Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59775

1The Joint Congressional Committee on Inaugural 

Ceremonies, which is formed by a Congressional 

resolution every four years, several months in 

advance of the Presidential election, plans and 

finances the Presidential inaugural events held at 

the Capitol, including the swearing-in ceremony 

and the Congressional luncheon to honor the 

President and Vice-President.

however, be paid or reimbursed from 

revolving loan fund assets that are not 

RFP grant funds, including revolved 

funds and cash originally contributed by 

the grant recipient.

Subpart C—Revolving Fund Program 

Loans

§ 1783.14 What are the eligibility criteria 

for RFP loan recipients? 

(a) A loan recipient must be an 

eligible entity as defined in § 1783.3. 

(b) The loan recipient must be unable 

to finance the proposed project from 

their own resources or through 

commercial credit at reasonable rates 

and terms. 

(c) The loan recipient must have or 

will obtain the legal authority necessary 

for owning, constructing, operating and 

maintaining the proposed service or 

facility, and for obtaining, giving 

security for, and repaying the proposed 

loan. 

(d) The project funded by the 

proceeds of an RFP loan must be located 

in, or the services provided as the result 

of such project must benefit, rural areas.

§ 1783.15 What are the terms of RFP 

loans? 

(a) RFP loans under this part—

(1) Shall have an interest rate that is 

determined by the grant recipient and 

approved by RUS; 

(2) Shall have a terms not to exceed 

10 years; and 

(3) Shall not exceed the lesser of 

$100,000 or 75 percent of the total cost 

of a project. The total outstanding 

balance for all loans under this program 

to any one entity shall not exceed 

$100,000. 

(b) The grant recipient must set forth 

the RFP loan terms in written 

documentation signed by the loan 

recipient. 

(c) Grant recipients must develop and 

use RFP loan documentation that 

conforms to the terms of this part, the 

grant agreement, and the laws of the 

state or states having jurisdiction.

§ 1783.16 How will the loans given from 

the revolving fund be serviced? 

The grant recipient shall be 

responsible for servicing all loans, to 

include preparing loan agreements, 

processing loan payments, reviewing 

financial statements and debt reserves 

balances, and other responsibilities such 

as enforcement of loan terms. Loan 

servicing will be in accordance with the 

work plan approved by the Agency 

when the grant is awarded for as long 

as any loan made in whole or in part 

with Agency grant funds is outstanding.

Dated: September 2, 2004. 

Curtis M. Anderson, 

Acting Administrator, Rural Utilities Service.

[FR Doc. 04–22446 Filed 10–5–04; 8:45 am] 

BILLING CODE 3410–15–P

FEDERAL ELECTION COMMISSION

11 CFR Parts 104 and 110 

[Notice 2004–13] 

Presidential Inaugural Committee 

Reporting and Prohibition on 

Accepting Donations From Foreign 

Nationals

AGENCY: Federal Election Commission.

ACTION: Final rules and transmittal of 

regulations to Congress. 

SUMMARY: The Federal Election 

Commission is promulgating new rules 

regarding disclosure requirements for 

Presidential inaugural committees. The 

new rules also ban inaugural 

committees from accepting donations 

from foreign nationals. These 

regulations implement requirements of 

the Bipartisan Campaign Reform Act of 

2002. Further information is provided in 

the Supplementary Information that 

follows.

EFFECTIVE DATE: November 5, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. 

Brad C. Deutsch, Assistant General 

Counsel, or Ms. Esa L. Sferra, Attorney, 

999 E Street, NW., Washington, DC 

20463, (202) 694–1650 or (800) 424–

9530.

SUPPLEMENTARY INFORMATION: Section 

308 of the Bipartisan Campaign Reform 

Act of 2002 (‘‘BCRA’’), Public Law 107–

1555, 116 Stat. 81 (March 27, 2002), 

amended 36 U.S.C. 510 by establishing 

new requirements for Presidential 

inaugural committees regarding 

reporting and acceptance of certain 

donations. The Commission is issuing 

these final rules to implement these new 

requirements for inaugural committees. The Presidential inaugural committee 

is appointed by the President-elect to be 

in charge of the Presidential inaugural 

ceremony and the functions and 

activities connected with the ceremony. 

36 U.S.C. 501(1). The inaugural 

committee plans and finances all 

inaugural events, other than the 

swearing-in ceremony at the Capitol and 

the luncheon honoring the President 

and Vice-President,1 including opening 

ceremonies, the parade, galas, and balls. 

The inaugural committee also receives 

special privileges in the District of 

Columbia beginning five days before 

and ending four days after the inaugural 

ceremony. Chapter 5 of title 36 of the 

United States Code authorizes Congress 

to make appropriations for the 

inauguration, however, the 

appropriations are limited to funding for 

the District of Columbia to pay for the 

costs of municipal services associated 

with the inaugural events. Accordingly, 

the inaugural committee accepts 

donations to cover the costs associated 

with all other inaugural events.

BCRA section 308 amended 36 U.S.C. 

