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[Federal Register Volume 89, Number 228 (Tuesday, November 26, 2024)]
[Proposed Rules]
[Pages 93224-93225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27583]

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FEDERAL ELECTION COMMISSION

11 CFR Part 112

[Notice 2024-25]

Contributions Through Untraceable Electronic Payment Methods

AGENCY: Federal Election Commission.

ACTION: Notification of availability of petition for rulemaking.

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SUMMARY: The Commission announces its receipt of a Petition for 
Rulemaking submitted by Ken Paxton, Attorney General of Texas. The 
Petition asks the Commission to amend its regulations concerning the 
use of credit cards to make contributions, to address the potential use 
of prepaid cards to circumvent contribution amount limitations and 
source prohibitions.

DATES: Comments must be submitted on or before January 27, 2025.

ADDRESSES: All comments must be in writing. Commenters may submit 
comments electronically via the Commission's website at https://sers.fec.gov/fosers/, reference REG 2024-08.
    Each commenter must provide, at a minimum, his or her first name, 
last name, city and state. All properly submitted comments, including

[[Page 93225]]

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: Robert M. Knop, Assistant General 
Counsel, or Joanna S. Waldstreicher, Attorney, 1050 First Street NE, 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: On October 22, 2024, the Commission received 
a Petition for Rulemaking (``Petition'') from Ken Paxton, Attorney 
General of Texas. The Petition asks the Commission to adopt two 
amendments to its regulations concerning the use of credit cards to 
make contributions, to address the potential use of prepaid cards to 
circumvent contribution amount limitations and source prohibitions.
    The Federal Election Campaign Act (the ``Act'') limits the total 
amount a contributor may contribute to any given political 
committee.\1\ The Act and Commission regulations also prohibit certain 
persons from making contributions at all.\2\ The Act and Commission 
regulations further prohibit any person from making a contribution in 
the name of another person.\3\ In addition, the Act and Commission 
regulations require political committees to disclose identifying 
information from each contributor, including name, address, and--in 
some cases--the contributor's occupation and employer.\4\
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    \1\ 52 U.S.C. 30116(a); see also 11 CFR 110.1, 110.2.
    \2\ 52 U.S.C. 30118, 30119, 30121; see also 11 CFR 110.4, 
110.9(a), 110.14(c)(2), 114.2, 115.2, 300.10.
    \3\ 52 U.S.C. 30122; see also 11 CFR 110.4(b).
    \4\ 52 U.S.C. 30104; 11 CFR 104.3, 104.8.
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    The Petition asserts that ``there has been substantial public 
reporting regarding potentially fraudulent transactions on political 
committee online platforms. Certain platforms appear to facilitate 
straw donor transactions, where a contributor disguises his identity by 
attributing his contribution to another, unaware person.'' \5\ The 
Petition further states that ``prepaid cards are a favorite tool of 
fraudsters,'' \6\ and that ``specific security measures can mitigate 
this problem,'' such as comparing the identifying information supplied 
by contributors to the name, address, and other billing information on 
file with the issuer of the credit card used to make the 
contribution.\7\
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    \5\ Petition at 1.
    \6\ Id.
    \7\ Petition at 3.
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    Accordingly, the Petition states that ``new regulations governing 
electronic payment acceptance and related problems are critical to 
ensuring the integrity of campaign finance laws.'' \8\ The Petition 
asks the Commission to adopt two amendments to 11 CFR 104.14:
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    \8\ Petition at 1.
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     Amend 104.14(b)(5) to provide that records for 
contributions made by credit, debit, prepaid, or gift card must include 
documentation confirming that a cross-check occurred between the 
contributor's self-reported identifying information with the card 
issuing institution's own information on the name and billing address 
of the cardholder.
     Amend 104.14(e) to provide that contributions cannot be 
accepted from prepaid or gift cards unless the information from those 
prepaid or gift cards can be cross-checked with the card issuing 
institution to confirm the name and billing address required under 
paragraph (b)(5) of this rule.\9\
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    \9\ Petition at 7.
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    The Commission seeks comment on the Petition. The public may 
inspect the Petition on the Commission's website at http://www.fec.gov/fosers/ (reference REG 2024-08).
    The Commission will not consider the Petition's merits until after 
the comment period closes. If the Commission decides that the Petition 
has merit, it may begin a rulemaking proceeding. The Commission will 
announce any action that it takes in the Federal Register.

    Dated: November 19, 2024.

On behalf of the Commission,
Sean J. Cooksey,
Chairman, Federal Election Commission.
[FR Doc. 2024-27583 Filed 11-25-24; 8:45 am]
BILLING CODE 6715-01-P
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