Rule2023-11055
Contributions in the Name of Another
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 25, 2023
Effective
August 5, 2023
Issuing agencies
Federal Election Commission
Abstract
The Commission is removing the regulatory prohibition on knowingly helping or assisting any person in making a contribution in the name of another. The Commission is taking this action to implement the order of the United States District Court in FEC v. Swallow, which enjoined the Commission from enforcing the provision and ordered the Commission to strike it from the Code of Federal Regulations. The Commission is accepting comments on this revision to its regulations and any comments received may be addressed in a subsequent rulemaking document.
Full Text
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<title>Federal Register, Volume 88 Issue 101 (Thursday, May 25, 2023)</title>
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[Federal Register Volume 88, Number 101 (Thursday, May 25, 2023)]
[Rules and Regulations]
[Pages 33816-33817]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11055]
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FEDERAL ELECTION COMMISSION
11 CFR Part 110
[Notice 2023-09]
Contributions in the Name of Another
AGENCY: Federal Election Commission.
ACTION: Interim final rule.
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SUMMARY: The Commission is removing the regulatory prohibition on
knowingly helping or assisting any person in making a contribution in
the name of another. The Commission is taking this action to implement
the order of the United States District Court in FEC v.
[[Page 33817]]
Swallow, which enjoined the Commission from enforcing the provision and
ordered the Commission to strike it from the Code of Federal
Regulations. The Commission is accepting comments on this revision to
its regulations and any comments received may be addressed in a
subsequent rulemaking document.
DATES: This interim final rule is effective August 5, 2023. Comments
must be received on or before June 26, 2023.
ADDRESSES: All comments must be in writing. Commenters are encouraged
to submit comments electronically via the Commission's website at
<a href="https://sers.fec.gov/fosers">https://sers.fec.gov/fosers</a>, reference REG 2018-06, to ensure timely
receipt and consideration. Alternatively, comments may be submitted in
paper form addressed to the Federal Election Commission, Attn.: Amy L.
Rothstein, Assistant General Counsel, 1050 First Street NE, Washington,
DC 20463.
Each commenter must provide, at a minimum, the commenter's first
name, last name, city, and state. All properly submitted comments,
including attachments, will become part of the public record, and the
Commission will make comments available for public viewing on the
Commission's website and in the Commission's Public Records Office.
Accordingly, commenters should not provide in their comments any
information that they do not wish to make public, such as a home street
address, personal email address, date of birth, phone number, social
security number, or driver's license number, or any information that is
restricted from disclosure, such as trade secrets or commercial or
financial information that is privileged or confidential.
FOR FURTHER INFORMATION CONTACT: Ms. Amy L. Rothstein, Assistant
General Counsel, or Ms. Cheryl A. Hemsley, Attorney, (202) 694-1650 or
(800) 424-9530.
SUPPLEMENTARY INFORMATION: The Federal Election Campaign Act, 52 U.S.C.
30101-30145 (``FECA''), states that ``[n]o person shall make a
contribution in the name of another person or knowingly permit his name
to be used to effect such a contribution, and no person shall knowingly
accept a contribution made by one person in the name of another
person.'' 52 U.S.C. 30122. The Commission has implemented this
provision at 11 CFR 110.4, which states that no person may
``[k]nowingly help or assist any person in making a contribution in the
name of another.'' 11 CFR 110.4(b)(1)(iii).
On April 6, 2018, the United States District Court for the District
of Utah issued a memorandum decision and order holding that the
Commission's regulation at 11 CFR 110.4(b)(1)(iii) was invalid,
enjoining the Commission from enforcing that provision, and ordering
the Commission to strike the provision from the Code of Federal
Regulations.\1\ FEC v. Swallow (Swallow I), 304 F. Supp. 3d 1113 (D.
Utah 2018); FEC v. Swallow (Swallow II), No. 2:15-CV-00439 (D. Utah
Sept. 20, 2018) (Westlaw) (order granting partial final judgment). To
conform its regulation to the court orders in Swallow I and II, the
Commission is removing 11 CFR 110.4(b)(1)(iii) and renumbering
paragraph (b)(1)(iv) as paragraph (b)(1)(iii). The Commission is
accepting comments on this revision and any comments received may be
addressed in a subsequent rulemaking document.
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\1\ After adverse decisions, agencies are permitted in certain
circumstances to maintain the invalidated interpretation of the
statute or regulation in later matters that will come before courts
in other jurisdictions. See, e.g., Indep. Petroleum Ass'n v.
Babbitt, 92 F.3d 1248, 1261 (D.C. Cir. 1996). Agencies may only
decline to accord court rulings nation-wide effect, however, as part
of a search for eventual rulings from different Courts of Appeals
and the Supreme Court. See, e.g., Va. Soc'y for Human Life, Inc. v.
FEC, 263 F.3d 379, 393-94 (4th Cir. 2001) (overturning nationwide
injunction against Commission to permit development of the law). In
declining to appeal to the Court of Appeals, the Commission chose
not to take this path in this case. See Indep. Petroleum Ass'n, 92
F.3d at 1261.
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The Commission is taking this action without advance notice and
comment because it falls under the ``good cause'' exception of the
Administrative Procedure Act (``APA''), 5 U.S.C. 553(b)(B). The
revisions are necessary to conform the Commission's regulations to the
court's orders. Because this action does not involve any Commission
discretion or policy judgments, notice and comment are unnecessary. 5
U.S.C. 553(b)(B), (d)(3). Moreover, because this interim final rule is
exempt from the APA's notice and comment procedure under 5 U.S.C.
553(b), the Commission is not required to conduct a regulatory
flexibility analysis under 5 U.S.C. 603 or 604. See 5 U.S.C. 601(2),
604(a).
List of Subjects in 11 CFR Part 110
Campaign funds, Political committees and parties.
For the reasons set out in the preamble, the Federal Election
Commission amends 11 CFR chapter I as follows:
PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS
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1. The authority citation for part 110 continues to read as follows:
Authority: 52 U.S.C. 30101(8), 30101(9), 30102(c)(2) and (g),
30104(i)(3), 30111(a)(8), 30116, 30118, 30120, 30121, 30122, 30123,
30124, and 36 U.S.C. 510.
Sec. 110.4 [Amended]
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2. Amend Sec. 110.4 by:
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a. Adding the word ``or'' at the end of paragraph (b)(1)(ii);
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b. Removing paragraph (b)(1)(iii); and
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c. Redesignating paragraph (b)(1)(iv) as paragraph (b)(1)(iii).
Dated: May 18, 2023.
On behalf of the Commission.
Dara S. Lindenbaum,
Chair, Federal Election Commission.
[FR Doc. 2023-11055 Filed 5-24-23; 8:45 am]
BILLING CODE 6715-01-P
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</html>Indexed from Federal Register on May 25, 2023.
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