510 to require the inaugural committee 

to disclose, in a report filed with the 

Commission within 90 days after the 

inaugural ceremony, certain donations 

made to the inaugural committee, and to 

ban the inaugural committee from 

accepting donations from foreign 

nationals. Accordingly, the Commission 

is adding new 11 CFR 104.21 to its 

reporting rules, in 11 CFR part 104, to 

set forth inaugural committee reporting 

requirements. The Commission is also 

adding to the rules regarding foreign 

nationals at 11 CFR 110.20 a new 

paragraph banning both the acceptance 

by inaugural committees of donations 

from foreign nationals, as well as the 

making of such donations. 

Under the Administrative Procedures 

Act, 5 U.S.C. 553(d), and the 

Congressional Review of Agency 

Rulemaking Act, 5 U.S.C. 801(a)(1), 

agencies must submit final rules to the 

Speaker of the House of Representatives 

and the President of the Senate and 

publish them in the Federal Register at 

least 30 calendar days before they take 

effect. The final rules on inaugural 

committees were transmitted to 

Congress on September 30, 2004. 

Explanation and Justification 

On April 7, 2004, the Commission 

published a Notice of Proposed 

Rulemaking (‘‘NPRM’’) in the Federal 

Register containing proposed rules to 

implement BCRA’s amendment to 36 

U.S.C. 510 that requires disclosure of 

certain donations to Presidential 

inaugural committees and bans the 

acceptance of donations from foreign 

nationals by Presidential inaugural 

committees. 69 FR 18301 (April 7, 

2004). The Commission sought 

comments on several issues raised in 

the NPRM and on the proposed rules in 

general. The comment period ended 

May 7, 2004. The Commission received 

three comments, two from individuals

59776 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 

2The District of Columbia has statutory authority 

to regulate many aspects of the activities of the 

inaugural committee, such as the inaugural parade 

route, public safety at inaugural events, and 

concession sales permits at inaugural events. See 36 

U.S.C. 502, 503, and 505.

and a letter from the Internal Revenue 

Service. The Internal Revenue Service 

letter indicated that it had ‘‘no 

comments.’’

I. 11 CFR 104.21 Reporting by 

Inaugural Committees 

BCRA section 308 sets forth for the 

first time a reporting scheme for 

inaugural committees. Paragraph (a) of 

new 11 CFR 104.21 defines the terms 

‘‘inaugural committee’’ and ‘‘donation.’’

Paragraph (b) sets forth the initial letterfiling for inaugural committees. 

Paragraph (c) contains reporting 

requirements. Paragraph (d) sets forth 

recordkeeping requirements similar to 

the Commission’s regulations for other 

persons who file reports with the 

Commission. 

1. 11 CFR 104.21(a)—Definitions 

Paragraph (a)(1) of 11 CFR 104.21 

defines ‘‘inaugural committee.’’ The 

definition is identical to that found in 

36 U.S.C. 501(1) and in the municipal 

regulations of the District of Columbia 

(see D.C. Mun. Regs., tit. 24, section 

899).2 The definition states that an 

‘‘inaugural committee’’ is the committee 

appointed by the President-elect to be in 

charge of the Presidential inaugural 

ceremony, and functions and activities 

connected with the ceremony. This 

definition presumes that only one 

inaugural committee will be named by 

the President-elect every four-years.

Paragraph (a)(2) of 11 CFR 104.21 

defines ‘‘donation’’ by reference to the 

existing definition of ‘‘donation’’ in 11 

CFR 300.2(e). The NPRM proposed a 

definition of ‘‘donation’’ that was 

similar to 11 CFR 300.2(e), but applied 

only to inaugural committees. The 

Commission received no comments on 

this definition of donation. The 

Commission has decided to define 

‘‘donation’’ in the final rules by simply 

referring to the existing definition in 

section 300.2(e), rather than creating a 

separate, and potentially confusing 

definition applicable only to inaugural 

committees. 

2. 11 CFR 104.21(b)—Initial LetterFiling by Inaugural Committees 

New 11 CFR 104.21(b) sets forth the 

steps necessary for a committee 

appointed by the President-elect to be 

considered the inaugural committee. 

BCRA section 308 expressly provides 

that a committee must ‘‘agree to’’ abide 

by the applicable reporting 

requirements and the ban on acceptance 

of donations from foreign nationals in 

order to be considered the inaugural 

committee. 36 U.S.C. 510(a). The 

Commission interprets this statutory 

language to require an affirmative act on 

the part of the committee wishing to be 

recognized as the official inaugural 

committee. Therefore, inaugural 

committees must file a signed letter 

with the Commission stating that the 

committee agrees to abide by the 

requirements applicable to inaugural 

committees. In the letter, an inaugural 

committee must designate a person as 

its point of contact with the 

Commission. 

The Commission sought comment on 

whether such a letter-filing is necessary 

and received no comments. The 

Commission also sought comments on 

whether a new FEC form is preferable to 

a letter-filing, and whether an inaugural 

committee should be free to designate a 

person other than its chairperson or 

other officer as a point of contact with 

the Commission. One commenter stated 

that a letter-filing is preferable because 

it reduces paperwork. The Commission 

agrees that a letter-filing satisfies the 

conditions set forth in BCRA’s statutory 

language and that a new FEC form is 

unnecessary. The Commission 

concludes that the chairperson or any 

other officer is an appropriate person to 

serve as an inaugural committee’s point 

of contact because such person is 

involved in the administration of the 

committee. The new rule provides 

flexibility for an inaugural committee to 

appoint whichever officer might be the 

most knowledgeable about matters 

relevant to FEC filing requirements and 

interactions.

