[Federal Register Volume 66, Number 248 (Thursday, December 27, 2001)]
[Proposed Rules]
[Page 66813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31616]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / 
Proposed Rules

[[Page 66813]]



FEDERAL ELECTION COMMISSION

11 CFR Part 106

[Notice 2001-20]


Notice of Disposition Regarding Party Committee Transfers of 
NonFederal Funds for Payment of Allocable Expenses

AGENCY: Federal Election Commission.

ACTION: Notice of disposition.

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SUMMARY: The Commission will not issue a statement of enforcement 
policy regarding party committee transfers of nonfederal funds for 
payment of allocable expenses. On November 7, 2001, the Commission 
requested comments on a Draft Statement of Policy. The Draft Statement 
indicated that in light of the suspension of fundraising activities by 
some party committees after the terrorist attacks of September 11, 
2001, the Commission would consider exercising its prosecutorial 
discretion by not pursuing prima facie violations of the 60 day limit 
for party committee transfers of nonfederal funds to pay for the 
nonfederal share of allocable expenses. After receiving and considering 
public comments, the Commission declined to adopt a final Statement of 
Policy by a 3-3 vote.

DATES: November 29, 2001.

FOR FURTHER INFORMATION CONTACT: Rosemary C. Smith, Assistant General 
Counsel, or Richard Ewell, Staff Attorney, 999 E Street, NW, 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530.

SUPPLEMENTARY INFORMATION: The Commission's regulations at 11 CFR 106.1 
and 106.5 allow party committees to defray the costs of activities that 
relate to both federal and nonfederal elections by allocating the costs 
between their federal and nonfederal accounts, so long as they pay an 
amount equal to or greater than the federal portion of these expenses 
with funds that are permissible under the Federal Election Campaign 
Act, 2 U.S.C. Sec. 431 et seq. [``FECA'' or ``the Act'']. The 
Commission's regulations provide that party committees, after paying an 
allocable expense, have a 60 day ``window'' to transfer funds from a 
nonfederal account to cover the nonfederal portion of the allocable 
expense. See 11 CFR 106.5(g)(1)(i) and (ii); 11 CFR 106.5(g)(2)(ii)(B).
    In many instances, party committees plan and execute allocable 
activities based, in part, on the expectation that they will 
subsequently receive nonfederal funds that can be transferred to their 
federal or allocation accounts before the expiration of the 60-day 
transfer window in section 106.5(g)(2)(ii)(B). In light of the fact 
that some party committees temporarily suspended their fundraising 
activities in the immediate aftermath of the September 11, 2001 
terrorist attacks, these party committees may not have sufficient funds 
in their nonfederal accounts to make transfers to their federal 
accounts or allocation accounts within the required 60 day transfer 
window.
    Consequently, the Commission sought and received public comment on 
a draft proposal to exercise its prosecutorial discretion by not 
pursuing prima facie violations of the 60 day time limit for a 
specified period of time. See 66 FR 56247 (Nov. 7, 2001). On November 
29, 2001, the Commission declined to adopt a final statement of policy 
by a vote of 3-3. See Agenda Document Number 01-61. Because the motion 
did not receive an affirmative vote of four members of the Commission, 
the Commission is announcing that no further action on the proposed 
statement of policy will be taken at this time. See 2 U.S.C. 437c(c).

    Dated: December 18, 2001.
David M. Mason,
Vice Chairman, Federal Election Commission.
[FR Doc. 01-31616 Filed 12-26-01; 8:45 am]
BILLING CODE 6715-01-P