[Federal Register Volume 69, Number 193 (Wednesday, October 6, 2004)]
[Rules and Regulations]
[Pages 59775-59780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22393]


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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.

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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.
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    \1\ The 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.
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    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

[[Page 59776]]

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 letter-filing 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.
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    \2\ The 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.
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    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 Letter-Filing 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

[[Page 59777]]

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\
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    \3\ Although 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).
    \4\ This 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.
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    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

[[Page 59778]]

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

[[Page 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 
President-elect, 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.

0
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)

0
1. The title of Part 104 is revised to read as set forth above.
0
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.

0
3. A new Sec.  104.21 is added to read as follows:


Sec.  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 President-elect, 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

[[Page 59780]]

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

0
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.

0
5. The subject heading of Sec.  110.20 is revised and paragraph (j) is 
added to read as follows:


Sec.  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