Accordingly, the new rule requires an 

inaugural committee to file a letter with 

the Commission within 15 days of being 

appointed by the President-elect. Fifteen 

days is the same amount of time as the 

President-elect had to designate a 

principal campaign committee after 

becoming a candidate. See 2 U.S.C. 

432(e)(1) and 11 CFR 102.12(a). The 

letter-filing must contain the name and 

address of the inaugural committee, the 

name of its chairperson or other officer 

who will serve as the point of contact 

for the Commission, and a statement 

indicating that the inaugural committee 

will comply with the reporting and 

recordkeeping requirements in 11 CFR 

104.21(c) and (d) and the ban on 

accepting donations from foreign 

nationals in 11 CFR 110.20(j). The letter 

must be signed by an official of the 

inaugural committee with authority to 

make the required statement regarding 

compliance with Commission 

regulations. 

Additionally, new paragraph (b) sets 

forth procedures for the assignment of a 

FEC committee identification number 

(‘‘FECID’’) upon receipt by the 

Commission of an inaugural 

committee’s letter-filing, and sets forth 

the requirement that the inaugural 

committee must include the FECID in 

any subsequent communications or 

filings with the Commission. This 

additional language mirrors the 

language of 11 CFR 102.3(c), which 

contains similar procedures and 

requirements for political committees, 

and will help the Commission track and 

organize information provided by 

inaugural committees for public use. 

3. 11 CFR 104.21(c)—Reporting 

Requirements for Inaugural Committees 

New 11 CFR 104.21(c) sets forth the 

inaugural committee reporting 

requirements that satisfy the disclosure 

provisions contained in BCRA section 

308. To facilitate inaugural committee 

reporting, the Commission is creating a 

new form, FEC Form 13, which an 

inaugural committee must use to file its 

report containing the required 

information regarding donations to the 

committee. 

New paragraph (c)(1) requires the 

chairperson or other officer identified in 

the letter-filing required by paragraph 

(b) of 11 CFR 104.21 to be responsible 

for signing (or, in the case of electronic 

filing, verifying) and filing the report. 

The Commission sought comment on 

the signature requirement and received 

no comments. Although BCRA section 

308 does not explicitly require a 

signature on the report, the Federal 

Election Campaign Act of 1971, as 

amended, requires that the Commission 

‘‘provide methods * * * for verifying 

designations, statements, and reports 

* * *.’’ 2 U.S.C. 434(a)(11)(C). 

Additionally, the Commission’s 

reporting regulations provide generally 

that ‘‘[e]ach individual having the 

responsibility to file a designation, 

report or statement * * * shall sign the 

original designation, report or 

statement,’’ unless it is electronically 

filed. 11 CFR 104.14(a). Accordingly, 

the Commission requires a signature on 

(or, in the case of electronic filing, a 

verification for) each FEC Form 13 in 

accordance with 11 CFR 104.14(a). The 

signature on (or verification of) the 

filing signifies that the inaugural 

committee’s report, or any supplement 

thereto, is complete and correct as of the 

date of the filing. 

New paragraph (c)(2) implements the 

statutory requirement that an inaugural 

committee must file a report with the 

Commission no later than 90 days after 

the date of the inaugural ceremony. In

Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59777

3Although an inaugural committee is required 

only to report donations that have been accepted

(i.e., donations deposited into a committee’s 

account), the statute requires that the committee 

report ‘‘the date the donation is received,’’ which 

may be different from the date the donation is 

accepted. 36 U.S.C. 510(b)(1)(B) (emphasis added).

4This approach is consistent with Commission 

regulations in 11 CFR 100.53 that indicate that the 

entire amount paid to attend a political committee 

fundraiser or political event is a contribution.

keeping with other reporting deadlines 

in Commission regulations, the new rule 

requires that the report be received by 

the Commission by 11:59 p.m. Eastern 

Standard/Daylight Time on the 90th day 

after the date of the inaugural ceremony. 

See generally, 11 CFR 100.19(b). 

Additionally, because BCRA requires 

an inaugural committee to disclose ‘‘any

donation of money or anything of value 

made to the committee in an aggregate 

amount equal to or greater than $200,’’

2 U.S.C. 510(b)(1) (emphasis added), the 

Commission has modified paragraph 

(c)(2) from the paragraph proposed in 

the NPRM to clarify that an inaugural 

committee must file supplements, as 

necessary, to ensure that it discloses 

each reportable donation, regardless of 

when the inaugural committee accepts 

such a donation. Accordingly, an 

inaugural committee must file a 

supplement with the Commission 

within 90 days of the date of the 

committee’s last filing, of either its 

report or its most recent supplement. If 

an inaugural committee does not accept 

any reportable donations, or make any 

refunds, within 90 days of the end of the 

‘‘covering period’’ of its last filing, as 

discussed below, then it does not need 

to file a supplement. However, if an 

inaugural committee accepts a 

reportable donation, or makes a refund, 

at any point thereafter, the committee 

must then file a supplement reporting 

such donation or refund within 90 days 

of accepting the donation or making the 

refund. 

