Unknown. Final rules and transmittal of regulations to Congress

4,830 words·~22 min read·/register/2005/03/16/05-5159

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2005-03-16.xml --- 70 50 Wednesday, March 16, 2005 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Farm Service Agency See Food and Nutrition Service See Forest Service See Rural Business-Cooperative Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 12836-12837 05-5180 Alcohol Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 12900 05-5116 Animal Animal and Plant Health Inspection Service PROPOSED RULES Viruses, serums, toxins, etc.:

Bovine virus diarrhea and bovine rhinotracheitis vaccines; standard requirements; withdrawn, 12814 05-5156 Escherichia coli bacterins; standard requirement; withdrawn, 12813-12814 05-5155 Antitrust Antitrust Division NOTICES National cooperative research notifications: Interchangeable Virtual Instruments Foundation, Inc., 12500 Network Centric Operations Industry Consortium Inc., 12500 PXI Systems Alliance, Inc., 12500 Water Heater Industry Joint Research and Development Consortium, 12501 [ **Editorial Note** :

These documents were indavertently placed under the Justice Department in the **Federal Register** table of contents on March 14, 2005.] Army Army Department See Engineers Corps Centers Centers for Disease Control and Prevention NOTICES Agency information collection activities; proposals, submissions, and approvals, 12888-12889 05-5143 Coast Guard Coast Guard RULES Drawbridge operations: Maine, 12805-12807 05-5188 NOTICES Organization, functions, and authority delegations: Group Mobile and Marine Safety Office Mobile; consolidation into one command, Sector Miami, 12894-12895 05-5189 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Defense Defense Department See Engineers Corps See Navy Department RULES Civilian health and medical program of uniformed services (CHAMPUS):

TRICARE program— Reserve Select, Transitional Assistance Management Program; and early eligibility for certain reserve component members; requirements and procedures, 12798-12805 05-5219 NOTICES Meetings: Medicare-Eligible Retiree Health Care Board of Actuaries, 12854 05-5220 Education Education Department NOTICES Privacy Act: Computer matching program, 12856-12857 05-5233 Special education and rehabilitative services: Individuals with Disabilities Education Act (IDEA)— Correspondence; quarterly list, 12857-12858 05-5157 Employment Employment and Training Administration NOTICES Adjustment assistance:

Arthur G. Russell Co., Inc., 12901 E5-1139 AVX Corp., 12901 E5-1135 G & H Machine Co., Inc., 12901 E5-1144 Marsh Advantage America, 12902 E5-1140 Metso Minerals Industries, Inc., 12902 E5-1137 Milliken & Co., 12902 E5-1154 Murray Engineering, Inc., 12902-12905 E5-1134 Parker Cone Co., 12905 E5-1138 Shirley's Sewvac, 12905 E5-1142 Solo Cup Co., 12905 E5-1158 Energy Energy Department See Energy Information Administration See Federal Energy Regulatory Commission Energy Energy Information Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 12858-12860 05-5184 Engineers Engineers Corps NOTICES Environmental statements; notice of intent:

St. Tammany Parish, LA; Timber Branch Subdivision Phase II, 12854-12855 05-5123 EPA Environmental Protection Agency NOTICES Air pollution control: Citizens suits; proposed settlements— American Lung Association of Metropolitan Chicago et al., 12869-12870 05-5132 Meetings: Scientific Counselors Board, 12870-12871 05-5131 Pesticide, food, and feed additive petitions: FMC Corp., 12874-12879 05-5214 Syngenta Seeds, Inc.; correction, 12879-12880 05-5212 Pesticide programs: Risk assessments— Napropamide, 12871-12874 05-5211 Pesticide registration, cancellation, etc.:

Imazalil; correction, 12874 05-5208 Pesticides; experimental use permits, etc.: Syngenta Seeds, 12880-12881 05-4958 Reports and guidance documents; availability, etc.: Pesticides— Adult mosquito control products; labeling statements, 12881-12882 05-4878 Superfund; response and remedial actions, proposed settlements, etc.: Riverhills Battery Site, FL, 12882-12883 05-5130 Farm Farm Service Agency NOTICES Agency information collection activities; proposals, submissions, and approvals, 12837 05-5154 FAA Federal Aviation Administration RULES Airworthiness directives:

