lda_guide.html.
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contributions, should the rule apply to
in-kind contributions as well?
Proposed 11 CFR 104.22(a)(4)(iii)
states that bundled contributions do not
include contributions from the personal
funds of the bundling person or that
person’s spouse. This provision would
be consistent with the new law, which
excludes contributions made to the
reporting committee by the lobbyist/
registrant or lobbyist/registrant’s spouse
from counting towards the $15,000
reporting threshold. See 2 U.S.C.
434(i)(3)(A).
Proposed 11 CFR 104.22(a)(5)
provides that the term ‘‘candidate
involved’’ means, for authorized
committees, the candidate for whom the
committee is authorized; and for
leadership PACs, the candidate or
individual holding Federal office who
directly or indirectly establishes,
maintains, finances or controls the
leadership PAC. This is consistent with
the language of the new law in
describing who would credit, designate
or otherwise recognize a lobbyist/
registrant or lobbyist/registrant PAC
with having raised contributions in
excess of $15,000 during the covered
period. See 2 U.S.C. 434(i)(8)(A)(ii). The
Commission requests comments on
whether the proposed provision would
be helpful in providing guidance to the
regulated community.
As noted above, the proposed
definition of ‘‘lobbyist/registrant’’
includes current registrants under
section 4(a) of the LDA (2 U.S.C.
1603(a)). Such registrants are primarily
organizations that employ one or more
lobbyists.
Does the new law cover bundled
contributions provided by employees
and agents of organizations that are
registrants, when those individuals are
not themselves lobbyist/registrants? Can
an organization that is prohibited from
making contributions, such as a
corporation or a labor organization, but
nonetheless is a registrant, be credited
with having raised contributions?
There is seemingly some incongruity
in statements made by some of the new
law’s supporters and the section-bysection analysis of the legislation
provided by the three principal Senate
authors of the bill (the ‘‘section-bysection analysis’’). See 153 CONG. REC.
S10709 (daily ed. August 2, 2007). For
example, in a colloquy on the Senate
floor, Senator Feingold and Senator
Obama indicated that the disclosure
requirement would be triggered by
contributions bundled by an employee
of a lobbyist, if that employee is acting
as an agent of the lobbyist, even if the
employee is not listed on a current
registration or report filed under the
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LDA. 153 CONG. REC. S10699 (daily ed.
Aug. 2, 2007) (statements of Sen.
Feingold and Sen. Obama). On the other
hand, the section-by-section analysis
states that the statute ‘‘covers only
contributions credited to registered
lobbyists.’’ 153 CONG. REC. S10709
(daily ed. Aug. 2, 2007). The
Commission requests comments on
whether the new requirements should
cover employees who are agents of
lobbyist/registrants or lobbyist/
registrant PACs, even if such
individuals are not listed as registered
lobbyists under the LDA. How should
the Commission give content to the
statutory requirement that bundling by
registrant organizations be disclosed?
In addition, how should the new law
be applied with regard to crediting
multiple lobbyist/registrants or lobbyist/
registrant PACs involved in a single
fundraiser? In a statement on the Senate
floor, Senator Feingold stated that
‘‘when two or more lobbyists are jointly
involved in providing the same bundled
contributions—as for instance, in the
case of a fundraising event co-hosted by
two or more lobbyists—then each
lobbyist is responsible for and should be
treated as providing the total amount
raised at the event for purposes of
applying the applicable threshold to the
funds raised by that lobbyist’’ and for
reporting purposes. 153 CONG. REC.
S10699 (daily ed. August, 2, 2007)
(statement of Sen. Feingold). Thus, the
Commission requests comments on how
multiple hosts of a fundraiser should be
credited by the reporting committee. For
example, if three lobbyist/registrants
jointly co-host a fundraiser that raises
$20,000 in contributions for Senator X,
should each of the three co-hosts be
deemed to have raised the entire
$20,000 for reporting purposes? Would
this approach be misleading or
inaccurate from a disclosure
perspective? Should the sum total
instead be prorated among the three cohosts?
Proposed 11 CFR 104.22(a)(6) would
explain the meaning of ‘‘designations or
other means of recognizing.’’ The
proposed rule provides that
‘‘designations or other means of
recognizing’’ a lobbyist/registrant or
lobbyist/registrant PAC’s fundraising
would include ‘‘titles based on levels of
fundraising, access to events reserved
exclusively for those who generate a
certain level of contributions, or similar
benefits provided as a reward for
successful fundraising.’’ The
Commission requests comments on this
approach and also requests other
examples of records, designations or
other means of recognizing a lobbyist/
registrant or lobbyist/registrant PAC’s
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fundraising. Should service by an
individual on a host committee of a
fundraising event serve as ‘‘designation
or other means of recognizing that a
certain amount of money has been
raised by the person’’? Should honorary
titles within the reporting committee be
deemed a ‘‘designation or other means
of recognizing that a certain amount of
money has been raised by the person’’?
See 153 CONG. REC. 510699 (daily ed.
Aug. 2, 2007) (statement of Sen.
Obama); id. at 510709. Would such an
approach encompass individuals who
have no actual role in fundraising?
Further, would any ‘‘other means of
recognizing’’ have to be designated in
writing?
The legislative history provides other
guidance that the Commission has not
proposed as a part of new 11 CFR
104.22(a)(4). In a statement on the
Senate floor, Senator Feingold noted
that a reporting committee must know
that a lobbyist/registrant or lobbyist/
registrant PAC has raised a certain
amount, not just be generally aware that
the lobbyist/registrant or lobbyist/
registrant PAC has been fundraising.
Should the Commission include a
similar interpretation in the concept of
credited?
B. Reporting Requirement
1. Required Disclosure
Proposed 11 CFR 104.22(b), consistent
with the new law, requires reporting
committees to disclose on a new form
certain information about any person
reasonably known to be a lobbyist/
registrant or lobbyist/registrant PAC that
forwards, or is credited with raising,
two or more bundled contributions in
excess of $15,000 to the reporting
committee during the covered period. 2
U.S.C. 434(i)(1). Specifically, the
reporting committee must disclose the
name of the lobbyist/registrant or
lobbyist/registrant PAC, the address of
the lobbyist/registrant or lobbyist/
registrant PAC, the employer of the
lobbyist/registrant who provided the
bundled contributions (for individual
lobbyist/registrants), and the amount of
bundled contributions provided during
the covered period. Id.
In conjunction with this rulemaking,
the Commission intends to create a new
form for disclosing information about
lobbyists and lobbyist PACs that
provide bundled contributions. The
form would be filed with the Form 3
(House and Senate authorized
committees), Form 3P (Presidential
authorized committees) and Form 3X
(leadership PACs and political party
committees) following the appropriate
covered period.
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2. Reasonably Known To Be
The new law requires the disclosure
of information about a person who
forwards, or who is credited with
having raised, two or more bundled
contributions aggregating in excess of
$15,000 during the covered period if the
person is ‘‘reasonably known by the
[reporting] committee to be’’ a lobbyist
/registrant or a lobbyist/registrant PAC.
2 U.S.C. 434(i)(1). The new law requires
the Commission to ‘‘provide guidance to
[reporting] committees with respect to
whether a person is reasonably known
by a committee to be’’ a lobbyist/
registrant or lobbyist/registrant PAC. 2
U.S.C. 434(i)(5)(B). In so doing, the
Commission is to include a
‘‘requirement that [reporting]
committees consult the Web sites
maintained by the Secretary of the
Senate and the Clerk of the House of
Representatives containing information
filed pursuant to the Lobbying
Disclosure Act of 1995.’’ 2 U.S.C.
434(i)(5)(B).
Proposed 11 CFR 104.22(b)(2) would
provide guidance with respect to how a
reporting committee is to comply with
these requirements. This paragraph
directs the committee to consult the
Web sites maintained by the Clerk of the
House of Representatives, the Secretary
of the Senate, and the Federal Election
Commission in order to determine
whether a person is identified on a
filing under the LDA or the Act as a
registrant, a lobbyist, or a political
committee established or controlled by
a registrant or lobbyist.
The Commission seeks comment on
these proposed regulations. Does the
regulatory text adequately implement
the statutory requirements? May the
Commission require committees to
consult the Commission’s Web site for
information regarding registration of
lobbyist/registrant PACs, since that
information is not currently available on
the Web sites of the Secretary of the
Senate or the Clerk of the House of
Representatives?
The Commission requests comments
on what other guidance the Commission
might issue as to how a reporting
committee can reasonably know that a
bundler of contributions is a lobbyist/
registrant or lobbyist/registrant PAC.
What other steps could the Commission
take to make information regarding
lobbyist/registrant PACs more easily
accessible?
C. Where To File
Under current 11 CFR Part 105,
authorized committees of candidates for
the House of Representatives, the
principal campaign committees of
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Presidential candidates, and any other
political committees that support such
candidates must file their regular
campaign finance reports with the
Commission. See 11 CFR 105.1, 105.3
and 105.4. Authorized committees of
candidates for the Senate and any other
political committees that support only
Senate candidates must file their reports
with the Secretary of the Senate. See 11
CFR 105.2. Proposed 11 CFR 104.22(c)
would require the form required by the
new law to be filed in accordance with
11 CFR Part 105. The Commission
requests comments on this proposal.
D. When To File
New 2 U.S.C. 434(i)(1) requires
reporting committees to file a form
listing information about each lobbyist/
registrant or lobbyist/registrant PAC
with ‘‘the first report required to be filed
under this section after each covered
period’’ in which a lobbyist/registrant or
lobbyist/registrant PAC provided
bundled contributions exceeding
$15,000. 2 U.S.C. 434(i)(a)(1). As noted
above, the proposed rule defines
‘‘covered period’’ as the semi-annual
periods of January 1 through June 30
and July 1 through December 31.
Additionally, proposed 11 CFR
104.22(a)(2)(ii) provides that in any
calendar year in which a reporting
committee is required to file or files
monthly or quarterly campaign finance
reports under 11 CFR 104.5, the covered
period would also include the quarterly
periods of January 1 through March 31
and July 1 through September 30 if,
during those periods, a lobbyist/
registrant or a lobbyist/registrant PAC
provided two or more bundled
contributions to the reporting committee
which aggregate in excess of $15,000.