New paragraph (c)(3) states that all 

letters, reports, and amendments filed 

by inaugural committees must be filed 

with the Commission. 

New paragraph (c)(4) sets forth the 

methods by which an inaugural 

committee may file its report and 

supplements. The Commission received 

no comments on whether inaugural 

committees should be required to file 

electronically. The Commission has 

concluded that inaugural committees 

are not subject to the Commission’s 

mandatory electronic filing 

requirements because these 

requirements apply only if a person 

receives or makes, or has reason to 

expect to receive or make, in excess of 

$50,000 in contributions or 

expenditures in a calendar year. 11 CFR 

104.18(a)(1). The funds accepted by an 

inaugural committee are donations, not 

contributions or expenditures, and 

therefore are not subject to mandatory 

electronic filing. Although, the final 

rules do not make inaugural committees 

subject to the Commission’s mandatory 

electronic filing requirements, they do 

permit inaugural committees to use the 

Commission’s electronic filing system 

on a voluntary basis under 11 CFR 

104.18(b). Accordingly, inaugural 

committees may file their reports either 

on paper or electronically. 

New paragraph (c)(5) requires an 

inaugural committee to file its report 

using new FEC Form 13. 

New paragraph (c)(6) sets forth the 

information inaugural committees must 

disclose in their reports. Inaugural 

committees must report all donations 

accepted by them that aggregate $200 or 

more from a donor. 36 U.S.C. 510(b)(1). 

The statute also requires disclosure of 

(1) the name and address of each person 

making donations that aggregate $200 or 

more; (2) the amount of each such 

donation; and (3) the date that each 

such accepted donation was received. 

36 U.S.C. 510(b)(2).3 Accordingly, the 

Commission is requiring the itemization 

of each accepted donation of $200 or 

more, and each accepted donation, 

regardless of amount, from a person 

whose total donations equal or exceed 

$200. The Commission notes that 

donations include the entire amount 

paid for any ticket for an inaugural 

event, whether paid to the inaugural 

committee, or an agent thereof, such as 

a vendor hired by a committee.4

Under paragraph (c)(6), for each 

person (as defined in 11 CFR 100.10) 

making a reportable donation, an 

inaugural committee must report on 

Schedule A of FEC Form 13 the person’s 

full name and mailing address, and the 

date of receipt and amount of each 

donation. In the case of an individual 

making a donation, ‘‘full name’’ means 

the individual’s first name, middle 

name or initial, if available, and last 

name. In the case of all other persons, 

‘‘full name’’ means the entity’s full legal 

name. See, e.g., 11 CFR 100.12. This 

disclosure requirement for inaugural 

committees is similar to the 

requirements applicable to political 

committees under 11 CFR 104.3(a)(4)(i). 

To ensure accurate reporting, and to 

provide inaugural committees with a 

means to show compliance with the ban 

on acceptance of donations from foreign 

nationals, the Commission is requiring 

inaugural committees also to report 

refunds. Thus an inaugural committee 

must itemize each refund of a 

previously, or contemporaneously, 

reported donation. 

Additionally, to enhance disclosure, 

inaugural committees must report 

aggregated information for all reported 

donations and refunds, which provides 

the public with information about an 

inaugural committee’s total reportable 

activity from its appointment through 

the date covered in its most recent 

filing. Specifically, an inaugural 

committee must report a cumulative 

total of itemized donations, a 

cumulative total of itemized refunds, 

and a cumulative calculation of net 

donations, which is a calculation of 

total itemized donations minus total 

itemized refunds. This reporting 

requirement is similar to Commission 

regulations at 11 CFR 104.3(a), which 

requires political committees to disclose 

total contributions and total refunds. 

Under paragraph (c)(6), an inaugural 

committee’s report must itemize all 

reportable donations accepted and all 

refunds made from the date of its 

appointment by the President-elect 

through a date chosen by the inaugural 

committee that is within 15 days of the 

date the committee files its report. This 

‘‘covering period’’ is included in the 

final rule to provide an inaugural 

committee with the flexibility of 

choosing a close-of-books date and a 15-

day window during which it can 

prepare and finalize its report. Under 

this paragraph, supplements to a report 

also have a ‘‘covering period,’’ which 

starts on the day after the end of the 

covering period of the most recent filing 

and ends on a date, again chosen by the 

inaugural committee, that is within 15 

days of the date the committee files any 

such supplement. 

Inaugural committees must report the 

above information on Form 13, which 

consists of a Summary Page and 

Schedules A and B. The Summary Page 

provides a cumulative summary of the 

committee’s total reportable activity 

from its appointment through the end of 

the covering period of the filing. An 

inaugural committee must provide on 

the Summary Page cumulative totals for 

(1) itemized donations, (2) itemized 

refunds, and (3) net donations (i.e.

itemized donations minus any refunds). 