Boeing, 12790-12791 05-5015 McDonnell Douglas, 12791-12793 05-5016 PROPOSED RULES Airworthiness directives: AeroSpace Technologies of Australia Pty Ltd., 12819-12823 05-5153 Airbus, 12816-12819 05-5138 Boeing, 12815-12816 05-5137 FCC Federal Communications Commission RULES Radio stations; table of assignments: Various States, 12807-12808 05-5170 PROPOSED RULES Common carrier services: Prepaid calling card services, 12828-12832 05-5167 Radio stations; table of assignments: Arkansas, 12834-12835 05-5171 California, 12832-12833 05-5173 Florida, 12832 05-5169 Texas, 12833 05-5174 Various States, 12833-12834 05-5175 NOTICES Debarment notices; schools and libraries universal service support mechanism:

Weaver, John H., 12883-12884 05-5168 Declaratory ruling petitions: California Coalition of Agencies Serving the Deaf and Hard of Hearing, 12884-12885 05-5172 Federal Election Federal Election Commission RULES Bipartisan Campaign Reform Act; implementation Non-Federal funds donations to tax-exempt and political organizations; national, State, district, and local political party committees prohibition, 12787-12790 05-5159 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings, 12863-12865 E5-1136 Hydroelectric applications, 12865 E5-1151 Meetings:

Bonneville Power Administration and the Western Electricity Coordinating Council; technical workshop, 12865-12866 E5-1145 New York Independent System Operator, Inc.; technical conference, 12866-12867 E5-1149 Practice and procedure: Critical energy infrastructure information, 12867-12868 05-4947 Preliminary permits surrender: Gentry Resources Corp., 12868-12869 E5-1150 *Applications, hearings, determinations, etc.:* American Electric Power Service Co., et al., 12860-12861 E5-1148 El Paso Natural Gas Co., 12861 E5-1159 Kinder Morgan North Texas Pipeline, L.P., 12861-12862 E5-1147 Port Arthur LNG, L.P., 12862 E5-1146 Southern California Edison Co., 12862-12863 E5-1152 FMC Federal Maritime Commission NOTICES Agreements filed, etc., 12885 05-5182 Ocean transportation intermediary licenses:

Freightcan Global Inc., et al., 12885-12886 05-5181 Trans Atlantic Shipping, Inc., et al.; correction, 12886 05-5176 FTC Federal Trade Commission PROPOSED RULES Federal Deposit Insurance Corporation Improvement Act; implementation: Depository institutions lacking Federal deposit insurance; disclosure requirements, 12823-12828 05-5218 NOTICES Prohibited trade practices: CartManager International, 12886-12888 05-5217 Fish Fish and Wildlife Service NOTICES Comprehensive conservation plans; availability, etc.:

Cabeza Prieta National Wildlife Refuge, AZ, 12895-12896 05-5145 Food Food and Nutrition Service NOTICES Child nutrition programs: Women, infants, and children; special supplemental nutrition program— Income eligibility guidelines, 12837-12840 05-5114 Forest Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 12840-12841 05-5213 Appealable decisions; legal notice: Pacific Southwest Region, 12841-12843 05-5134 Environmental statements; notice of intent:

Nez Perce National Forest, ID, 12843-12844 05-5146 Meetings: Resource Advisory Committees— Beaverhead-Deerlodge National Forest Tri-County, 12844 05-5144 Wrangell-Petersburg, 12844 05-5135 Health Health and Human Services Department See Centers for Disease Control and Prevention See National Institutes of Health See Substance Abuse and Mental Health Services Administration Homeland Homeland Security Department See Coast Guard Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service IRS Internal Revenue Service RULES Income taxes:

Charitable remainder trusts; ordering rule application, 12793-12798 05-5110 NOTICES Agency information collection activities; proposals, submissions, and approvals, 12952-12958 05-5109 05-5231 05-5232 Committees; establishment, renewal, termination, etc.: Taxpayer Advocacy Panels; correction, 12958 05-5209 Meetings: Art Advisory Panel, 12958 05-5113 Taxpayer Advocacy Panels, 05-5111 12958-12959 05-5225 International International Trade Administration NOTICES Antidumping: Stainless steel sheet and strip coils from— France, 12850-12853 E5-1160 Justice Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Antitrust Division NOTICES Pollution control; consent judgments:

Domenick Lombardi Realty Inc., 12898 05-5196 Illinois Power Co. et al., 12898-12899 05-5198 Shell Oil Co. et al., 12899 05-5197 Velsicol Chemical Corp., 12899-12900 05-5195 Labor Labor Department See Employment and Training Administration See Mine Safety and Health Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 12900-12901 05-5148 Consumer price index, all items for urban consumers; U.S. city average, 12901 05-5147 Land Land Management Bureau NOTICES Meetings:

Resource Advisory Councils— John Day/Snake, 12896 05-5136 Realty actions; sales, leases, etc.: Oregon; correction, 12896-12897 05-5187 Maritime Maritime Administration NOTICES Voluntary Intermodal Sealift Agreement: Extension, 12938-12948 05-5186 Mine Mine Safety and Health Administration NOTICES Safety standard petitions: Snyder Coal Co. et al., 12905-12906 05-5185 NIH National Institutes of Health NOTICES Agency information collection activities; proposals, submissions, and approvals, 12889 05-5200 Meetings:

National Cancer Institute, 12889-12890 05-5163 National Heart, Lung, and Blood Institute, 12890 05-5162 National Institute of Child Health and Human Development, 12890-12891 05-5201 05-5204 National Institute of Mental Health, 12891 05-5202 National Institute of Neurological Disorders and Stroke, 12890 05-5160 National Library of Medicine, 12891-12892 05-5161 Scientific Review Center, 12892-12894 05-5166 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management:

Alaska; fisheries of Exclusive Economic Zone— Pacific cod, 12808-12811 05-5105 05-5222 Pollock, 12810 05-5107 Northeastern United States fisheries— Tilefish, 12808 05-5223 NOTICES Meetings: Science Advisory Board, 12853 05-5118 Reports and guidance documents; availability, etc.: Beluga whales; Cook Inlet, AK; conservation plan, 12853-12854 05-5224 National Park National Park Service NOTICES Meetings: National Park System Advisory Board, 12897-12898 05-5115 Navy Navy Department NOTICES Inventions, Government-owned; availability for licensing, 12855 05-5152 Patent licenses; non-exclusive, exclusive, or partially exclusive:

Autoliv, Inc., 12855-12856 05-5150 Baltimore Shipping Technologies, L.L.C., 12856 05-5149 Nuclear Nuclear Regulatory Commission NOTICES Enforcement actions: Enforcement policy and procedure statement; Web site and Agencywide Documents Access Management System availability, 12908-12909 05-5119 *Applications, hearings, determinations, etc.:* Calvert Cliffs Nuclear Power Plant, Inc., 12906-12907 05-5121 Duke Energy Corp., 12907-12908 05-5122 Personnel Personnel Management Office PROPOSED RULES Excepted service:

Student Career Experience Program, 12812-12813 05-5179 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 12948-12952 05-5194 Rural Rural Business-Cooperative Service NOTICES Grants and cooperative agreements; availability, etc.: Rural Business Enterprise Program, 12844-12847 05-5126 Rural Business Opportunity Program, 12847-12849 05-5125 Rural Economic Development Loan and Grant Program; maximum dollar amount on awards, 12849-12850 05-5124 SEC Securities and Exchange Commission NOTICES Investment Company Act of 1940:

Brazilian Equity Fund, Inc., et al., 12909-12912 E5-1133 Meetings; Sunshine Act, 12912 05-5267 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 12912-12915 E5-1130 Chicago Board Options Exchange, Inc., 12916-12919 E5-1141 E5-1153 Fixed Income Clearing Corp., 12919-12921 E5-1155 E5-1156 National Association of Securities Dealers, Inc., 12921-12924 E5-1129 E5-1157 New York Stock Exchange, Inc., 12924-12934 E5-1132 Options Clearing Corp., 12934-12935 E5-1143 Philadelphia Stock Exchange, Inc., 12935-12938 E5-1131 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 12894 05-5142 Transportation Transportation Department See Federal Aviation Administration See Maritime Administration See Pipeline and Hazardous Materials Safety Administration Treasury Treasury Department See Internal Revenue Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 12952 05-5158 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 70 50 Wednesday, March 16, 2005 Rules and Regulations FEDERAL ELECTION COMMISSION 11 CFR Part 300 [Notice 2005-8] Political Party Committees Donating Funds to Certain Tax-Exempt Organizations and Political Organizations AGENCY:

Federal Election Commission. ACTION: Final rules and transmittal of regulations to Congress. SUMMARY: The Federal Election Commission is revising its regulations governing donations made or directed by national, State, district, and local political party committees to certain tax-exempt organizations and political organizations. The final rules allow these political party committees to make or direct donations of Federal funds to certain 501(c) tax-exempt organizations and certain 527 political organizations.