Thus, proposed 11 CFR 104.22(d) would
require a reporting committee to file a
form semi-annually in every calendar
year, and in the calendar quarters of
January 1 through March 31 and July 1
through September 30 if any lobbyist/
registrant or lobbyist/registrant PAC
forwarded, or was credited with having
raised, two or more bundled
contributions aggregating in excess of
$15,000 during those calendar quarters.
The Commission requests comments
on proposed 11 CFR 104.22(d).
As discussed above, the alternative
definition of ‘‘covered period’’ would
require reporting committees to disclose
information about lobbyist/registrants or
lobbyist/registrant PACs that provide
bundled contributions on a slightly
different schedule than that under the
proposed rule. Under alternative 11 CFR
104.22(a)(2)(i), monthly and quarterly
filers would be required to file,
concurrently with their campaign
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finance reports filed in April, July,
October and January, a form listing any
lobbyist/registrant or lobbyist/registrant
PAC that provided bundled
contributions aggregating in excess of
$15,000 during the previous calendar
quarter. Further, in any calendar year in
which a reporting committee files its
campaign finance reports on a semiannual basis, the committee would
concurrently file its form disclosing
information about any lobbyist/
registrant or lobbyist/registrant PAC that
provided bundled contributions in
excess of $15,000 during the semiannual covered period. The Commission
requests comments on the effect of the
alternative ‘‘covered period’’ on report
timing.
Reporting Hypotheticals
The following examples illustrate
how proposed 11 CFR 104.22 would
interact with the Commission’s existing
reporting requirements for forwarded
contributions.
The first hypothetical involves the
authorized committee of a candidate as
the reporting committee and thus, also
invokes 11 CFR 110.6 regarding
earmarking contributions to authorized
committees, if the person earmarking
the contributions qualifies as a
‘‘conduit’’ under that section.
The second hypothetical involves
either a leadership PAC or a political
party committee as the reporting
committee. This hypothetical would not
invoke 11 CFR 110.6 because that
section applies only to contributions
earmarked for an authorized committee.
Hypothetical Example 1
Facts.
Candidate A’s authorized committee files
campaign finance reports on a quarterly
basis.
On February 20, Lobbyist/Registrant Z
delivers a $30,000 check to Candidate A’s
treasurer, representing fifteen $2,000
contributions that Lobbyist/Registrant Z
collected on February 15 on behalf of
Candidate A. Lobbyist/Registrant Z also
provides a list of each contributor’s name,
mailing address, employer and occupation,
and the date received by Lobbyist/Registrant
Z as required under 11 CFR 110.6(c)(1)(iii)
and (iv).
On March 21, Lobbyist/Registrant Z,
although he does not occupy a significant
position in Candidate A’s campaign,7 hosts a
fundraiser on Candidate A’s behalf, at which
Candidate A makes a speech. At the
fundraiser, five contributors hand checks
totaling $10,000 directly to Candidate A.
On June 5, Lobbyist/Registrant Z delivers
to the authorized committee five checks
7 An individual who occupies a significant
position within a campaign may be exempt from the
earmarking regulations. See 11 CFR
110.6(b)(2)(i)(E).
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totaling $6,000 that he collected on
Candidate A’s behalf during the preceding
week.
Reporting Requirements.
1. On the committee’s first quarterly
campaign finance report, it must:
a. Pursuant to 11 CFR 110.6, report:
i. The name, mailing address, occupation
and employer of Lobbyist/Registrant Z.
ii. As a memo entry, the total amount of
contributions forwarded by Lobbyist/
Registrant Z ($30,000), the date received by
the committee (February 20) and a notation
of whether the Lobbyist/Registrant’s
contribution limit was affected or not
pursuant to 11 CFR 110.6(d).
iii. The name, mailing address, employer,
occupation of each contributor, as well as the
date that Lobbyist/Registrant Z received the
contributions (February 15) and a notation
that it was earmarked through him.
This reporting requirement is triggered by
Lobbyist/Registrant Z’s having acted as a
conduit under 11 CFR 110.6 for the
contributions that he received on February 15
and delivered on February 20, because he
physically forwarded the contributions to the
authorized committee.
b. Pursuant to 11 CFR 104.3, report for
each of the five contributors who made
contributions at the March 21 fundraiser: The
person’s name, mailing address, occupation,
and employer, date received (March 21) and
amounts, itemizing the contributions as
necessary under 11 CFR 104.3.
c. Pursuant to proposed 11 CFR 104.22,
report the name, address and employer of
Lobbyist/Registrant Z, as well as the total
amount bundled by Lobbyist/Registrant Z,
$40,000, during the covered period. This
reporting requirement is triggered because
Lobbyist/Registrant Z forwarded, or was
credited with raising, more than $15,000 in
contributions during the committee’s
reporting period (the calendar quarter).
2. On the authorized committee’s second
quarterly campaign finance report, it must:
a. Pursuant to 11 CFR 110.6, report:
i. The name, mailing address, occupation
and employer of Lobbyist/Registrant Z.
ii. As a memo entry, the total amount of
contributions forwarded to the committee by
Lobbyist/Registrant Z ($6,000) and the date
received by the authorized committee (June
5).
iii. The name, mailing address, employer
and occupation of each contributor, the date
each contribution was received by Lobbyist/
Registrant Z and whether the contributions
affected Lobbyist/Registrant Z’s contribution
limits pursuant to 11 CFR 110.6(d).
Lobbyist/Registrant Z is a conduit under 11
CFR 110.6, because he collected and
forwarded the contributions to the authorized
committee. Thus, the authorized committee
disclosed his contributions in a manner
similar to hypothetical 1.a., above.
b. Pursuant to proposed 11 CFR 104.22, file
a form disclosing the lobbyist/registrant’s
name, address and employer, as well as the
aggregate amount of bundled contributions
that the committee received from or credited
to Lobbyist/Registrant Z during the sixmonth covered period ($46,000). While the
aggregate amount of contributions forwarded
or raised by and credited to Lobbyist/
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Registrant Z did not exceed $15,000 during
the committee’s second quarterly reporting
period, the aggregate amount of bundled
contributions provided by Lobbyist/
Registrant Z during the January 1 through
June 30 semi-annual covered period, $46,000,
does exceed the $15,000 reporting threshold
for that covered period.
Hypothetical Example 2
Facts.
A leadership PAC files campaign finance
reports on a monthly basis.8
On February 20, lobbyist/registrant PAC X
delivers a check to the leadership PAC for
$30,000, representing contributions to the
leadership PAC from fifteen individual
contributors, along with information about
each contributor as required under 11 CFR
110.6(c)(1)(iii) and (iv).
On March 12, lobbyist/registrant PAC X
hosts a fundraiser at which the ‘‘candidate
involved’’ with the leadership PAC makes a
speech. Between March 13 and March 31, the
leadership PAC receives 6 checks aggregating
to $12,000. Each check notes that the
contributor is helping the leadership PAC
because of the speech given at the March 12
fundraiser. The leadership PAC thanks the
contributors and also sends a note to
lobbyist/registrant PAC X recognizing it for
having raised the $12,000.
Reporting Requirements
1. On the leadership PAC’s campaign
finance report covering February, it must:
a. Pursuant to 11 CFR 104.3 and 104.8,
report for each of the fifteen contributors who
made the contributions delivered by lobbyist/
registrant PAC X on March 20: The person’s
name, mailing address, occupation,
employer, and date of receipt by lobbyist/
registrant PAC X, itemizing the contributions
as necessary under 104.8.
2. On the leadership PAC’s campaign
finance report covering March, it must:
a. Pursuant to 11 CFR 104.3 and 104.8,
report for each of the six contributions that
make up the $12,000 that the leadership PAC
received directly from contributors and
credited to lobbyist/registrant PAC X: The
person’s name, mailing address, occupation,
employer, and the date of receipt by lobbyist/
registrant PAC X itemizing the contributions
as necessary under 11 CFR 104.8.
b. Pursuant to proposed 11 CFR 104.22,
include a separate form disclosing lobbyist/
registrant PAC X’s name and address, and,
the total amount of bundled contributions
that lobbyist/registrant PAC X provided to
the leadership PAC during the first calendar
quarter. This form would be required because
the aggregate amount of bundled
contributions provided by lobbyist/registrant
PAC X exceeds $15,000 during the
unauthorized committee’s covered period of
January 1 through March 31.
The Commission requests comments
on these hypotheticals.
E. Recordkeeping
Current Commission regulations
implement certain statutory
8 The same hypothetical applies to a political
party committee.
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62605
recordkeeping requirements that also
apply to certain bundled contributions.
For example, committees must keep a
record and account of each contribution
exceeding $50 for three years after filing
the report to which the record or
account relates. See 2 U.S.C. 432(c)(2)
and (d); 11 CFR 102.9(a) and (c). In
addition, any person who receives and
forwards contributions to any political
committee must also forward certain
information about the original
contributor. See 2 U.S.C. 432(c) and
434a(a)(8); 11 CFR 102.8(c). Any
authorized committee that receives
contributions forwarded by a ‘‘conduit’’
is subject to additional recordkeeping
and reporting requirements. See 2
U.S.C. 434a(a)(8); 11 CFR 110.6(c).
Therefore, the Commission proposes
new 11 CFR 104.22(e), which refers to
the existing recordkeeping requirements
in Commission regulations and also
requires reporting committees to
maintain for three years records of
information about any lobbyist/
registrant or lobbyist/registrant PAC that
forwards, or is credited with raising,
two or more bundled contributions
aggregating in excess of $15,000 during
any covered period. These records
would include the name and address of
the lobbyist/registrant or lobbyist/
registrant PAC, the employer of the
lobbyist/registrant (if an individual), the
dates contributions are received and
forwarded, and the aggregate amount of
contributions bundled for each covered
period.
The Commission would urge
reporting committees to begin keeping
records of lobbyist/registrants or
lobbyist/registrant PACs who forward,
or are credited with raising, bundled
contributions as of January 1, 2008. Any
rules promulgated by the Commission
will likely become effective in early
2008, making the first semi-annual
reporting period cover January 1
through June 30, 2008.
The Commission requests comments
on this approach.
F. Price Index Increase
New 2 U.S.C. 434(i)(3)(b) requires that
the $15,000 disclosure threshold be
indexed for inflation annually, using the
Consumer Price Index as verified by the
Secretary of Labor. The proposed rule at
11 CFR 104.22(f) would require that the
$15,000 disclosure threshold be indexed
in the same manner as certain
contribution limits under the Act and
Commission regulations. See 2 U.S.C.
