[Federal Register Volume 79, Number 201 (Friday, October 17, 2014)]
[Rules and Regulations]
[Pages 62335-62336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24661]


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FEDERAL ELECTION COMMISSION

11 CFR Part 110

[Notice 2014-11]


Aggregate Biennial Contribution Limits

AGENCY: Federal Election Commission.

ACTION: Interim final rule.

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SUMMARY: The Commission is removing regulatory limits on the aggregate 
amounts that an individual may contribute to federal candidates and 
political committees in each two-year election cycle. The Commission is 
taking this action in light of the Supreme Court's recent decision in 
McCutcheon v. FEC, which held that the aggregate contribution limits 
are unconstitutional. The Commission is accepting comments on these 
revisions to its regulations.

DATES: Effective October 17, 2014. Comments must be received on or 
before November 17, 2014.

ADDRESSES: All comments must be in writing. Comments may be submitted 
electronically via the Commission's Web site at sers.fec.gov, reference 
REG 2014-01. Commenters are encouraged to submit comments 
electronically to ensure timely receipt and consideration. 
Alternatively, comments may be submitted in paper form. Paper comments 
must be sent to the Federal Election Commission, Attn.: Amy L. 
Rothstein, Assistant General Counsel, 999 E Street NW., Washington, DC 
20463. All comments must include the full name and postal service 
address of a commenter, and of each commenter if filed jointly, or they 
will not be considered. The Commission will post comments on its Web 
site at the conclusion of the comment period.

FOR FURTHER INFORMATION CONTACT: Ms. Amy L. Rothstein, Assistant 
General Counsel, or Mr. Theodore M. Lutz, Attorney, 999 E Street NW., 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION:

Background

    The Federal Election Campaign Act, 52 U.S.C. 30101-46 (formerly 2 
U.S.C. 431-57) (``FECA''), imposes limits on the aggregate amounts that 
an individual may contribute to federal candidates, political parties, 
and other political committees during a two-year election cycle. 52 
U.S.C. 30116(a)(3) (formerly 2 U.S.C. 441a(a)(3)). The Commission has 
implemented FECA's aggregate limits in its regulations at 11 CFR 110.5.
    On April 2, 2014, the United States Supreme Court held that the 
aggregate contribution limits are unconstitutional. McCutcheon v. FEC, 
572 U.S. _, 134 S. Ct. 1434 (2014) (plurality op.). To conform its 
regulations to the McCutcheon decision, the Commission is deleting 11 
CFR 110.5 and is making technical and conforming changes to 11 CFR 
110.1(c), 110.14(d) and (g), 110.17(b), and 110.19. In an Advance 
Notice of Proposed Rulemaking published in today's Federal Register, 
the Commission is separately seeking comment on whether to begin a 
rulemaking to revise other regulations in light of certain language 
from the McCutcheon decision.
    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 set forth herein are necessary to conform the Commission's 
regulations to the Supreme Court's holding that the statutory aggregate 
limits are unconstitutional. See McCutcheon, 134 S. Ct. at 1442. 
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). A pre-publication notice and comment period would 
also be contrary to the public interest because the 2014 election 
campaigns for federal office are ongoing, and so the delay that would 
result from such a period might cause confusion among the public as to 
the enforceability of the regulations addressed below.
    For the same reasons, these revisions fall within the ``good 
cause'' exception to the APA's delayed effective date provision and the 
requirements of the Congressional Review Act. 5 U.S.C. 553(d)(3), 
808(2). 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). Nor is the 
Commission required to submit these revisions for congressional review 
under FECA. See 52 U.S.C. 30111(d)(1), (4) (formerly 2 U.S.C. 
438(d)(1), (4)) (providing for congressional review when Commission 
``prescribe[s]'' a ``rule of law''). Accordingly, these revisions are 
effective upon publication in the Federal Register.

Explanation and Justification

    FECA imposes two types of limits on the amount that individuals may 
contribute in connection with federal elections. The ``base limits'' 
restrict how much an individual may contribute to a particular 
candidate or political committee per election or calendar year. See 52 
U.S.C. 30116(a)(1) (formerly 2 U.S.C. 441a(a)(1)). The ``aggregate 
limits'' restrict the amounts that an individual may contribute to all 
candidate committees, political party committees, and other political 
committees in each two-year election cycle. See 52 U.S.C. 30116(a)(3) 
(formerly 2 U.S.C. 441a(a)(3)). Under the aggregate limits, as indexed 
for inflation in the 2013-14 election cycle, an individual could 
contribute up to

[[Page 62336]]

$48,600 to candidates and their authorized committees, and up to 
$74,600 to other political committees, of which no more than $48,600 
could be contributed to political committees other than national party 
committees. See Price Index Adjustments for Contribution and 
Expenditure Limitations and Lobbyist Bundling Disclosure Threshold, 78 
FR 8530, 8532 (Feb. 6, 2013).
    On April 2, 2014, the Supreme Court held that the aggregate 
contribution limits at 52 U.S.C. 30116(a)(3) (formerly 2 U.S.C. 
441a(a)(3)) are unconstitutional. See McCutcheon, 134 S. Ct. at 1442, 
1450-59. Accordingly, the Commission is removing the regulation at 11 
CFR 110.5 that implements that statutory provision and is making 
technical and conforming amendments at 11 CFR 110.1(c)(3), 
110.14(d)(1), 110.14(g)(2), 110.17(b), and 110.19, as explained further 
below. The Court's decision did not affect the base limits. See 
McCutcheon, 134 S. Ct. at 1442.

