Proposed Rule on campaign donation changes ...

[NVMojo]

Political Party Committees Donating Funds to Certain Tax-Exempt
Organizations and Political Organizations

AGENCY: Federal Election Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Election Commission requests comments on proposed
amendments to its rules governing limitations on national, State,
district, and local political party committees making or directing
donations to certain tax-exempt organizations and political
organizations. These proposed rules would conform to the decision of
the U.S. Supreme Court in McConnell v. FEC, which included a narrowing
construction of section 101 of the Bipartisan Campaign Reform Act of
2002. The Commission has not made any final decisions on the issues
presented in this rulemaking. Further information is provided in the
SUPPLEMENTARY INFORMATION that follows.

DATES: Comments must be received on or before January 10, 2005. If the
Commission receives sufficient requests to testify, it may hold a
hearing on these proposed rules. Commenters wishing to testify at the
hearing must so indicate in their written or electronic comments.

snip....

In 2002, the Commission promulgated rules at 11 CFR 300.11, 300.37,
300.50, and 300.51 implementing 2 U.S.C. 441i(d). Explanation and
Justification for Rules on Prohibited and Excessive Contributions: Non-
Federal Funds or Soft Money, 67 FR 49,064, 49,089-49,091, and 49,105-
49,106 (July 29, 2002). Except for the title of each, the final rule at
11 CFR 300.11 is identical to the final rule at 11 CFR 300.50, and the
final rule at 11 CFR 300.37 is identical to the final rule at 11 CFR
300.51. Id. at 49,106.
Subsequently, the Supreme Court upheld 2 U.S.C. 441i(d)'s
prohibitions on the solicitation of funds for certain tax-exempt
organizations. In a separate analysis, however, the Supreme Court
stated that 2 U.S.C. 441i(d) raises overbreadth concerns ``if read to
restrict donations from a party's federal account--i.e., funds that
have already been raised in compliance with FECA's source, amount and
disclosure limitations.'' McConnell, 124 S. Ct. at 680-681. The Court
found ``no evidence that Congress was concerned about, much less that
it intended to prohibit, donations of money already fully regulated by
FECA * * * hus, political parties remain free to make or direct
donations of money to any tax-exempt organization that has otherwise
been raised in compliance with FECA.'' Id. at 681-682. Accordingly, the
Commission now proposes to modify its regulations at 11 CFR 300.11,
300.37, 300.50 and 300.51 to provide that the prohibition on political
party committees \1\ making or directing donations to certain tax-
exempt organizations is limited to donations of non-Federal funds and
thus would not apply to donations of Federal funds to these
organizations.

snip...



I. Proposed 11 CFR 300.11--Prohibitions on Fundraising For And Donating
To Certain Tax-Exempt Organizations

The Commission proposes to revise 11 CFR 300.11 by modifying the
prohibition in current section 300.11 on national party committees,
making or directing any donations to certain tax-exempt organizations.
As modified, section 300.11 would prohibit the making or directing of
donations of non-Federal funds to these organizations. Section 300.2(k)
defines ``non-Federal funds'' as funds that are not subject to the
limitations and prohibitions of the Act. 11 CFR 300.2(k).
As revised, section 300.11 would be consistent with 2 U.S.C.
441i(a)(1) and 11 CFR 300.10, under which national party committees may
not solicit, receive, or direct to another person a contribution,
donation or transfer of funds or any other thing of value, or spend any
funds, not subject to the amount limitations, source prohibitions and
reporting requirements of the Act, because national party committees
are barred from accepting non-Federal funds.
Although only national party committees are the subject of the
prohibitions in section 300.11, current paragraph 300.11(b)(3)
erroneously expands the scope of these restrictions to include ``an
agent of a national, State, district, or local party committee of a
political party'' . Accordingly, the Commission also
proposes to make a technical correction to paragraph 300.11(b)(3) which
would strike the reference to a State, district, or local party
committee.

and more ....

http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-27025.htm