Commission Seeks Comment on Member Rulemaking
COMMISSION SEEKS COMMENT ON ‘MEMBER’ RULEMAKING
WASHINGTON -- The Federal Election Commission is seeking public comment on a proposed rulemaking that would expand the definition of "member" in membership associations.
Although the Federal Election Campaign Act (FECA) of 1971 prohibits direct corporate contributions to federal campaigns, it permits corporations, including incorporated membership associations, to solicit contributions from their restricted class to the association’s separate segregated fund (commonly known as PACs), and to include express electoral advocacy in communications with the restricted class. The restricted class consists of the association’s members, its executive and administrative personnel, and their families.
The United States Court of Appeals for the District of Columbia, in a 1995 case entitled Chamber of Commerce of the United States v. Federal Election Commission, ruled the FECA regulations were unduly restrictive in defining who is a "member" of a membership association. The FEC in July of this year issued an Advance Notice of Proposed Rulemaking and called for public comment on how best to revise the present rules to comport with the Chamber decision, and received 14 comments in response.
The proposed rules published today in the Federal Register would expand the definition of "members" in membership associations. Public comment is being sought on three alternatives for determining membership, those alternatives addressing the amount of annual dues and the organizational attachments, such as voting rights of members, governance rights, and the right to influence policy decisions.
Comments should be addressed to Susan E. Propper, Assistant General Counsel, Federal Election Commission, 999 E. Street NW, Washington, DC 20463. Faxed comments should be sent to 202-219-3923, with printed copy follow-up, and electronic mail comments should be sent to members@fec.gov.
Commenters using electronic mail should include their full name and postal service address within the text of their comments. Comments must be received no later than January 21, 1998.
If the Commission receives sufficient requests to testify, it will hold a hearing in early 1998, precise date and time to be announced in the Federal Register. Persons wishing to testify should so indicate in their comments.
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