11 CFR 110.1

    Section 110.1(c) implements FECA's base and aggregate limits on 
contributions to political party committees. Current 11 CFR 110.1(c)(3) 
states that each national political party committee may receive up to 
the base limit from an individual contributor, but ``the limits of 11 
CFR 110.5 shall . . . apply to contributions made by an individual'' to 
such committees. The Commission is deleting this reference to the 
aggregate limits.

11 CFR 110.5

    Section 110.5 directly implements FECA's aggregate limits, 52 
U.S.C. 30116(a)(3) (formerly 2 U.S.C. 441a(a)(3)). The Commission is 
deleting 11 CFR 110.5 in its entirety and reserving that section.

11 CFR 110.14

    Section 110.14(d)(1) provides, among other things, that 
``contributions made to a delegate for the purpose of furthering his or 
her selection . . . count against the limitation . . . under 11 CFR 
110.5.'' The Commission is deleting this reference to the aggregate 
limits.
    Similarly, section 110.14(g)(2) provides that an individual's 
``[c]ontributions to a delegate committee count against the limitation 
. . . under 11 CFR 110.5.'' The Commission is deleting paragraph (g)(2) 
and redesignating current paragraph (g)(3) as new paragraph (g)(2).

11 CFR 110.17

    Section 110.17(b) implements FECA's price index increases for 
certain contribution limits, including the aggregate limits. The 
Commission is deleting both the reference to the ``bi-annual aggregate 
contribution limitation'' in the title of section 110.17(b) and the 
citation in the text to section 110.5. Additionally, at 11 CFR 
110.17(b)(1), the Commission is deleting the citation to section 
110.5(b)(3).

11 CFR 110.19

    Section 110.19 provides that, so long as certain conditions are 
satisfied, minors may make contributions ``that in the aggregate do not 
exceed the limitations on contributions of 11 CFR 110.1 and 110.5.'' 
The Commission is deleting the citation to 110.5.

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

0
1. Revise the authority citation for part 110 to read as follows:

    Authority: 52 U.S.C. 30101(8), 30101(9), 30102(c)(2), 
30104(i)(3), 30111(a)(8), 30116, 30118, 30120, 30121, 30122, 30123, 
30124, and 36 U.S.C. 510.


0
2. Revise the section heading and paragraph (c)(3) of Sec.  110.1 to 
read as follows:


Sec.  110.1  Contributions by persons other than multicandidate 
political committees (52 U.S.C. 30116(a)(1)).

* * * * *
    (c) * * *
    (3) Each recipient committee referred to in 11 CFR 110.1(c)(2) may 
receive up to the $25,000 limitation from a contributor.
* * * * *


Sec.  110.5  [Removed and Reserved]

0
3. Remove and reserve Sec.  110.5.

0
4. Revise paragraphs (d)(1) and (g) of Sec.  110.14 to read as follows:


Sec.  110.14  Contributions to and expenditures by delegates and 
delegate committees.

* * * * *
    (d) * * *
    (1) The limitations on contributions to candidates and political 
committees under 11 CFR 110.1 and 110.2 do not apply to contributions 
made to a delegate for the purpose of furthering his or her selection.
* * * * *
    (g) Contributions made to and by a delegate committee. (1) The 
limitations on contributions to political committees under 11 CFR 110.1 
and 110.2 apply to contributions made to and by a delegate committee.
    (2) A delegate committee shall report contributions it makes and 
receives pursuant to 11 CFR part 104.
* * * * *>

0
5. Revise paragraph (b) introductory text and paragraph (b)(1) of Sec.  
110.17 to read as follows:


Sec.  110.17  Price index increase.

* * * * *
    (b) Price index increases for contributions by persons and 
political party committees to Senatorial candidates. The limitations on 
contributions established by 11 CFR 110.1(b) and (c) and 110.2(e) shall 
be increased only in odd-numbered years by the percent difference 
between the price index, as certified to the Commission by the 
Secretary of Labor, for the 12 months preceding the beginning of the 
calendar year and the price index for the base period.
    (1) The increased contribution limitations shall be in effect as 
provided in 11 CFR 110.1(b)(1)(ii), 110.1(c)(1)(ii), and 110.2(e)(2).
* * * * *


Sec.  110.19  [Amended]

0
6. Amend Sec.  110.19 introductory text by removing ``and 110.5''.

    Dated: October 9, 2014.

    On behalf of the Commission.
Lee E. Goodman,
Chairman,
Federal Election Commission.
[FR Doc. 2014-24661 Filed 10-16-14; 8:45 am]
BILLING CODE 6715-01-P