441a(c) and 11 CFR 110.17. The
Commission proposes regulatory
language that is identical to that already
in portions of 11 CFR 110.17, but
proposes placing the new requirement
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in new 11 CFR 104.22 rather than in 11
CFR 110.17 because the dollar amount
in this instance is merely a threshold for
disclosure rather than a contribution
limit covered under 11 CFR Part 110.
The Commission requests comments on
this approach.
The Commission also requests
comments on the timing of the
application of the indexing for inflation
requirement. New 2 U.S.C. 434(i)
provides that the indexing requirement
‘‘shall apply’’ to the reporting threshold
‘‘[i]n any calendar year after 2007.’’ 2
U.S.C. 434i(3)(B). The new law also
provides, however, that 2 U.S.C. 434(i)
will go into effect ‘‘with respect to
reports filed * * * after the expiration
of the 3-month period which begins on
the date that the regulations required to
be promulgated [under new 2 U.S.C.
434(i)] become final.’’ The Commission
expects that these proposed rules will
become final in early 2008, and that the
new disclosure requirements will apply
to reports filed three months later. Thus,
the first semi-annual reporting period
would be January 1 through June 30,
2008, and the first quarterly reporting
period would be April through June,
2008.
Given that 2008 is a ‘‘calendar year
after 2007,’’ should the reporting
threshold be indexed in 2008? If so,
then the effective reporting threshold
would never be $15,000; rather, it
would be $15,000 in 2006 (the base
period) dollars, as indexed for inflation
in 2008. The Commission requests
comments on this interpretation of the
new law, which is not included in the
proposed rule.
independently owned and operated
because they are not financed and
controlled by a small identifiable group
of individuals; rather, they rely on
contributions from a variety of persons
to fund the committee’s activities.
Political committees representing the
Democratic and Republican parties have
a major controlling influence within the
political arena and are thus dominant in
their field. However, to the extent that
any party committees representing
major or minor political parties or any
other political committees might be
considered ‘‘small organizations,’’ the
number that would be affected by this
rule is not substantial.
The proposed rules also would not
impose any additional restrictions.
Instead, the proposed rules would only
require disclosure of further information
already held by the political committees
affected. Therefore, the proposed rules
would not have a significant economic
impact on a substantial number of small
entities.
Certification of No Effect Pursuant to 5
U.S.C. 605(b) (Regulatory Flexibility
Act)
The attached proposed rules, if
promulgated, would not have a
significant economic impact on a
substantial number of small entities.
The basis for this certification is that
few, if any, small entities would be
affected by these proposals, which
apply only to Federal candidates and
their campaign committees, political
committees established, financed,
maintained or controlled by Federal
candidates or individuals holding
Federal office, and political committees
of political parties. Authorized
committees of Federal candidates would
not be considered small entities under
the definition at 5 U.S.C. 601(6).
Leadership PACs established, financed,
maintained or controlled by Federal
candidates or individuals holding
Federal office also would not qualify as
small entities. Such committees, while
established by an individual, are not
PART 100—SCOPE AND DEFINITIONS
(2 U.S.C. 431)
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List of Subjects
11 CFR Part 100
Elections.
11 CFR Part 104
Campaign funds, political committees
and parties, reporting and
recordkeeping requirements.
For the reasons set out in the
preamble, the Federal Election
Commission proposes to amend
Subchapter A of Chapter 1 of Title 11
of the Code of Federal Regulations as
follows:
1. The authority citation for part 100
is revised to read as follows:
Authority: 2 U.S.C. 431, 434, and 438(a)(8),
and 439a(c).
2. Section 100.5 is amended by
adding a new paragraph (e)(7) to read as
follows:
§ 100.5 Political committee (2 U.S.C.
431(4), (5), (6)).
*
*
*
*
*
(e) * * *
(7) Lobbyist/Registrant PAC means
any political committee established or
controlled by a ‘‘lobbyist/registrant,’’ as
that term is defined at 11 CFR
104.22(a)(3).
PART 104—REPORTS BY POLITICAL
COMMITTEES AND OTHER PERSONS
(2 U.S.C. 434)
3. The authority citation for part 104
continues to read as follows:
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Authority: 2 U.S.C. 431(1), 431(8), 431(9),
432(i), 434, 438(a)(8) and (b), 439a, 441a, and
36 U.S.C. 510.
4. Section 104.22 is added to read as
follows:
§ 104.22 Disclosure of bundling by
Lobbyist/Registrants (2 U.S.C. 434(i)).
(a) Definitions—Reporting committee
means:
(i) An authorized committee of a
Federal candidate as defined at 11 CFR
100.5(f)(1);
(ii) A leadership PAC as defined at 11
CFR 100.5(e)(6); or
(iii) A party committee as defined at
11 CFR 100.5(e)(4).
[Proposed Definition of Covered Period]
(2) Covered period means:
(i) In any calendar year the semiannual periods of January 1 through
June 30 and July 1 through December
31; and
(ii) In any calendar year in which a
reporting committee is required to file
or files monthly or quarterly reports
pursuant to 11 CFR 104.5, the quarterly
periods of January 1 through March 31
and July 1 through September 30 if,
during those periods a lobbyist/
registrant or lobbyist/registrant PAC
provided two or more bundled
contributions to the reporting committee
which aggregate in excess of $15,000.
[Alternative Definition of Covered
Period]
(2) Covered period means:
(i) In any calendar year in which a
reporting committee is required to file
or files on a quarterly basis pursuant to
11 CFR 104.5, the quarterly periods of
January 1 through March 31, April 1
through June 30, July 1 through
September 30 and October 1 through
December 31; and
(ii) In any calendar year in which a
reporting committee files semi-annual
reports pursuant to 11 CFR 104.5, the
semi-annual periods of January 1
through June 30 and July 1 through
December 31.
(3) Lobbyist/Registrant. For purposes
of this section, lobbyist/registrant means
a person who, at the time a contribution
is forwarded to, or is received by, a
reporting committee, is:
(i) A current registrant under Section
4(a) of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1603(a)); or
(ii) An individual who is named on a
current registration or current report
filed under Section 4(b)(6) or 5(b)(2)(C)
of the Lobbying Disclosure Act of 1995
(2 U.S.C. 1603(b)(6) or 1604(b)(2)(C)).
(4) Bundled contribution means any
contribution:
(i) Forwarded from the contributor or
contributors to the reporting committee
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by a lobbyist/registrant or lobbyist/
registrant PAC ; or
(ii) Received by the reporting
committee from the contributor or
contributors, and that is credited by the
committee, individual holding a Federal
office or candidate involved to a
lobbyist/registrant or lobbyist/registrant
PAC through records, designations, or
other means of recognizing that a certain
amount of money has been raised by the
lobbyist/registrant or lobbyist/registrant
PAC , except that
(iii) Bundled contributions do not
include contributions from the personal
funds of the lobbyist/registrant who
forwards or is credited with raising the
contributions or that person’s spouse.
(5) The committee or candidate
involved means: The reporting
committee; the candidate by whom the
authorized committee is authorized; or
the candidate or individual holding
Federal office who directly or indirectly
established, finances, maintains or
controls the leadership PAC.
(6) A designation or other means of
recognizing bundled contributions
includes titles based on levels of
fundraising, access to reporting
committee events reserved exclusively
for those who generate a certain level of
contributions, and events provided by a
reporting committee as a reward for
successful fundraising.
(b) Reporting requirement.
(1) Each reporting committee must file
a form listing each person reasonably
known by the committee to be a
lobbyist/registrant or lobbyist/registrant
PAC that provides two or more bundled
contributions (see 11 CFR 104.22(a)(4))
to the reporting committee aggregating
in excess of $15,000 during the covered
period. Each form shall set forth:
(i) The name of the lobbyist/registrant
or lobbyist/registrant PAC;
(ii) The address of the lobbyist/
registrant or lobbyist/registrant PAC;
(iii) The employer of the
lobbyist/registrant; and
(iv) The aggregate amount of bundled
contributions provided by the
lobbyist/registrant or lobbyist/registrant
PAC to the reporting committee during
the covered period.
(2) In order to comply with paragraph
(b)(1) of this section, a reporting
committee must consult the Web sites
maintained by the Clerk of the House of
Representatives, the Secretary of the
Senate, and the Federal Election
Commission to determine whether, at
the time a contribution was forwarded
to, or received by, the reporting
committee:
(i) The person was listed as a current
registrant under Section 4(a) of the
VerDate Aug<31>2005
16:29 Nov 05, 2007
Jkt 214001
Lobbying Disclosure Act of 1995 (2
U.S.C. 1603(a)), or
(ii) The person was an individual
listed on a current registration filed
under Section 4(b)(6) or a current report
filed under Section 5(b)(2)(C) of the
Lobbying Disclosure Act of 1995 (2
U.S.C. 1603 or 1604); or
(iii) The person identified itself as a
lobbyist/registrant PAC on its Statement
of Organization, FEC Form 1, filed with
the Commission; or
(iv) The person was listed as a
political committee established or
controlled by a lobbyist or registrant on
a report filed under Sec. 203 (a) of the
Honest Leadership and Open
Government Act of 2007, amending the
Lobbying Disclosure Act of 1995 (2
U.S.C. 1604).
(c) Where to file. Reporting
committees shall file either with the
Secretary of the Senate or with the
Federal Election Commission in
accordance with 11 CFR Part 105.
(d) When to file. Reporting
committees must file the forms required
under this section with the first report
required under 11 CFR 104.5 following
the end of each covered period.
(e) Recordkeeping. In addition to any
requirements to maintain records and
accounts under 11 CFR 102.8, 102.9 and
110.6, each reporting committee must
maintain for three years after the filing
of the report to which the information
relates a record of any bundled
contributions (see 11 CFR 104.22(a)(4))
provided by a lobbyist/registrant or
lobbyist/registrant PAC that aggregate in
excess of $15,000 for any covered
period. The information required to be
maintained is:
(1) The name and address of the
lobbyist/registrant or lobbyist/registrant
PAC;
(2) The employer of the lobbyist/
registrant; and
(3) The amount of bundled
contributions provided by the lobbyist/
registrant or lobbyist/registrant PAC for
each covered period.
(f) Price index increase.
(1) The threshold for reporting
bundled contributions established in
paragraph (d)(1) of this section shall be
increased by the percent difference
between the price index as defined at 11
CFR 110.17(d), as certified to the
Commission by the Secretary of Labor,
for the 12 months preceding the
beginning of the calendar year and the
price index base period.