These revisions conform the Commission's rules to the decision of the U.S. Supreme Court in *McConnell* v. *Federal Election Commission* , which included a narrowing construction of section 101 of the Bipartisan Campaign Reform Act of 2002. Further information is provided in the supplementary information that follows. DATES: *Effective Date:* The effective date for the revisions to 11 CFR 300.11, 300.37, 300.50 and 300.51 is April 15, 2005. FOR FURTHER INFORMATION CONTACT: Ms.

Mai T. Dinh, Assistant General Counsel, or Mr. Albert J. Kiss, Attorney, 999 E Street NW., Washington, DC 20463,

(202)694-1650 or

(800)424-9530. SUPPLEMENTARY INFORMATION: Section 441i(d) of the Federal Election Campaign Act of 1971 (the “Act”), 2 U.S.C. 431 *et seq.* , prohibits national, State, district and local political party committees from soliciting any funds for, or making or directing donations to, two types of tax-exempt organizations (“tax-exempt organizations that actively participate in Federal elections”). These consist of

(1)organizations described in 26 U.S.C. 501(c) that are exempt from tax under 26 U.S.C. 501(a) (or that have submitted an application for determination of tax exempt status under section 501(a)) and that make expenditures or disbursements in connection with an election for Federal office (including expenditures or disbursements for Federal election activity); and

(2)political organizations described in 26 U.S.C. 527 (other than a political committee, a State, district or local committee of a political party, or the authorized campaign committee of a candidate for State or local office). 2 U.S.C. 441i(d)(1) and (2). This statutory provision was added to the Act by section 101 of the Bipartisan Campaign Reform Act of 2002 (“BCRA”), Public Law 107-155, 116 Stat. 81, 82-85 (2002). In 2002, the Commission promulgated rules at 11 CFR 300.11, 300.37, 300.50, and 300.51 implementing 2 U.S.C. 441i(d). *Explanation and Justification for Rules on Prohibited and Excessive Contributions: Non-Federal Funds or Soft Money* , 67 FR 49064, 49089-49091, and 49105-49106 (July 29, 2002) (“Soft Money Final Rules”). Except for the title of each, the final rule at 11 CFR 300.11 is identical to the final rule at 11 CFR 300.50, and the final rule at 11 CFR 300.37 is identical to the final rule at 11 CFR 300.51. *Id.* at 49106. Subsequently, in *McConnell* v. *Federal Election Commission* , 540 U.S. 93, 174-178 (2003), the Supreme Court upheld 2 U.S.C. 441i(d)'s prohibitions on the solicitation of funds for tax-exempt organizations that actively participate in Federal elections. The Supreme Court also upheld restrictions on making and directing donations of non-Federal funds to such tax-exempt organizations. Here, the Supreme Court stated that, “[a]bsent such a restriction, state and local party committees could accomplish directly what the antisolicitation restrictions prevent them from doing indirectly—namely, raising large sums of soft money to launder through tax-exempt organizations engaging in federal election activities.” *Id.* at 178-179. However, the Supreme Court stated that section 441i(d) raises overbreadth concerns “if read to restrict donations from a party's federal account— *i.e.* , funds that have already been raised in compliance with FECA's source, amount and disclosure limitations.” *Id.* at 179. The Court found “no evidence that Congress was concerned about, much less that it intended to prohibit, donations of money already fully regulated by FECA” and concluded that “political parties remain free to make or direct donations of money to any tax-exempt organization that has otherwise been raised in compliance with FECA.” *Id.* at 180-181. To conform its regulations to the Supreme Court's decision in *McConnell* , the Commission proposed modifying 11 CFR 300.11, 300.37, 300.50 and 300.51 to provide that political party committees, while prohibited from soliciting funds for tax-exempt organizations that actively participate in Federal elections, are now free to make or direct donations of Federal funds to any tax-exempt organization. 1 The Notice of Proposed Rulemaking (“NPRM”) containing this proposal was published in the **Federal Register** on December 9, 2004. 69 FR 71388 (Dec. 9, 2004). The public comment period closed on January 10, 2005. The Commission received two written comments (both jointly submitted) in response to the NPRM. 2 Both groups of commenters supported the proposed rules. 1 “Federal funds” are funds that comply with the limitations, prohibitions, and reporting requirements of the Act. 11 CFR 300.2(g). “Non-Federal funds” are funds that are not subject to the limitations and prohibitions of the Act. 11 CFR 300.2(k). 2 The comments are available at *http://www.fec.gov/register.html* under “Political Party Committees Donating Funds to Certain Tax-Exempt Organizations and Political Organizations.” These final rules are the same as the rules proposed in the NPRM, except that revised 11 CFR 300.37 and 300.51 explicitly encompass Levin funds, which are a type of non-Federal funds, and typographical errors in sections 300.37(b)(2) and 300.51(b)(2) are corrected. Under the Administrative Procedure 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 that follow were transmitted to Congress on March 10, 2005. Explanation and Justification 11 CFR 300.11—Prohibitions on Fundraising for and Donating to Certain Tax-Exempt Organizations Section 300.11 implements 2 U.S.C. 441i(d) by prohibiting national committees of a political party from soliciting any funds for, or making or directing any donations to, tax-exempt organizations that actively participate in Federal elections. To implement the Supreme Court's decision in *McConnell* , the Commission is amending paragraph

