Federal Register: November 14, 2003 (Volume 68, Number 220)
DOCID: FR Doc 03-28473
FEDERAL ELECTION COMMISSION
Federal Election Commission
CFR Citation: 11 CFR Parts 110, 113, 9004, and 9034
DOCUMENT ID: [Notice 2003-21]
NOTICE: PROPOSED RULES
ACTION: Federal Election Campaign Act:
DOCUMENT ACTION: Notice of disposition; termination of rulemaking.
SUBJECT CATEGORY:
Mailing Lists of Political Committees
DOCUMENT SUMMARY:
On September 4, 2003, the Commission issued a Notice of Proposed Rulemaking seeking comment on proposed rules that addressed the rental, sale, and exchange of political committee mailing lists, and the treatment and use of proceeds from such transactions. The Commission is not amending its current rules and is terminating this rulemaking at this time for several reasons, including the lack of perceived need by political committees for guidance beyond what has been presented in Commission advisory opinions. Further information is provided in the supplementary information that follows.
SUMMARY:
Political committee mailing lists; sale, rental, and exchange; Terminated,
SUPPLEMENTAL INFORMATION
On September 4, 2003, the Commission issued a Notice of Proposed Rulemaking (``NPRM''), 68 FR 52531 (Sept. 4, 2003). The proposed rules would have set forth the conditions under which the proceeds from the sale, rental, or exchange of a political committee's mailing list would not be contributions to that political committee. The proposed rules would also have prohibited the conversion of an authorized committee's mailing list, or any proceeds from the rental or sale of the list, to the personal use of the candidate or any other person. In addition, the proposed rules would have addressed the sale or rental of mailing lists owned by the authorized committee of a publicly funded presidential candidate. The NPRM sought comments on these rules generally and asked for comments as to specific aspects of mailing list transactions. In particular, the Commission asked for comment on whether the final rules should list specific factors to determine the usual and normal charge for the mailing lists involved in the transactions, and what those factors should be.
The Commission received nine comments in response to the NPRM.
These were from: (1) Charles R. Spies on behalf of the Republican
National Committee; (2) Stephen M. Hoersting on behalf of the National
Republican Senatorial Committee; (3) Donald F. McGahn II, on behalf of
the National Republican Congressional Committee; (4) Joseph E. Sandler
and Robert F. Bauer on behalf of the Democratic National Committee, the Democratic
[[Page 64572]]
Senatorial Campaign Committee, and the Democratic Congressional
Campaign Committee; (5) William W. Hall, on behalf of the Libertarian
National Committee; (6) Lawrence Noble and Paul Sanford on behalf of
the Center for Responsive Politics and FEC Watch; (7) Glen Shor on
behalf of the Campaign Legal Center; (8) Lisa J. Danetz on behalf of
the National Voting Rights Institute; and (9) the law firm of Ryan,
Phillips, Utrecht & MacKinnon. At the public hearing on October 1,
2003, testimony was given by Messrs. Bauer, Hoersting, Shor, McGahn,
and Spies, and Marc E. Elias of Perkins, Coie, LLP. The Commission
received no written comments or testimony from list brokers or other
persons whose business primarily involves the sale or leasing of
mailing lists. Copies of the comments and the transcript of the hearing
are available on the Commission's Web site at http://www.fec.gov.
On November 6, 2003, the Commission voted to close the rulemaking on mailing lists of political committees. The Commission made this decision for several reasons. The written comments and oral testimony of a number of the commenters indicate that the regulated community does not perceive a need for further regulation of political committee mailing list transactions. In general, a number of the commenters believe that Commission advisory opinions, particularly Advisory Opinion 200214 (issued with respect to the rental of mailing lists of the Libertarian National Committee to other entities), have provided clear enough guidance on the conditions under which the proceeds from the sale or rental of mailing lists are not considered contributions to the political committee. The commenters expressed broad opposition to the proposed rules and questioned the need for such rules at this time.
In addition, a number of commenters asserted that there are a
significant number of factors that must be considered in determining
the usual and normal charge and whether the transaction is commercially
reasonable. As several commenters stated, appropriate factors may vary
considerably depending upon the circumstances. Because the Commission
is not currently in possession of a factual record adequate to conclude
that a particular test is sufficiently flexible and comprehensive to
address all circumstances to which the proposed rules would apply, the
Commission has decided not to proceed with final rules at this time, and to terminate this rulemaking.
Dated: November 7, 2003.
Bradley A. Smith,
Vice Chairman, Federal Election Commission.
[FR Doc. 0328473 Filed 111303; 8:45 am]
BILLING CODE 671501P
FOR FURTHER INFORMATION CONTACT
Ms. Mai T. Dinh, Acting Assistant General Counsel, or Mr. Jonathan M. Levin, Senior Attorney, 999 E Street, NW., Washington, DC 20463, (202) 6941650 or (800) 4249530.