Schedules A and B of Form 13 provides 

detailed information about the 

committee’s reportable activity during 

the covering period of the filing. An 

inaugural committee must itemize on 

Schedule A each previously unreported 

donation of $200 or more, as well as any 

donation from a person whose 

donations total $200 or more, and must 

itemize on Schedule B each refund of a 

previously, or contemporaneously, 

reported donation.

Additionally, an inaugural committee 

must designate on the Summary Page

59778 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 

whether a filing constitutes its report or 

a supplement to its report, or an 

amendment correcting information in a 

previous filing. 

Accordingly, paragraph (c)(6) states 

that each report, and any supplement 

thereto, filed by an inaugural committee 

must list (1) the ‘‘covering period,’’ (2) 

a cumulative summary of reported 

donations, refunds, and net donations, 

(3) an itemization of previously 

unreported donations that are $200 or 

more, and donations, regardless of 

amount, from a person whose donations 

aggregate $200 or more, and (4) an 

itemization of previously unreported 

refunds of all previously, or 

contemporaneously, reported donations. 

Lastly, the Commission notes that 

neither BCRA nor the Commission’s 

new reporting rules contemplate 

disclosure of disbursements by 

inaugural committees. 

4. 11 CFR 104.21(d)—Recordkeeping 

New 11 CFR 104.21(d) requires an 

inaugural committee to maintain 

records in accordance with the 

Commission recordkeeping 

requirements in 11 CFR 104.14. The 

Commission sought comments on 

whether inaugural committees should 

be subject to recordkeeping 

requirements, and, if so, whether they 

should be required to comply with the 

Commission’s established 

recordkeeping regulations for political 

committees, see 11 CFR 104.14(b), or a 

different set of rules specifically created 

for inaugural committees. No 

commenters addressed this topic. The 

Commission concludes that an 

inaugural committee must maintain 

records that relate to any reportable 

donations in accordance with 11 CFR 

104.14. 

II. 11 CFR 110.20 Prohibition on 

Contributions, Donations, Expenditures, 

Independent Expenditures, and 

Disbursements by Foreign Nationals 

1. 11 CFR 110.20(j)—Donations by 

Foreign Nationals to Inaugural 

Committees 

BCRA section 308 prohibits an 

inaugural committee from accepting 

foreign national donations. 36 U.S.C. 

510(c). Accordingly, the Commission is 

promulgating new paragraph (j) of 11 

CFR 110.20 to implement this 

prohibition. 

The NPRM proposed prohibiting the 

solicitation and receipt, in addition to 

the acceptance, of foreign national 

donations by inaugural committees. In 

order to more closely track the statute, 

which prohibits only acceptance of 

foreign national donations, the final 

rules do not prohibit inaugural 

committees from soliciting or receiving 

these donations. The Commission 

received no comments on the proposed 

prohibition of such activity; however, 

one commenter agreed generally with a 

ban on foreign national donations. 

Additionally, although BCRA section 

308 does not expressly include a 

‘‘knowingly’’ standard for inaugural 

committees’ acceptance of donations 

from foreign nationals, the Commission 

has previously read a ‘‘knowingly’’

standard into other statutory provisions 

banning acceptance of foreign national 

contributions and donations by other 

persons. See 11 CFR 110.20(g); Final 

Rule and Explanation and Justification, 

‘‘Contribution Limits and Prohibitions,’’

67 FR 69928, 69940 (November 19, 

2002). In promulgating those rules 

banning contributions from foreign 

nationals, the Commission determined 

that ‘‘a knowledge requirement may 

produce a less harsh result’’ based on 

the Commission’s prior enforcement 

experience with the frequent 

involvement of volunteers in the 

solicitation and receipt of contributions 

and donations. Id. at 69941. Therefore, 

to provide inaugural committees with 

the same protection, the new paragraph 

(j) prohibits only knowing acceptance of 

a donation from a foreign national. 

‘‘Knowingly’’ is defined in 11 CFR 

110.20(a). 

Although BCRA section 308 does not 

explicitly forbid foreign nationals from 

making donations to an inaugural 

committee, the Commission also sought 

comment on whether a prohibition on 

the direct or indirect making of 

donations by foreign nationals is a 

permissible interpretation of BCRA 

section 308, as a necessary implication 

of the prohibition on the acceptance of 

such donations by inaugural 

committees. The Commission received 

no comments. 

Consistent with the structure of 

current section 110.20, which 

implements BCRA’s other prohibitions 

on foreign national money and other 

things of value, the Commission has 

determined that in order to effectuate 

BCRA’s ban on acceptance of donations 

from foreign nationals, it is also 

necessary to impose a ban on the direct 

or indirect making of donations by 

foreign nationals to an inaugural 

committee. Therefore, the final rule at 

11 CFR 110.20(j) prohibits both the 

acceptance of a donation from a foreign 

national by an inaugural committee, as 

well as the making of such a donation 

by a foreign national. 