(a)of 11 CFR 300.11 to allow national party committees to make or direct donations of Federal funds to tax-exempt organizations that actively participate in Federal elections. Under the revised rule, national party committees must not make or direct donations of *non-Federal* funds to such tax-exempt organizations. This statutory and regulatory prohibition is consistent with 2 U.S.C. 441i(a) and 11 CFR 300.10(a), which more generally prohibit national party committees from spending funds or directing to another person donations of funds not subject to the limitations, prohibitions and reporting requirements of the Act. The prohibition on the solicitation of funds by national party committees for tax-exempt organizations that actively participate in Federal elections remains unchanged in section 300.11(a). The Commission is also making a technical amendment to section 300.11(b)(3) by removing the reference to a State, district, or local party committee, because only national party committees are the subject of section 300.11. Both groups of commenters agreed with the Commission's proposed modifications to section 300.11. The final rules for section 300.11 are identical to the proposed rules. 11 CFR 300.37—Prohibitions on Fundraising for and Donating to Certain Tax-Exempt Organizations Section 300.37 implements 2 U.S.C. 441i(d) by prohibiting State, district and local committees of a political party from soliciting any funds for, or making or directing any donations to, tax-exempt organizations that actively participate in Federal elections, similar to the restrictions placed on national committees of a political party in 11 CFR 300.11. As discussed above, restrictions on making or directing donations of Federal funds by these party committees are unconstitutional under *McConnell* . Consequently, the Commission is revising paragraph