(2) Each bundling threshold so
increased shall be the threshold in effect
for that calendar year.
(3) For purposes of this paragraph (e),
the term base period means calendar
year 2006.
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
62607
(4) Rounding of price index increases.
If any amount after the increases under
this paragraph (e) is not a multiple of
$100, such amount shall be rounded to
the nearest multiple of $100.
Dated: October 30, 2007.
Robert D. Lenhard,
Chairman, Federal Election Commission.
[FR Doc. E7–21711 Filed 11–5–07; 8:45 am]
BILLING CODE 6715–01–P
SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404, 405, and 416
[Docket No. SSA–2007–0053]
Compassionate Allowances for Rare
Diseases; Office of the Commissioner,
Hearing
AGENCY:
Social Security Administration
(SSA).
Advance Notice of Proposed
Rulemaking; Announcement of Public
Hearing and Limited Reopening of
Comment Period.
ACTION:
SUMMARY: We are considering ways to
quickly identify diseases and other
serious medical conditions that
obviously meet the definition of
disability under the Social Security Act
(the Act) and can be identified with
minimal objective medical information.
At present, we are calling this method
‘‘Compassionate Allowances.’’ We plan
to hold four public hearings over the
next year. The purpose of this first
hearing is to obtain your views about
the advisability and possible methods of
identifying and implementing
compassionate allowances for children
and adults with rare diseases. We will
address other kinds of medical
conditions in later hearings.
DATES: Dates and location: We must
receive written comments by December
21, 2007. Comments made at the
hearings will be considered in
preparation of a final rule. The first
hearing will be held on December 4 and
December 5, 2007, between 8:45 a.m.
and 5:30 p.m. Eastern Standard Time
(EST), in Washington, DC. The hearings
will be held at 500 E Street, SW.,
Washington, DC 20436, in the main
hearing room of the International Trade
Commission. Space limitations and time
constraints require hearing attendance
to be by invitation only. However, you
may listen to the proceedings by calling
1–888–456–0278, at 9 a.m., EST, the
mornings of December 4 and 5. If you
plan to listen in, please send an e-mail
to Compassionate.Allowances@ssa.gov
by November 21, 2007. Your e-mail will
help ensure that we have enough
E:\FR\FM\06NOP1.SGM
06NOP1
Agencies
[Federal Register Volume 72, Number 214 (Tuesday, November 6, 2007)]
[Proposed Rules]
[Pages 62600-62607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21711]
=======================================================================
-----------------------------------------------------------------------
FEDERAL ELECTION COMMISSION
11 CFR Parts 100 and 104
[Notice 2007-23]
Reporting Contributions Bundled by Lobbyists, Registrants and the
PACs of Lobbyists and Registrants
AGENCY: Federal Election Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Election Commission requests comments on proposed
rules implementing new statutory provisions regarding the disclosure of
information about bundled contributions provided by certain lobbyists
and registrants. The proposed rules would require authorized
committees, leadership PACs and political committees of political
parties to disclose certain information about lobbyists and registrants
and lobbyists' and registrants' political committees that provide
bundled contributions. No final decisions have been made by the
Commission on any of the proposed regulations in this Notice. Further
information is provided in the supplementary information that follows.
DATES: Comments must be received on or before November 30, 2007. The
Commission will announce the date of a hearing at a later date. Anyone
seeking to testify at the hearing must file written comments by the due
date and must include in the written comments a request to testify.
ADDRESSES: All comments must be in writing, must be addressed to Ms.
Amy L. Rothstein, Assistant General Counsel, and must be submitted in
e-mail, facsimile, or paper copy form. Commenters are strongly
encouraged to submit comments by e-mail or fax to ensure timely receipt
and consideration. E-mail comments must be sent to bundling07@fec.gov.
If e-mail comments include an attachment, the attachment must be in
Adobe Acrobat (.pdf) or Microsoft Word (.doc) format. Faxed comments
must be sent to (202) 219-3923, with paper copy follow-up. Paper
comments and paper copy follow-up of faxed comments must 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. Amy L. Rothstein, Assistant
General Counsel, or Ms. Cheryl A.F. Hemsley, Attorney, 999 E Street,
NW., Washington, DC 20463, (202) 694-1650 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: The Commission is proposing changes to its
rules to implement section 204 of Public Law 110-81, 121 Stat. 735, the
``Honest Leadership and Open Government Act of 2007,'' signed September
14, 2007. The new law amended the Federal Election Campaign Act of
1971, as amended (2 U.S.C. 431 et seq.) (``the Act'') by requiring
certain political committees to disclose information about each
lobbyist and registrant, and each political committee established or
controlled by a lobbyist or registrant (``lobbyist/registrant PAC''
\1\), that forwards, or is credited with raising, two or more bundled
contributions aggregating in excess of $15,000 during a specific period
of time.\2\ See 2 U.S.C. 434(i) (henceforth referred to as the ``new
law'' or ``new 2 U.S.C. 434(i)''). The Commission uses the term
``lobbyist/registrant'' to refer to registrants and lobbyists under the
Lobbying Disclosure Act of 1995 (``LDA'').
---------------------------------------------------------------------------
\1\ ``PAC'' is an acronym often used to refer to a political
action committee other than an authorized committee or a political
committee of a political party.
\2\ As discussed infra, the new law requires the reporting of
information about certain bundled contributions that have been
``provided'' to certain political committees, and defines a
``bundled contribution'' as a contribution that is either
``forwarded'' to the political committee by a lobbyist/registrant or
lobbyist/registrant PAC, or that is received by the political
committee from the contributor but ``credited'' to the lobbyist/
registrant or lobbyist/registrant PAC that ``raised'' it. 2 U.S.C.
434(i)(1), (8)(A). To clarify that the reporting requirement does
not apply only to contributions that have been provided directly to
a political committee by a lobbyist/registrant or lobbyist/
registrant PAC, this NPRM describes the reporting requirement as
applying to lobbyist/registrants or lobbyist/registrant PACs that
have either forwarded, or that have been credited with raising,
bundled contributions.
---------------------------------------------------------------------------
The Commission proposes to implement these provisions by adding a
new subparagraph to 11 CFR 100.5(e) and adding a new section to the
reporting rules at 11 CFR Part 104. The proposed reporting requirements
would apply only to authorized committees of Federal candidates,
political committees of political parties, and political committees
directly or indirectly established, financed, maintained or controlled
by a candidate or an individual holding Federal office (``leadership
PACs'' \3\).
---------------------------------------------------------------------------
\3\ The new law provides a definition of leadership PAC that the
Commission proposed to implement as 11 CFR 100.5(e)(6) in a separate
rulemaking regarding candidate travel. See 72 FR 59953 (October 23,
2007). The Commission assumes that a definition will be promulgated
in the travel rulemaking before these disclosure rules are
promulgated and thus, cites to 11 CFR 100.5(e)(6).
---------------------------------------------------------------------------
I. Background
A. The Current Statutory and Regulatory Framework
Currently, the Act and Commission regulations impose certain
reporting and recordkeeping requirements for contributions received and
forwarded by any person to a political committee. Each person who
receives and forwards contributions to a political committee must also
forward certain information identifying the original contributor. See 2
U.S.C. 432(b); 11 CFR 102.8.
Additionally, 2 U.S.C. 441a(a)(8) and 11 CFR 110.6 impose certain
reporting and recordkeeping requirements for contributions received and
forwarded by persons known as ``conduits'' or ``intermediaries'' to the
authorized committees of Federal candidates. The Commission is not
proposing any changes to these rules.
B. Revisions to 2 U.S.C. 434(i)--Reporting Requirements
New 2 U.S.C. 434(i) requires authorized committees of Federal
candidates, leadership PACs and political committees of political
parties to disclose certain information about any person reasonably
known by the committee to be a lobbyist/registrant or lobbyist/
registrant PAC that forwards, or is credited with raising, two or more
bundled contributions aggregating in excess of $15,000 to the committee
within a ``covered period'' of time. 2 U.S.C. 434(i)(1), (2), (3) and
(8). Reporting committees must disclose the name and address of the
lobbyist/registrant or lobbyist/registrant PAC, the lobbyist/
registrant's employer (for individual persons), and the aggregate
amount of contributions bundled to the committee within the covered
period. 2 U.S.C. 434(i)(1).
[[Page 62601]]
II. Proposed Revisions to 11 CFR 100.5. Political Committee (2 U.S.C.
432(4), (5), (6); 2 U.S.C. 434(i)(7)(C) and (8)(B))
Currently, 11 CFR 100.5(e) provides examples of types of political
committees. Proposed 11 CFR 100.5(e)(7) would add the term ``lobbyist/
registrant PAC'' as an example, and would define the term as ``any
political committee established or controlled'' by a lobbyist/
registrant, as defined in proposed 11 CFR 104.22(a)(3). This definition
is consistent with the new law. See 2 U.S.C. 434(i)(7)(C). Political
committees that meet this definition would have to identify themselves
as such on their Statements of Organization. See 11 CFR 102.2(a)(1)
(requiring each political committee to disclose its name, address and
type on its Statement of Organization). Further, the Commission
anticipates that any political committee that is already registered
with the Commission and that fits this proposed definition would be
required to amend its Statement of Organization to reflect its status
as a lobbyist/registrant PAC.\4\
The Commission requests comments on this approach. When would a
nonconnected committee be considered to be ``controlled'' by a
lobbyist/registrant? Is a committee whose treasurer is a lobbyist/
registrant per se ``controlled'' by the lobbyist/registrant? What if
that treasurer serves only in a ministerial or custodial function?
As discussed further in Part III, the law requires disclosure of
bundling by either an individual who registers as a lobbyist under the
LDA or a ``registrant'' under that Act, which includes any organization
that employs in-house lobbyists. Thus, the Commission proposes to
define ``lobbyist/registrant'' to include both lobbyists and
registrants under the LDA. Moreover, since the SSF of a corporation,
labor organization or other connected organization (see 11 CFR 100.6)
that employs in-house lobbyists would be, by definition, controlled by
a registrant, the Commission proposes to include such SSFs within the
ambit of ``lobbyist/registrant PACs.'' The Commission requests comment
on this approach.