III. Enforcement Authority 

BCRA established the Commission’s 

responsibility to ‘‘promulgate 

regulations to carry out [BCRA] and the 

amendments made by [BCRA].’’ BCRA 

section 402(c). In the NPRM, the 

Commission sought comment on 

whether it specifically has authority to 

enforce new rules pertaining to 

inaugural committees, including the 

authority to audit inaugural committees, 

or whether the Commission’s authority 

is limited to receiving the reports 

required by BCRA section 308 and 

making them available to the public. 

One commenter questioned the 

Commission’s enforcement authority.

Although BCRA does not explicitly 

charge the Commission, or any other 

agency or entity, with enforcement of 

the amendment made to 36 U.S.C. 

chapter 5, the Commission has the 

responsibility to promulgate rules to 

implement the amendment and, as part 

of this authority, may fill in gaps left by 

Congress. See Railway Labor Executives’

Ass’n v. Nat’l Mediation Bd., 29 F.3d 

655, 669 (D.C. Cir. 1994) (‘‘Agencies 

owe their capacity to act to the 

delegation of authority, either express or 

implied, from the legislature.’’); see also 

Chevron v. Natural Resources Defense 

Council, Inc., 467 U.S. 837, 844 (1984) 

(‘‘The power of an administrative 

agency to administer a congressionally 

created * * * program necessarily 

requires the formulation of policy and 

the making of rules to fill any gap left, 

implicitly or explicitly, by Congress.’’). 

Therefore, the Commission concludes 

that it has implied enforcement 

authority because the authority to 

promulgate Commission rules 

necessarily implies the authority to 

enforce those rules. Enforcement 

authority with regard to foreign national 

donations to inaugural committees, and 

reporting by inaugural committees is 

fully consistent with the Commission’s 

enforcement authority as to other 

foreign national donations and reporting 

by political committees. 

The Commission notes that the Mayor 

of the District of Columbia is charged 

with general enforcement of chapter 5 of 

title 36 of the United Stated Code, and 

must ‘‘take necessary precautions to 

protect the public, and ensure that the 

pavement of any street, sidewalk, 

avenue, or alley disturbed or damaged is 

restored to its prior condition.’’ 36 

U.S.C. 508. The District of Columbia’s 

enforcement powers under chapter 5, 

however, are limited to authority over 

the infrastructure necessary for the 

inaugural events and the public safety 

during the events. In addition, the 

District of Columbia’s rules to

Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 59779

implement this chapter ‘‘are effective 

only during the inaugural period,’’ 36 

U.S.C. 506, which begins five calendar 

days before the inauguration and ends 

four calendar days after the 

inauguration, 36 U.S.C. 501(2). 

Therefore, the scope of the District of 

Columbia’s authority with respect to the 

inauguration does not extend beyond 

four days after the inauguration and 

would not cover the 90 day period after 

the inauguration within which an 

inaugural committee must file its report 

with the Commission. 

The District of Columbia’s Inaugural 

Committee (the ‘‘DCIC’’), a committee 

made up of representatives from the 

District’s permit granting agencies, is 

charged with regulating the activities of 

the Presidential inauguration and the 

activities of the inaugural committee 

pertaining to public safety for the 

Presidential inauguration. The 

Commission has confirmed, through 

communications with the chairperson of 

the DCIC, that the DCIC is aware of the 

new requirements of these final rules, 

including the letter-filing requirement 

under new 11 CFR 104.21(b) that is a 

precondition to the inaugural committee 

receiving any necessary permits from 

the DCIC. Moreover, the chairperson of 

the DCIC has indicated that the DCIC 

considers the enforcement of provisions 

of 36 U.S.C. 510 not pertaining to public 

safety and inaugural committee events 

in the District of Columbia to be the 

Commission’s responsibility. 

Certification of No Effect Pursuant to 5 

U.S.C. 605(b) (Regulatory Flexibility 

Act) 

The attached rules will not have a 

significant economic impact on a 

substantial number of small entities. 

The basis of this certification is that 

these rules affect only inaugural 

committees appointed by the Presidentelect, of which there will be only one 

every four years. An inaugural 

committee does not appear to be a small 

entity within the meaning of 5 U.S.C. 

601(3)–(6). Even if an inaugural 

committee is deemed a small entity, the 

new reporting rules require the filing of 

only one letter and one report, with 

supplements thereto as necessary. There 

is no ongoing reporting requirement 

after all donations have been reported. 

Therefore, any increase in the cost of 

compliance would not impose a 

significant economic burden on a 

substantial number of small entities.

List of Subjects 

11 CFR Part 104 

Campaign funds, Political committees 

and parties, Reporting and 

recordkeeping requirements. 

11 CFR Part 110 

Campaign funds, Political committees 

and parties.

■ For the reasons set forth in the 

preamble, the Federal Election 

Commission amends Subchapter A of 

Chapter I of Title 11 of the Code of 

Federal Regulations as follows:

PART 104—REPORTS BY POLITICAL 

COMMITTEES AND OTHER PERSONS 

(2 U.S.C. 434)

■ 1. The title of Part 104 is revised to 

read as set forth above.

■ 2. The authority citation for part 104 is 

revised 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.