(a)of 11 CFR 300.37 to permit the use of Federal funds in this manner. Thus, revised section 300.37(a) limits the prohibition on making or directing donations to donations of non-Federal funds. The prohibition on soliciting funds for tax-exempt organizations that actively participate in Federal elections remains in revised section 300.37(a). Additionally, the NPRM sought comment on whether State, district and local party committees should be allowed to make or direct donations of Levin funds to tax-exempt organizations that actively participate in Federal elections if permitted by State law. State, district and local party committees may use an allocable mix of Federal funds and Levin funds to pay for certain types of Federal election activity, including voter registration activity during the 120 days preceding a regularly scheduled Federal election, and voter identification, get-out-the-vote, and generic campaign activity that is conducted in connection with an election in which a candidate for Federal office appears on the ballot. 2 U.S.C. 431(20), 441i(b)(1) and (2); 11 CFR 100.24; *see also* 300.32 and 300.33. State, district and local party committees may not use Levin funds, or other non-Federal funds, for any public communication that promotes or supports or attacks or opposes a clearly identified candidate for Federal office. 2 U.S.C. 441i(b)(1); 11 CFR 300.32(c). In the Soft Money Final Rules, the Commission concluded that Levin funds are a “new type of non-Federal funds.” 67 FR at 49065. The Commission found that Levin funds are “unlike Federal funds, which are fully subject to the Act's requirements, and unlike ordinary non-Federal funds, because they are subject to certain additional requirements under BCRA.” *Id.* at 49085. Levin funds are generally described as non-Federal funds; *e.g.* , when presenting the Levin amendment to Congress, the sponsor of the Levin amendment stated “this amendment will allow the use of some *non-Federal* dollars by State parties for voter registration and get out the vote * * *” 147 Cong. Rec. S3124 (daily ed. Mar. 29, 2001) (Statement of Sen. Levin) [emphasis added]. 3 Consequently, State, district and local party committees may deposit Levin funds in their non-Federal account if they do not maintain a separate Levin account. 11 CFR 300.30(c)(3). Thus, Schedules H5 and H6 to FEC Form 3X and the related instructions treat Levin funds as one type of non-Federal funds. 3 Similarly, in the Explanation and Justification for the regulations implementing the Levin Amendment, the Commission noted that “BCRA's Levin Amendment provides that State, district, and local political party committees may spend certain non-Federal funds for Federal election activities if those funds comply with certain requirements. 2 U.S.C. 441i(b)(2)(A)(ii). Thus, these funds are unlike Federal funds, which are fully subject to the Act's requirements * * *” 67 FR at 49085. Both groups of commenters agreed with the Commission's proposed modifications to section 300.37. One group of commenters supported the restriction on the donation of Levin funds for several reasons. These commenters observed that the Supreme Court's statements about BCRA provide “no basis to think that the [Supreme] Court was including Levin funds in its reference to funds from a ‘party's federal account.’ ” Second, the commenters relied on the legislative history of section 441i(b)(2), which allows State parties to use only limited amounts of non-Federal funds for voter registration and get-out-the-vote activities. Third, the commenters noted the Commission's prior interpretation of section 441i(b)(2) in the Soft Money Final Rules, where the Commission explicitly treated Levin funds as a new type of non-Federal funds. Lastly, the commenters pointed to the danger that BCRA's Levin fund spending restrictions could easily be circumvented if State, district and local party committees are allowed to make or direct donations of Levin funds to tax-exempt organizations that actively participate in Federal elections because such organizations are not subject to section 441i(b)'s spending restrictions. Thus, these commenters find that “[t]he statutory language and legislative history of the Levin amendment establish that Levin funds are most accurately characterized as non-Federal funds.” These commenters conclude that “Levin funds are not the kind of funds that the [Supreme] Court [in *McConnell* ] intended to permit state parties to donate or direct to tax exempt groups.” The Commission concludes that, consistent with its previous treatment of Levin funds as non-Federal funds, Levin funds may not be donated or directed to tax-exempt organizations that actively participate in Federal elections. Levin funds are funds donated to State, district or local party committees, in accordance with State law, from corporations, labor organizations, or other “persons” in amounts up to $10,000 per calendar year. 4 2 U.S.C. 441i(b)(2); 11 CFR 300.2(i). There would be a danger of circumvention of BCRA's soft money restrictions if State, district and local party committees could donate corporate and labor union funds of up to $10,000 per donor to tax-exempt organizations that may use these funds for voter identification, voter registration, get-out-the-vote and other activities, and for communications that promote, support, attack or oppose Federal candidates, because State, district and local party committees may not use Levin funds for Federal election activity that refers to a clearly identified Federal candidate, and may not use Levin funds, or other non-Federal funds, for public communications that promote or support or attack or oppose a clearly identified Federal candidate. 2 U.S.C. 441i(b)(1) and (b)(2)(B)(i); 11 CFR 300.32(c). 4 Foreign nationals may not donate Levin funds. 2 U.S.C. 441e; 11 CFR 300.31(c). For these reasons, the final rules for section 300.37(a) are identical to the proposed rules, except that the final rules explicitly include Levin funds as a type of non-Federal funds subject to section 441i(d). The Commission is also correcting a typographical error in section 300.37(b)(2). The phrase “State, district or local committee *or* a political party” [emphasis added] is revised to read “State, district or local committee *of* a political party” [emphasis added]. 11 CFR 300.50—Prohibited Fundraising by National Party Committees For the reason discussed above regarding the revision to section 300.11, the Commission is revising paragraph