The Commission currently requires committees to identify themselves
as only one type of committee. See FEC Form 1 Statement of
Organization, Question 5 (``Type of Committee (Check One)''). How
should an organization that is both an SSF and a ``lobbyist/registrant
PAC'' identify itself on FEC reports? Should one type of registration
control? Alternatively, should the Commission allow committees to
identify themselves as more than one type of committee? Of note,
allowing multiple registrations could affect the Commission's current
disclosure processes.
The Commission also requests comments on the placement of the
definition of ``lobbyist/registrant PAC'' in 11 CFR 100.5(e),
``examples of political committees,'' as opposed to placing this
definition in proposed 11 CFR 104.22.
III. Proposed New 104.22. Disclosure of Bundling by Lobbyist/
Registrants (2 U.S.C. 434(i))
To implement the new disclosure requirements, the Commission is
proposing to add new 11 CFR 104.22 to its reporting regulations.
A. Definitions
1. Reporting Committee
New 2 U.S.C. 434(i) adds reporting requirements for three types of
political committees: authorized committees of a candidate, leadership
PACs, and political party committees. 2 U.S.C. 434(i)(6). Proposed 11
CFR 104.22(a)(1) would define the term ``reporting committee'' to
encompass these three types of political committees, which are defined
in 11 CFR 100.5. The Commission requests comments on this new term,
``reporting committee.''
2. Covered Period
New 2 U.S.C. 434(i) requires that reporting committees disclose
information about any lobbyist/registrant or lobbyist/registrant PAC
that forwards, or is credited with raising for the committee, two or
more bundled contributions aggregating in excess of $15,000 during any
``covered period.'' 2 U.S.C. 434(i)(1), (2), (3) and (8). It defines
``covered period'' as January 1 through June 30, July 1 through
December 31 ``and * * * any reporting period applicable to the
committee under [2 U.S.C. 434] during which any [lobbyist/registrant or
lobbyist/registrant PAC] provided two or more bundled contributions to
the committee in an aggregate amount greater than [$15,000].'' 2 U.S.C.
434(i)(2).
The new law also provides the Commission with the authority to
require reporting committees filing their campaign finance reports more
frequently than on a quarterly basis \5\ to disclose information about
lobbyist/registrants who provide bundled contributions in excess of
$15,000 on a quarterly basis, rather than monthly. See 2 U.S.C.
434(i)(5)(A).
The Commission presents both a proposed and an alternative
definition of ``covered period.'' Each definition would exercise the
Commission's statutory authority to place monthly filers on the same
schedule as committees that file quarterly campaign finance reports. 2
U.S.C. 434(i)(5)(D). For ease of public consumption of disclosed
bundled contributions, consistent disclosure periods would provide the
public with semi-annual aggregate snapshots for all categories of
filers. Does the language in 2 U.S.C. 434(i)(5)(A) permit the
Commission also to require aggregate semi-annual disclosure from these
monthly filers? Should the Commission, instead, not exercise its
statutory authority, and require monthly filers to disclose information
about bundled contributions on a monthly and semi-annual basis? See 2
U.S.C. 434(i)(2).
a. Proposed Definition of ``Covered Period''
Under proposed 11 CFR 104.22(a)(2)(i), the term ``covered period''
would be the semi-annual periods of January 1 through June 30 and July
1 through December 31. Additionally, proposed 11 CFR 104.22(a)(2)(ii)
provides that in any calendar year in which a reporting committee is
required to file or files monthly or quarterly campaign finance
reports, the covered period would also include the quarterly periods of
January 1 through March 31 and July 1 through September 30 if, during
those periods, a lobbyist/registrant or a lobbyist/registrant PAC
provided two or more bundled contributions to the reporting committee
which aggregate in excess of $15,000.
Thus, under the proposed rule, any committee that receives more
than $15,000 in bundled contributions from a lobbyist/registrant or
lobbyist/registrant PAC during the first or third calendar quarter
would have to disclose information about the bundler twice:
[[Page 62602]]
once for the report covering the quarter during which the committee
received the bundled contributions from a lobbyist/registrant or
lobbyist/registrant PAC, and again at the end of the six-month period.
---------------------------------------------------------------------------
\4\ The Commission notes that this same identification
requirement would apply to political committees that meet the
definition of leadership PAC. See 11 CFR 100.5(e)(6). In conjunction
with this rulemaking, the Commission anticipates amending FEC Form
1, the Statement of Organization, to include both ``lobbyist/
registrant PAC'' and ``leadership PAC'' as types of political
committees.
\5\ National committees of political parties (including the
national congressional campaign committees) must report monthly in
all calendar years. See 2 U.S.C. 434(a)(4)(B); 11 CFR 104.5(c)(4).
State, district and local committees of political parties are
required to file monthly if they exceed certain levels of Federal
election activity. See 2 U.S.C. 434(e)(4); 11 CFR 300.36(c).
Further, some authorized committees of presidential candidates are
required to file monthly during presidential election years. See 2
U.S.C. 434(a)(3); 11 CFR 104.5(b).
---------------------------------------------------------------------------
For example, if lobbyist/registrant PAC Z is credited with having
raised $20,000 for a reporting committee in the first quarter, then the
reporting committee would disclose lobbyist/registrant PAC Z in its
report covering the first quarter as having provided $20,000 in bundled
contributions to the committee. If, in the second quarter, the
reporting committee credits lobbyist/registrant PAC Z with having
raised another $5,000, the reporting committee would disclose on its
semi-annual report the entire $25,000 in bundled contributions provided
by lobbyist/registrant PAC Z in the first two calendar quarters. The
Commission requests comments on whether this is the correct reading of
the statutory requirements, and whether this duplicative reporting
could lead to the mistaken impression that lobbyist/registrant PAC Z
provided $45,000 rather than $25,000 to the committee during the first
two calendar quarters.
The Commission further requests comments on whether there is a
statutory basis on which the Commission might consider some means of
eliminating this duplicative reporting. For example, is there a
statutory basis for the Commission to consider exempting reporting
committees from having to disclose semi-annually information about
lobbyist/registrants or lobbyist/registrant PACs providing bundled
contributions if the information was already fully disclosed in a prior
report filed with the Commission? Would this approach be confusing or
result in the appearance of over-or under-reporting the contributions
bundled by lobbyist/registrants or lobbyist/registrant PACs?
Is the Commission's interpretation consistent with the requirement
in the new law that the Commission ``provide for the broadest possible
disclosure of activities described in this subsection?''
b. Alternative Definition of Covered Period
In the alternative, the Commission requests comments on the
following definition of ``covered period.'' Alternative 11 CFR
104.22(a)(2)(i) would provide that in any calendar year in which a
reporting committee is required to file or files reports on a quarterly
or monthly basis under 11 CFR 104.5, the covered period would be
defined as quarterly periods of January 1 through March 31, April 1
through June 30, July 1 through September 30, and October 1 through
December 31. Under alternative 11 CFR 104.22(a)(2)(ii), in any calendar
year in which a reporting committee files semi-annual reports, the
covered period would also include the semi-annual periods of January 1
through June 30 and July 1 through December 31.
For example, if lobbyist/registrant PAC Z is credited with having
raised $20,000 in the first quarter for a reporting committee that
files on a monthly or quarterly basis, then the reporting committee
would disclose lobbyist/registrant PAC Z in its report covering the
first quarter as having provided $20,000 in bundled contributions to
the committee. If, in the second quarter, the reporting committee
credits lobbyist/registrant PAC Z with having raised another $5,000,
the reporting committee would not disclose on its second quarter
reports any bundled contributions provided by lobbyist/registrant PAC Z
because the second quarter bundled contributions fell below the $15,000
threshold for the second quarter reporting period. No aggregate semi-
annual reporting would be required. The Commission requests comments on
whether this is a permissible reading of the statutory requirements,
and whether this alternative could lead to the under reporting of
contributions that take place across quarterly reporting periods, but
within the semi-annual period. For example, under this alternative, a
lobbyist/registrant or lobbyist/registrant PAC could provide $15,000 in
bundled contributions to a reporting committee during each calendar
quarter and the reporting committee would not have triggered the
disclosure requirement under the new law.
Additionally, in lieu of either the proposed rule or the
alternative, the Commission seeks comment on whether reporting
committees should report both semi-annual and quarterly information at
the end of each semi-annual period. If, in the example above, in the
second quarter lobbyist/registrant PAC Z provides the reporting
committee with $25,000 (having also provided $20,000 in bundled
contributions in the first quarter), should the reporting committee
disclose that it received $45,000 for the semi-annual period, and also
disclose that it received $25,000 for the second quarter period?
3. Lobbyist/Registrant and Lobbyist/Registrant PAC
The new law applies only to contributions bundled by ``a current
registrant under section 4(a) of the [LDA] [2 U.S.C. 1603(a)]; \6\ an
individual who is listed on a current registration filed under section
4(b)(6) of such Act [2 U.S.C. 1603(b)(6)] or a current report under
section 5(b)(2)(C) of such Act [2 U.S.C. 1604(b)(2)(C)]; or a political
committee established or controlled by such a registrant or
individual.'' 2 U.S.C. 434(i)(7).
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\6\ The Web sites of the Secretary of the Senate and the Clerk
of the House of Representatives provide the following guidance
regarding who is a ``registrant'': A lobbying firm or an
organization employing in-house lobbyists that files a registration
pursuant to Section 4 of the Lobbying Disclosure Act of 1995. See
https://www.senate.gov/legislative/common/briefing/lobby_disc_
briefing.htm#3; https://lobbyingdisclossure.house.gov/lda_
guide.html.
---------------------------------------------------------------------------
Proposed 11 CFR 104.22(a)(3) would create a new term, ``lobbyist/
registrant,'' to encompass both current registrants and individuals
listed on a current registration or report filed under the LDA. As
discussed above, the Commission is proposing to add a definition of
``lobbyist/registrant PAC'' at 11 CFR 100.5(e)(7).
4. Bundled Contributions
Proposed 11 CFR 104.22(a)(4)(i) and (ii) would implement new 2
U.S.C. 434(i)(8)(A) by defining the term ``bundled contribution'' as
any contribution that a lobbyist/registrant or lobbyist/registrant PAC
forwards to the reporting committee from the contributor, or that the
reporting committee receives from the contributor but credits to the
lobbyist/registrant or lobbyist/registrant PAC through records,
designations, or other means of recognizing that a certain amount of
money has been raised by the lobbyist/registrant or lobbyist/registrant
PAC.