■ 3. A new § 104.21 is added to read as 

follows:

§ 104.21 Reporting by inaugural 

committees. 

(a) Definitions—(1) Inaugural 

committee. Inaugural committee means 

the committee appointed by the 

President-elect to be in charge of the 

Presidential inaugural ceremony and 

functions and activities connected with 

the inaugural ceremony. 

(2) Donation. For purposes of this 

section, donation has the same meaning 

as in 11 CFR 300.2(e). 

(b) Initial letter-filing by inaugural 

committees. (1) In order to be 

considered the inaugural committee 

under 36 U.S.C. Chapter 5, within 15 

days of appointment by the Presidentelect, the appointed committee must file 

a signed letter with the Commission 

containing the following: 

(i) The name and address of the 

inaugural committee; 

(ii) The name of the chairperson, or 

the name and title of another officer 

who will serve as the point of contact; 

and 

(iii) A statement agreeing to comply 

with paragraphs (c) and (d) of this 

section and with 11 CFR 110.20(j). 

(2) Upon receipt of the letter filed 

under this paragraph (b), the 

Commission will assign a FEC 

committee identification number to the 

inaugural committee. The inaugural 

committee must include this FEC 

committee identification number on all 

reports and supplements thereto 

required under paragraph (c) of this 

section, as well as on all 

communications with the Commission 

concerning the letter filed under this 

paragraph (b). 

(c) Reporting requirements for 

inaugural committees—(1) Who must 

report. The chairperson or other officer 

identified in the letter-filing required by 

paragraph (b) of this section must file a 

report and any supplements thereto as 

required by this paragraph (c). Such 

person must sign the report and any 

supplements thereto in accordance with 

11 CFR 104.14(a). The signature on the 

report and any supplements thereto 

certifies that the contents are true, 

correct, and complete, to the best of 

knowledge of the chairperson or other 

officer identified in the letter-filing 

required by paragraph (b) of this section. 

(2) When to file. A report, and any 

supplements thereto, must be timely 

filed in accordance with 11 CFR 100.19 

as follows: 

(i) Report. An inaugural committee 

must file a report with the Commission 

no later than the 90th day following the 

date on which the Presidential 

inaugural ceremony is held. 

(ii) Supplements to the report. (A) An 

inaugural committee must file a 

supplement to its report if it accepts a 

reportable donation, or makes a refund 

during the 90 days following the end of 

the covering period of its original report 

or its most recent supplement. 

(B) Any supplement must be filed no 

later than the 90th day following the 

filing date of an original report, or if a 

supplement has already been filed, the 

filing date of the most recent 

supplement. 

(3) Where to file. All letters, reports, 

and any supplements thereto, as 

required under this section, shall be 

filed with the Federal Election 

Commission, 999 E Street, NW., 

Washington, DC 20463. 

(4) How to file. An inaugural 

committee must file its letter, report, 

and any supplements thereto, in original 

form; however, an inaugural committee 

may choose to file its reports in an 

electronic format that meets the 

requirements of 11 CFR 104.18. 

(5) Form. An inaugural committee 

must file the report required by this 

paragraph on FEC Form 13. 

(6) Content of report. Each report, and 

any supplements thereto, filed with the 

Commission under this section must 

contain the following: 

(i) Covering period beginning and 

ending dates, as follows: 

(A) The covering period of a report 

means the period of time beginning on 

the date of the inaugural committee’s 

appointment by the President-elect and 

ending no earlier than 15 days before 

the day on which the inaugural

59780 Federal Register / Vol. 69, No. 193 / Wednesday, October 6, 2004 / Rules and Regulations 

committee files its report with the 

Commission. 

(B) The covering period of a 

supplement to the report means the 

period of time beginning on the day 

after the ending date of the covering 

period of the original report, or the most 

recent supplement thereto, and ending 

no earlier than 15 days before the day 

on which the inaugural committee files 

such supplement with the Commission. 

(ii) Cumulative totals from the date of 

the inaugural committee’s appointment 

by the President-elect for all: 

(A) Donations reported under 

paragraph (c)(6)(iii) of this section; 

(B) Refunds reported under paragraph 

(c)(6)(iv) of this section; and 

(C) Net reported donations; 

(iii) Itemization of previously 

unreported donations of $200 or more, 

and donations that aggregate $200 or 

more, including: 

(A) The full name of each person who 

made such a donation, including first 

name, middle name or initial, if 

available, and last name, in the case of 

an individual; 

(B) The address of each such person; 

(C) The amount of each such 

donation; and 

(D) The date of receipt of each such 

donation; and 

(iv) Itemization of previously 

unreported refunds of previously, or 

contemporaneously, reported donations, 

including: 

(A) The full name of each person to 

whom such a refund was made, 

including first name, middle name or 

initial, if available, and last name, in the 

case of an individual; 

(B) The address of each such person; 

(C) The amount of each such refund; 

and 

(D) The date of each such refund. 

(d) Recordkeeping. All inaugural 

committees must maintain records in 

accordance with 11 CFR 104.14.