Under proposed 11 CFR 104.22(a)(4)(i), forwarded contributions
would satisfy the proposed definition of ``bundled contributions''
regardless of whether the bundler receives credit from the reporting
committee. Would it be helpful to the regulated community for the
Commission to define the term ``forwarded'' in the rule as, for
instance, ``arranging or causing the physical or electronic delivery or
transmission of a contribution''?
Under proposed 11 CFR 104.22(a)(4)(ii), a contribution must be both
received by the reporting committee and credited to a lobbyist/
registrant or lobbyist/registrant PAC to satisfy proposed 11 CFR
104.22(a)(4)(ii). The mere crediting of a contribution to a lobbyist/
registrant or lobbyist/registrant PAC would not satisfy proposed 11 CFR
104.22(a)(4)(ii) if the contribution is not received. In the
alternative, should the amount credited control? With respect to these
[[Page 62603]]
contributions, should the rule apply to in-kind contributions as well?
Proposed 11 CFR 104.22(a)(4)(iii) states that bundled contributions
do not include contributions from the personal funds of the bundling
person or that person's spouse. This provision would be consistent with
the new law, which excludes contributions made to the reporting
committee by the lobbyist/registrant or lobbyist/registrant's spouse
from counting towards the $15,000 reporting threshold. See 2 U.S.C.
434(i)(3)(A).
Proposed 11 CFR 104.22(a)(5) provides that the term ``candidate
involved'' means, for authorized committees, the candidate for whom the
committee is authorized; and for leadership PACs, the candidate or
individual holding Federal office who directly or indirectly
establishes, maintains, finances or controls the leadership PAC. This
is consistent with the language of the new law in describing who would
credit, designate or otherwise recognize a lobbyist/registrant or
lobbyist/registrant PAC with having raised contributions in excess of
$15,000 during the covered period. See 2 U.S.C. 434(i)(8)(A)(ii). The
Commission requests comments on whether the proposed provision would be
helpful in providing guidance to the regulated community.
As noted above, the proposed definition of ``lobbyist/registrant''
includes current registrants under section 4(a) of the LDA (2 U.S.C.
1603(a)). Such registrants are primarily organizations that employ one
or more lobbyists.
Does the new law cover bundled contributions provided by employees
and agents of organizations that are registrants, when those
individuals are not themselves lobbyist/registrants? Can an
organization that is prohibited from making contributions, such as a
corporation or a labor organization, but nonetheless is a registrant,
be credited with having raised contributions?
There is seemingly some incongruity in statements made by some of
the new law's supporters and the section-by-section analysis of the
legislation provided by the three principal Senate authors of the bill
(the ``section-by-section analysis''). See 153 CONG. REC. S10709 (daily
ed. August 2, 2007). For example, in a colloquy on the Senate floor,
Senator Feingold and Senator Obama indicated that the disclosure
requirement would be triggered by contributions bundled by an employee
of a lobbyist, if that employee is acting as an agent of the lobbyist,
even if the employee is not listed on a current registration or report
filed under the LDA. 153 CONG. REC. S10699 (daily ed. Aug. 2, 2007)
(statements of Sen. Feingold and Sen. Obama). On the other hand, the
section-by-section analysis states that the statute ``covers only
contributions credited to registered lobbyists.'' 153 CONG. REC. S10709
(daily ed. Aug. 2, 2007). The Commission requests comments on whether
the new requirements should cover employees who are agents of lobbyist/
registrants or lobbyist/registrant PACs, even if such individuals are
not listed as registered lobbyists under the LDA. How should the
Commission give content to the statutory requirement that bundling by
registrant organizations be disclosed?
In addition, how should the new law be applied with regard to
crediting multiple lobbyist/registrants or lobbyist/registrant PACs
involved in a single fundraiser? In a statement on the Senate floor,
Senator Feingold stated that ``when two or more lobbyists are jointly
involved in providing the same bundled contributions--as for instance,
in the case of a fundraising event co-hosted by two or more lobbyists--
then each lobbyist is responsible for and should be treated as
providing the total amount raised at the event for purposes of applying
the applicable threshold to the funds raised by that lobbyist'' and for
reporting purposes. 153 CONG. REC. S10699 (daily ed. August, 2, 2007)
(statement of Sen. Feingold). Thus, the Commission requests comments on
how multiple hosts of a fundraiser should be credited by the reporting
committee. For example, if three lobbyist/registrants jointly co-host a
fundraiser that raises $20,000 in contributions for Senator X, should
each of the three co-hosts be deemed to have raised the entire $20,000
for reporting purposes? Would this approach be misleading or inaccurate
from a disclosure perspective? Should the sum total instead be prorated
among the three co-hosts?
Proposed 11 CFR 104.22(a)(6) would explain the meaning of
``designations or other means of recognizing.'' The proposed rule
provides that ``designations or other means of recognizing'' a
lobbyist/registrant or lobbyist/registrant PAC's fundraising would
include ``titles based on levels of fundraising, access to events
reserved exclusively for those who generate a certain level of
contributions, or similar benefits provided as a reward for successful
fundraising.'' The Commission requests comments on this approach and
also requests other examples of records, designations or other means of
recognizing a lobbyist/registrant or lobbyist/registrant PAC's
fundraising. Should service by an individual on a host committee of a
fundraising event serve as ``designation or other means of recognizing
that a certain amount of money has been raised by the person''? Should
honorary titles within the reporting committee be deemed a
``designation or other means of recognizing that a certain amount of
money has been raised by the person''? See 153 CONG. REC. 510699 (daily
ed. Aug. 2, 2007) (statement of Sen. Obama); id. at 510709. Would such
an approach encompass individuals who have no actual role in
fundraising? Further, would any ``other means of recognizing'' have to
be designated in writing?
The legislative history provides other guidance that the Commission
has not proposed as a part of new 11 CFR 104.22(a)(4). In a statement
on the Senate floor, Senator Feingold noted that a reporting committee
must know that a lobbyist/registrant or lobbyist/registrant PAC has
raised a certain amount, not just be generally aware that the lobbyist/
registrant or lobbyist/registrant PAC has been fundraising. Should the
Commission include a similar interpretation in the concept of credited?
B. Reporting Requirement
1. Required Disclosure
Proposed 11 CFR 104.22(b), consistent with the new law, requires
reporting committees to disclose on a new form certain information
about any person reasonably known to be a lobbyist/registrant or
lobbyist/registrant PAC that forwards, or is credited with raising, two
or more bundled contributions in excess of $15,000 to the reporting
committee during the covered period. 2 U.S.C. 434(i)(1). Specifically,
the reporting committee must disclose the name of the lobbyist/
registrant or lobbyist/registrant PAC, the address of the lobbyist/
registrant or lobbyist/registrant PAC, the employer of the lobbyist/
registrant who provided the bundled contributions (for individual
lobbyist/registrants), and the amount of bundled contributions provided
during the covered period. Id.
In conjunction with this rulemaking, the Commission intends to
create a new form for disclosing information about lobbyists and
lobbyist PACs that provide bundled contributions. The form would be
filed with the Form 3 (House and Senate authorized committees), Form 3P
(Presidential authorized committees) and Form 3X (leadership PACs and
political party committees) following the appropriate covered period.
[[Page 62604]]
2. Reasonably Known To Be
The new law requires the disclosure of information about a person
who forwards, or who is credited with having raised, two or more
bundled contributions aggregating in excess of $15,000 during the
covered period if the person is ``reasonably known by the [reporting]
committee to be'' a lobbyist /registrant or a lobbyist/registrant PAC.
2 U.S.C. 434(i)(1). The new law requires the Commission to ``provide
guidance to [reporting] committees with respect to whether a person is
reasonably known by a committee to be'' a lobbyist/registrant or
lobbyist/registrant PAC. 2 U.S.C. 434(i)(5)(B). In so doing, the
Commission is to include a ``requirement that [reporting] committees
consult the Web sites maintained by the Secretary of the Senate and the
Clerk of the House of Representatives containing information filed
pursuant to the Lobbying Disclosure Act of 1995.'' 2 U.S.C.
434(i)(5)(B).
Proposed 11 CFR 104.22(b)(2) would provide guidance with respect to
how a reporting committee is to comply with these requirements. This
paragraph directs the committee to consult the Web sites maintained by
the Clerk of the House of Representatives, the Secretary of the Senate,
and the Federal Election Commission in order to determine whether a
person is identified on a filing under the LDA or the Act as a
registrant, a lobbyist, or a political committee established or
controlled by a registrant or lobbyist.
The Commission seeks comment on these proposed regulations. Does
the regulatory text adequately implement the statutory requirements?
May the Commission require committees to consult the Commission's Web
site for information regarding registration of lobbyist/registrant
PACs, since that information is not currently available on the Web
sites of the Secretary of the Senate or the Clerk of the House of
Representatives?
The Commission requests comments on what other guidance the
Commission might issue as to how a reporting committee can reasonably
know that a bundler of contributions is a lobbyist/registrant or
lobbyist/registrant PAC. What other steps could the Commission take to
make information regarding lobbyist/registrant PACs more easily
accessible?
C. Where To File
Under current 11 CFR Part 105, authorized committees of candidates
for the House of Representatives, the principal campaign committees of
Presidential candidates, and any other political committees that
support such candidates must file their regular campaign finance
reports with the Commission. See 11 CFR 105.1, 105.3 and 105.4.
Authorized committees of candidates for the Senate and any other
political committees that support only Senate candidates must file
their reports with the Secretary of the Senate. See 11 CFR 105.2.
Proposed 11 CFR 104.22(c) would require the form required by the new
law to be filed in accordance with 11 CFR Part 105. The Commission
requests comments on this proposal.
D. When To File
New 2 U.S.C. 434(i)(1) requires reporting committees to file a form
listing information about each lobbyist/registrant or lobbyist/
registrant PAC with ``the first report required to be filed under this
section after each covered period'' in which a lobbyist/registrant or
lobbyist/registrant PAC provided bundled contributions exceeding
$15,000. 2 U.S.C. 434(i)(a)(1). As noted above, the proposed rule
defines ``covered period'' as the semi-annual periods of January 1
through June 30 and July 1 through December 31. Additionally, proposed
11 CFR 104.22(a)(2)(ii) provides that in any calendar year in which a
reporting committee is required to file or files monthly or quarterly
campaign finance reports under 11 CFR 104.5, the covered period would
also include the quarterly periods of January 1 through March 31 and
July 1 through September 30 if, during those periods, a lobbyist/
registrant or a lobbyist/registrant PAC provided two or more bundled
contributions to the reporting committee which aggregate in excess of
$15,000. Thus, proposed 11 CFR 104.22(d) would require a reporting
committee to file a form semi-annually in every calendar year, and in
the calendar quarters of January 1 through March 31 and July 1 through
September 30 if any lobbyist/registrant or lobbyist/registrant PAC
forwarded, or was credited with having raised, two or more bundled
contributions aggregating in excess of $15,000 during those calendar
quarters.
The Commission requests comments on proposed 11 CFR 104.22(d).
As discussed above, the alternative definition of ``covered
period'' would require reporting committees to disclose information
about lobbyist/registrants or lobbyist/registrant PACs that provide
bundled contributions on a slightly different schedule than that under
the proposed rule. Under alternative 11 CFR 104.22(a)(2)(i), monthly
and quarterly filers would be required to file, concurrently with their
campaign finance reports filed in April, July, October and January, a
form listing any lobbyist/registrant or lobbyist/registrant PAC that
provided bundled contributions aggregating in excess of $15,000 during
the previous calendar quarter. Further, in any calendar year in which a
reporting committee files its campaign finance reports on a semi-annual
basis, the committee would concurrently file its form disclosing
information about any lobbyist/registrant or lobbyist/registrant PAC
that provided bundled contributions in excess of $15,000 during the
semi-annual covered period. The Commission requests comments on the
effect of the alternative ``covered period'' on report timing.
Reporting Hypotheticals
The following examples illustrate how proposed 11 CFR 104.22 would
interact with the Commission's existing reporting requirements for
forwarded contributions.
The first hypothetical involves the authorized committee of a
candidate as the reporting committee and thus, also invokes 11 CFR
110.6 regarding earmarking contributions to authorized committees, if
the person earmarking the contributions qualifies as a ``conduit''
under that section.
The second hypothetical involves either a leadership PAC or a
political party committee as the reporting committee. This hypothetical
would not invoke 11 CFR 110.6 because that section applies only to
contributions earmarked for an authorized committee.
Hypothetical Example 1
Facts.
Candidate A's authorized committee files campaign finance
reports on a quarterly basis.
On February 20, Lobbyist/Registrant Z delivers a $30,000 check
to Candidate A's treasurer, representing fifteen $2,000
contributions that Lobbyist/Registrant Z collected on February 15 on
behalf of Candidate A. Lobbyist/Registrant Z also provides a list of
each contributor's name, mailing address, employer and occupation,
and the date received by Lobbyist/Registrant Z as required under 11
CFR 110.6(c)(1)(iii) and (iv).
On March 21, Lobbyist/Registrant Z, although he does not occupy
a significant position in Candidate A's campaign,\7\ hosts a
fundraiser on Candidate A's behalf, at which Candidate A makes a
speech. At the fundraiser, five contributors hand checks totaling
$10,000 directly to Candidate A.
---------------------------------------------------------------------------
\7\ An individual who occupies a significant position within a
campaign may be exempt from the earmarking regulations. See 11 CFR
110.6(b)(2)(i)(E).
---------------------------------------------------------------------------
On June 5, Lobbyist/Registrant Z delivers to the authorized
committee five checks
[[Page 62605]]
totaling $6,000 that he collected on Candidate A's behalf during the
preceding week.
Reporting Requirements.
1. On the committee's first quarterly campaign finance report,
it must:
a. Pursuant to 11 CFR 110.6, report:
i. The name, mailing address, occupation and employer of
Lobbyist/Registrant Z.
ii. As a memo entry, the total amount of contributions forwarded
by Lobbyist/Registrant Z ($30,000), the date received by the
committee (February 20) and a notation of whether the Lobbyist/
Registrant's contribution limit was affected or not pursuant to 11
CFR 110.6(d).
iii. The name, mailing address, employer, occupation of each
contributor, as well as the date that Lobbyist/Registrant Z received
the contributions (February 15) and a notation that it was earmarked
through him.
This reporting requirement is triggered by Lobbyist/Registrant
Z's having acted as a conduit under 11 CFR 110.6 for the
contributions that he received on February 15 and delivered on
February 20, because he physically forwarded the contributions to
the authorized committee.
b. Pursuant to 11 CFR 104.3, report for each of the five
contributors who made contributions at the March 21 fundraiser: The
person's name, mailing address, occupation, and employer, date
received (March 21) and amounts, itemizing the contributions as
necessary under 11 CFR 104.3.
c. Pursuant to proposed 11 CFR 104.22, report the name, address
and employer of Lobbyist/Registrant Z, as well as the total amount
bundled by Lobbyist/Registrant Z, $40,000, during the covered
period. This reporting requirement is triggered because Lobbyist/
Registrant Z forwarded, or was credited with raising, more than
$15,000 in contributions during the committee's reporting period
(the calendar quarter).
2. On the authorized committee's second quarterly campaign
finance report, it must:
a. Pursuant to 11 CFR 110.6, report:
i. The name, mailing address, occupation and employer of
Lobbyist/Registrant Z.
ii. As a memo entry, the total amount of contributions forwarded
to the committee by Lobbyist/Registrant Z ($6,000) and the date
received by the authorized committee (June 5).
iii. The name, mailing address, employer and occupation of each
contributor, the date each contribution was received by Lobbyist/
Registrant Z and whether the contributions affected Lobbyist/
Registrant Z's contribution limits pursuant to 11 CFR 110.6(d).
Lobbyist/Registrant Z is a conduit under 11 CFR 110.6, because
he collected and forwarded the contributions to the authorized
committee. Thus, the authorized committee disclosed his
contributions in a manner similar to hypothetical 1.a., above.
b. Pursuant to proposed 11 CFR 104.22, file a form disclosing
the lobbyist/registrant's name, address and employer, as well as the
aggregate amount of bundled contributions that the committee
received from or credited to Lobbyist/Registrant Z during the six-
month covered period ($46,000). While the aggregate amount of
contributions forwarded or raised by and credited to Lobbyist/
Registrant Z did not exceed $15,000 during the committee's second
quarterly reporting period, the aggregate amount of bundled
contributions provided by Lobbyist/Registrant Z during the January 1
through June 30 semi-annual covered period, $46,000, does exceed the
$15,000 reporting threshold for that covered period.
Hypothetical Example 2
Facts.
A leadership PAC files campaign finance reports on a monthly
basis.\8\
---------------------------------------------------------------------------
\8\ The same hypothetical applies to a political party
committee.
---------------------------------------------------------------------------
On February 20, lobbyist/registrant PAC X delivers a check to
the leadership PAC for $30,000, representing contributions to the
leadership PAC from fifteen individual contributors, along with
information about each contributor as required under 11 CFR
110.6(c)(1)(iii) and (iv).
On March 12, lobbyist/registrant PAC X hosts a fundraiser at
which the ``candidate involved'' with the leadership PAC makes a
speech. Between March 13 and March 31, the leadership PAC receives 6
checks aggregating to $12,000. Each check notes that the contributor
is helping the leadership PAC because of the speech given at the
March 12 fundraiser. The leadership PAC thanks the contributors and
also sends a note to lobbyist/registrant PAC X recognizing it for
having raised the $12,000.
Reporting Requirements
1. On the leadership PAC's campaign finance report covering
February, it must:
a. Pursuant to 11 CFR 104.3 and 104.8, report for each of the
fifteen contributors who made the contributions delivered by
lobbyist/registrant PAC X on March 20: The person's name, mailing
address, occupation, employer, and date of receipt by lobbyist/
registrant PAC X, itemizing the contributions as necessary under
104.8.
2. On the leadership PAC's campaign finance report covering
March, it must:
a. Pursuant to 11 CFR 104.3 and 104.8, report for each of the
six contributions that make up the $12,000 that the leadership PAC
received directly from contributors and credited to lobbyist/
registrant PAC X: The person's name, mailing address, occupation,
employer, and the date of receipt by lobbyist/registrant PAC X
itemizing the contributions as necessary under 11 CFR 104.8.
b. Pursuant to proposed 11 CFR 104.22, include a separate form
disclosing lobbyist/registrant PAC X's name and address, and, the
total amount of bundled contributions that lobbyist/registrant PAC X
provided to the leadership PAC during the first calendar quarter.
This form would be required because the aggregate amount of bundled
contributions provided by lobbyist/registrant PAC X exceeds $15,000
during the unauthorized committee's covered period of January 1
through March 31.
The Commission requests comments on these hypotheticals.
E. Recordkeeping
Current Commission regulations implement certain statutory
recordkeeping requirements that also apply to certain bundled
contributions. For example, committees must keep a record and account
of each contribution exceeding $50 for three years after filing the
report to which the record or account relates. See 2 U.S.C. 432(c)(2)
and (d); 11 CFR 102.9(a) and (c). In addition, any person who receives
and forwards contributions to any political committee must also forward
certain information about the original contributor. See 2 U.S.C. 432(c)
and 434a(a)(8); 11 CFR 102.8(c). Any authorized committee that receives
contributions forwarded by a ``conduit'' is subject to additional
recordkeeping and reporting requirements. See 2 U.S.C. 434a(a)(8); 11
CFR 110.6(c).
Therefore, the Commission proposes new 11 CFR 104.22(e), which
refers to the existing recordkeeping requirements in Commission
regulations and also requires reporting committees to maintain for
three years records of information about any lobbyist/registrant or
lobbyist/registrant PAC that forwards, or is credited with raising, two
or more bundled contributions aggregating in excess of $15,000 during
any covered period. These records would include the name and address of
the lobbyist/registrant or lobbyist/registrant PAC, the employer of the
lobbyist/registrant (if an individual), the dates contributions are
received and forwarded, and the aggregate amount of contributions
bundled for each covered period.
The Commission would urge reporting committees to begin keeping
records of lobbyist/registrants or lobbyist/registrant PACs who
forward, or are credited with raising, bundled contributions as of
January 1, 2008. Any rules promulgated by the Commission will likely
become effective in early 2008, making the first semi-annual reporting
period cover January 1 through June 30, 2008.
The Commission requests comments on this approach.