PART 110—CONTRIBUTION AND 

EXPENDITURE LIMITATIONS AND 

PROHIBITIONS

■ 4. The authority citation for Part 110 is 

revised to read as follows:

Authority: 2 U.S.C. 431(8), 431(9), 

432(c)(2), 437d, 438(a)(8), 441a, 441b, 441d, 

441e, 441f, 441g, 441h, and 441k, and 36 

U.S.C. 510.

■ 5. The subject heading of § 110.20 is 

revised and paragraph (j) is added to read 

as follows:

§ 110.20 Prohibition on contributions, 

donations, expenditures, independent 

expenditures, and disbursements by 

foreign nationals (2 U.S.C. 441e, 36 U.S.C. 

510).

* * * * *

(j) Donations by foreign nationals to 

inaugural committees. A foreign 

national shall not, directly or indirectly, 

make a donation to an inaugural 

committee, as defined in 11 CFR 

104.21(a)(1). No person shall knowingly 

accept from a foreign national any 

donation to an inaugural committee.

Dated: September 30, 2004. 

Bradley A. Smith, 

Chairman, Federal Election Commission.

[FR Doc. 04–22393 Filed 10–5–04; 8:45 a.m.] 

BILLING CODE 6715–01–P

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 335 

RIN 3064–AC79 

Securities of Nonmember Insured 

Banks

AGENCY: Federal Deposit Insurance 

Corporation (FDIC).

ACTION: Final rule.

SUMMARY: The FDIC is adopting a final 

rule, unchanged from an interim final 

rule published on April 12, 2004 in the 

Federal Register (see 69 FR 19085), 

which confirms amendments to its 

securities disclosure regulations 

applicable to banks with securities 

registered under section 12 of the 

Securities Exchange Act of 1934 

(Exchange Act). These amendments 

implemented the requirements of the 

Exchange Act, as amended by the 

Sarbanes-Oxley Act of 2002, which 

mandates electronic filing of reports 

related to beneficial ownership of 

securities by the directors, executive 

officers, and principal shareholders of 

public companies. Prior to issuance of 

the interim final rule, the FDIC’s 

securities disclosure regulations 

prohibited electronically transmitted 

filings or submissions of materials in 

electronic format to the FDIC. The 

amended rules provide an exception to 

this prohibition, requiring electronically 

transmitted filings of beneficial 

ownership reports by bank directors, 

officers, and principal shareholders to 

disclose securities transactions and 

ownership. Related technical or 

procedural provisions were also 

amended as appropriate.

DATES: These amendments are effective 

on October 6, 2004.

FOR FURTHER INFORMATION CONTACT:

Dennis Chapman, Senior Staff 

Accountant, Division of Supervision 

and Consumer Protection, (202) 898–

8922; Mary Frank, Senior Financial 

Analyst, Division of Supervision and 

Consumer Protection, (202) 898–8903; 

or Carl J. Gold, Counsel, Legal Division, 

(202) 898–8702, Federal Deposit 

Insurance Corporation, 550 17th Street, 

NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 

I. Background and Authority for This 

Final Rule 

a. Appropriate Federal Banking Agency 

Authority Under the Exchange Act 

Section 12(i) of the Securities 

Exchange Act of 1934 as amended (15 

U.S.C. 78l(i)) authorizes the Federal 

banking agencies (the FDIC, the Board of 

Governors of the Federal Reserve 

System (FRB), the Office of the 

Comptroller of the Currency (OCC), and 

the Office of Thrift Supervision (OTS)) 

to enforce sections 10A(m) (standards 

relating to audit committees), 12 

(securities registration), 13 (periodic 

reporting), 14(a) (proxies and proxy 

solicitation), 14(c) (information 

statements), 14(d) (tender offers), 14(f) 

(arrangements for changes in directors), 

and 16 (beneficial ownership and 

reporting) of the Exchange Act, and 

sections 302 (corporate responsibility 

for financial reports), 303 (improper 

influence on conduct of audits), 304 

(forfeiture of certain bonuses and 

profits), 306 (insider trades during 

pension blackout periods), 401(b) 

(disclosure of pro forma financial 

information), 404 (management 

assessment of internal controls), 406 

(code of ethics for senior financial 

officers), and 407 (disclosure of audit 

committee financial expert) of the 

Sarbanes-Oxley Act of 2002, in regard to 

the depository institutions for which 

each Federal banking agency is, 

respectively, the primary federal 

supervisor. The Exchange Act seeks to 

protect investors by requiring accurate, 

reliable, and timely corporate securities 

disclosures. 

The FDIC is authorized, in 

administering the above-listed statutory 

provisions, to promulgate regulations 

applicable to the securities of insured 

banks (including foreign banks having 

an insured branch) which are neither 

members of the Federal Reserve System 

nor District banks (collectively referred 

to as ‘‘state nonmember banks’’). These 

regulations must be substantially similar 

to the regulations of the Securities and 

Exchange Commission (SEC) under the 

listed sections of the Exchange Act and 

the Sarbanes-Oxley Act, unless the FDIC 

publishes its reasons for deviating from 

the SEC’s rules.

b. Section 16 of the Exchange Act 

Section 16 of the Exchange Act 

applies to every person who is the