F. Price Index Increase
New 2 U.S.C. 434(i)(3)(b) requires that the $15,000 disclosure
threshold be indexed for inflation annually, using the Consumer Price
Index as verified by the Secretary of Labor. The proposed rule at 11
CFR 104.22(f) would require that the $15,000 disclosure threshold be
indexed in the same manner as certain contribution limits under the Act
and Commission regulations. See 2 U.S.C. 441a(c) and 11 CFR 110.17. The
Commission proposes regulatory language that is identical to that
already in portions of 11 CFR 110.17, but proposes placing the new
requirement
[[Page 62606]]
in new 11 CFR 104.22 rather than in 11 CFR 110.17 because the dollar
amount in this instance is merely a threshold for disclosure rather
than a contribution limit covered under 11 CFR Part 110. The Commission
requests comments on this approach.
The Commission also requests comments on the timing of the
application of the indexing for inflation requirement. New 2 U.S.C.
434(i) provides that the indexing requirement ``shall apply'' to the
reporting threshold ``[i]n any calendar year after 2007.'' 2 U.S.C.
434i(3)(B). The new law also provides, however, that 2 U.S.C. 434(i)
will go into effect ``with respect to reports filed * * * after the
expiration of the 3-month period which begins on the date that the
regulations required to be promulgated [under new 2 U.S.C. 434(i)]
become final.'' The Commission expects that these proposed rules will
become final in early 2008, and that the new disclosure requirements
will apply to reports filed three months later. Thus, the first semi-
annual reporting period would be January 1 through June 30, 2008, and
the first quarterly reporting period would be April through June, 2008.
Given that 2008 is a ``calendar year after 2007,'' should the
reporting threshold be indexed in 2008? If so, then the effective
reporting threshold would never be $15,000; rather, it would be $15,000
in 2006 (the base period) dollars, as indexed for inflation in 2008.
The Commission requests comments on this interpretation of the new law,
which is not included in the proposed rule.
Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory
Flexibility Act)
The attached proposed rules, if promulgated, would not have a
significant economic impact on a substantial number of small entities.
The basis for this certification is that few, if any, small entities
would be affected by these proposals, which apply only to Federal
candidates and their campaign committees, political committees
established, financed, maintained or controlled by Federal candidates
or individuals holding Federal office, and political committees of
political parties. Authorized committees of Federal candidates would
not be considered small entities under the definition at 5 U.S.C.
601(6). Leadership PACs established, financed, maintained or controlled
by Federal candidates or individuals holding Federal office also would
not qualify as small entities. Such committees, while established by an
individual, are not independently owned and operated because they are
not financed and controlled by a small identifiable group of
individuals; rather, they rely on contributions from a variety of
persons to fund the committee's activities. Political committees
representing the Democratic and Republican parties have a major
controlling influence within the political arena and are thus dominant
in their field. However, to the extent that any party committees
representing major or minor political parties or any other political
committees might be considered ``small organizations,'' the number that
would be affected by this rule is not substantial.
The proposed rules also would not impose any additional
restrictions. Instead, the proposed rules would only require disclosure
of further information already held by the political committees
affected. Therefore, the proposed rules would not have a significant
economic impact on a substantial number of small entities.
List of Subjects
11 CFR Part 100
Elections.
11 CFR Part 104
Campaign funds, political committees and parties, reporting and
recordkeeping requirements.
For the reasons set out in the preamble, the Federal Election
Commission proposes to amend Subchapter A of Chapter 1 of Title 11 of
the Code of Federal Regulations as follows:
PART 100--SCOPE AND DEFINITIONS (2 U.S.C. 431)
1. The authority citation for part 100 is revised to read as
follows:
Authority: 2 U.S.C. 431, 434, and 438(a)(8), and 439a(c).
2. Section 100.5 is amended by adding a new paragraph (e)(7) to
read as follows:
Sec. 100.5 Political committee (2 U.S.C. 431(4), (5), (6)).
* * * * *
(e) * * *
(7) Lobbyist/Registrant PAC means any political committee
established or controlled by a ``lobbyist/registrant,'' as that term is
defined at 11 CFR 104.22(a)(3).
PART 104--REPORTS BY POLITICAL COMMITTEES AND OTHER PERSONS (2
U.S.C. 434)
3. The authority citation for part 104 continues to read as
follows:
Authority: 2 U.S.C. 431(1), 431(8), 431(9), 432(i), 434,
438(a)(8) and (b), 439a, 441a, and 36 U.S.C. 510.
4. Section 104.22 is added to read as follows:
Sec. 104.22 Disclosure of bundling by Lobbyist/Registrants (2 U.S.C.
434(i)).
(a) Definitions--Reporting committee means:
(i) An authorized committee of a Federal candidate as defined at 11
CFR 100.5(f)(1);
(ii) A leadership PAC as defined at 11 CFR 100.5(e)(6); or
(iii) A party committee as defined at 11 CFR 100.5(e)(4).
[Proposed Definition of Covered Period]
(2) Covered period means:
(i) In any calendar year the semi-annual periods of January 1
through June 30 and July 1 through December 31; and
(ii) In any calendar year in which a reporting committee is
required to file or files monthly or quarterly reports pursuant to 11
CFR 104.5, the quarterly periods of January 1 through March 31 and July
1 through September 30 if, during those periods a lobbyist/registrant
or lobbyist/registrant PAC provided two or more bundled contributions
to the reporting committee which aggregate in excess of $15,000.
[Alternative Definition of Covered Period]
(2) Covered period means:
(i) In any calendar year in which a reporting committee is required
to file or files on a quarterly basis pursuant to 11 CFR 104.5, the
quarterly periods of January 1 through March 31, April 1 through June
30, July 1 through September 30 and October 1 through December 31; and
(ii) In any calendar year in which a reporting committee files
semi-annual reports pursuant to 11 CFR 104.5, the semi-annual periods
of January 1 through June 30 and July 1 through December 31.
(3) Lobbyist/Registrant. For purposes of this section, lobbyist/
registrant means a person who, at the time a contribution is forwarded
to, or is received by, a reporting committee, is:
(i) A current registrant under Section 4(a) of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1603(a)); or
(ii) An individual who is named on a current registration or
current report filed under Section 4(b)(6) or 5(b)(2)(C) of the
Lobbying Disclosure Act of 1995 (2 U.S.C. 1603(b)(6) or 1604(b)(2)(C)).
(4) Bundled contribution means any contribution:
(i) Forwarded from the contributor or contributors to the reporting
committee
[[Page 62607]]
by a lobbyist/registrant or lobbyist/registrant PAC ; or
(ii) Received by the reporting committee from the contributor or
contributors, and that is credited by the committee, individual holding
a Federal office or candidate involved to a lobbyist/registrant or
lobbyist/registrant PAC through records, designations, or other means
of recognizing that a certain amount of money has been raised by the
lobbyist/registrant or lobbyist/registrant PAC , except that
(iii) Bundled contributions do not include contributions from the
personal funds of the lobbyist/registrant who forwards or is credited
with raising the contributions or that person's spouse.
(5) The committee or candidate involved means: The reporting
committee; the candidate by whom the authorized committee is
authorized; or the candidate or individual holding Federal office who
directly or indirectly established, finances, maintains or controls the
leadership PAC.
(6) A designation or other means of recognizing bundled
contributions includes titles based on levels of fundraising, access to
reporting committee events reserved exclusively for those who generate
a certain level of contributions, and events provided by a reporting
committee as a reward for successful fundraising.
(b) Reporting requirement.
(1) Each reporting committee must file a form listing each person
reasonably known by the committee to be a lobbyist/registrant or
lobbyist/registrant PAC that provides two or more bundled contributions
(see 11 CFR 104.22(a)(4)) to the reporting committee aggregating in
excess of $15,000 during the covered period. Each form shall set forth:
(i) The name of the lobbyist/registrant or lobbyist/registrant PAC;
(ii) The address of the lobbyist/registrant or lobbyist/registrant
PAC;
(iii) The employer of the lobbyist/registrant; and
(iv) The aggregate amount of bundled contributions provided by the
lobbyist/registrant or lobbyist/registrant PAC to the reporting
committee during the covered period.
(2) In order to comply with paragraph (b)(1) of this section, a
reporting committee must consult the Web sites maintained by the Clerk
of the House of Representatives, the Secretary of the Senate, and the
Federal Election Commission to determine whether, at the time a
contribution was forwarded to, or received by, the reporting committee:
(i) The person was listed as a current registrant under Section
4(a) of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603(a)), or
(ii) The person was an individual listed on a current registration
filed under Section 4(b)(6) or a current report filed under Section
5(b)(2)(C) of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603 or
1604); or
(iii) The person identified itself as a lobbyist/registrant PAC on
its Statement of Organization, FEC Form 1, filed with the Commission;
or
(iv) The person was listed as a political committee established or
controlled by a lobbyist or registrant on a report filed under Sec. 203
(a) of the Honest Leadership and Open Government Act of 2007, amending
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1604).
(c) Where to file. Reporting committees shall file either with the
Secretary of the Senate or with the Federal Election Commission in
accordance with 11 CFR Part 105.
(d) When to file. Reporting committees must file the forms required
under this section with the first report required under 11 CFR 104.5
following the end of each covered period.
(e) Recordkeeping. In addition to any requirements to maintain
records and accounts under 11 CFR 102.8, 102.9 and 110.6, each
reporting committee must maintain for three years after the filing of
the report to which the information relates a record of any bundled
contributions (see 11 CFR 104.22(a)(4)) provided by a lobbyist/
registrant or lobbyist/registrant PAC that aggregate in excess of
$15,000 for any covered period. The information required to be
maintained is:
(1) The name and address of the lobbyist/registrant or lobbyist/
registrant PAC;
(2) The employer of the lobbyist/registrant; and
(3) The amount of bundled contributions provided by the lobbyist/
registrant or lobbyist/registrant PAC for each covered period.
(f) Price index increase.
(1) The threshold for reporting bundled contributions established
in paragraph (d)(1) of this section shall be increased by the percent
difference between the price index as defined at 11 CFR 110.17(d), as
certified to the Commission by the Secretary of Labor, for the 12
months preceding the beginning of the calendar year and the price index
base period.
(2) Each bundling threshold so increased shall be the threshold in
effect for that calendar year.
(3) For purposes of this paragraph (e), the term base period means
calendar year 2006.
(4) Rounding of price index increases. If any amount after the
increases under this paragraph (e) is not a multiple of $100, such
amount shall be rounded to the nearest multiple of $100.
Dated: October 30, 2007.
Robert D. Lenhard,
Chairman, Federal Election Commission.
[FR Doc. E7-21711 Filed 11-5-07; 8:45 am]
BILLING CODE 6715-01-P