(a)of 11 CFR 300.50 to specify that a national committee of a political party may not make or direct donations of non-Federal funds to tax-exempt organizations that actively participate in Federal elections. The prohibition on soliciting funds for these groups remains in revised section 300.50(a). Similarly, the Commission is revising section 300.50(b)(3) by removing the reference to a State, district, or local party committee, because only national party committees are the subject of section 300.50. Both groups of commenters agreed with the Commission's proposed modifications to section 300.50. The final rules for section 300.50 are identical to the proposed rules. 11 CFR 300.51—Prohibited Fundraising by State, District, or Local Party Committees For the reasons discussed above regarding the revision to section 300.37, the Commission is revising paragraph

(a)of 11 CFR 300.51 to specify that a State, district or local committee of a political party may not make or direct donations of non-Federal funds, including Levin funds, to tax-exempt organizations that actively participate in Federal elections. The prohibition on soliciting funds for these groups remains in revised section 300.51(a). Both groups of commenters agreed with the Commission's proposed modifications to section 300.51. The final rules for section 300.51(a) are identical to the proposed rules, except that the final rules state explicitly that Levin funds are non-Federal funds. The Commission is also amending section 300.51(b)(2) to correct a typographical error. The phrase “State, district or local committee *or* a political party” [emphasis added] is revised to read “State, district or local committee *of* a political party” [emphasis added]. Other Issues One group of commenters urged the Commission to amend 11 CFR 102.17, 300.31(e) and 300.31(f) regarding the use of jointly raised or transferred Federal funds for Federal election activity by State, district and local party committees. These changes are beyond the scope of this rulemaking. Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory Flexibility Act) The Commission certifies that the attached rules do not have a significant economic impact on a substantial number of small entities for two reasons. First, the national, State, district and local party committees of the two major political parties are not small entities under 5 U.S.C. 601 because they are not small businesses, small organizations or small governmental jurisdictions. To the extent that other national, State, district and local party committees may fall within the definition of “small entities,” their numbers are not substantial. Second, the final rules narrow the scope of restrictions applicable to national, State, district and local political party committees, and thus do not have a significant economic impact on the affected entities. List of Subjects in 11 CFR Part 300 Campaign funds, Nonprofit organizations, Political committees and parties. For the reasons set out in the preamble, the Federal Election Commission amends subchapter C of chapter 1 of title 11 of the *Code of Federal Regulations* as follows: PART 300—NON-FEDERAL FUNDS 1. The authority citation for Part 300 continues to read as follows: Authority: 2 U.S.C. 434(e), 438(a)(8), 441a(a), 441i, 453. 2. In § 300.11, the introductory text of paragraph

(a)and paragraph (b)(3) are revised to read as follows: § 300.11 Prohibitions on fundraising for and donating to certain tax-exempt organizations (2 U.S.C. 441i(d)).

(a)*Prohibitions.* A national committee of a political party, including a national congressional campaign committee, must not solicit any funds for, or make or direct any donations of non-Federal funds to, the following organizations:

(b)* * *

(3)An entity that is directly or indirectly established, financed, maintained or controlled by an agent of a national committee of a political party, including a national congressional campaign committee. 3. In § 300.37, the introductory text of paragraph

(a)and paragraph (b)(2) are revised to read as follows: § 300.37 Prohibitions on fundraising for and donating to certain tax-exempt organizations (2 U.S.C. 441i(d)).

(a)*Prohibitions.* A State, district or local committee of a political party must not solicit any funds for, or make or direct any donations of non-Federal funds, including Levin funds, to:

(b)* * *

(2)An entity that is directly or indirectly established, financed, maintained or controlled by a State, district or local committee of a political party or an officer or agent acting on behalf of such an entity; or 4. In § 300.50, the introductory text of paragraph

(a)and paragraph (b)(3) are revised to read as follows: § 300.50 Prohibited fundraising by national party committees (2 U.S.C. 441i(d)).

(a)*Prohibitions on fundraising and donations.* A national committee of a political party, including a national congressional campaign committee, must not solicit any funds for, or make or direct any donations of non-Federal funds to the following organizations:

(b)* * *

(3)An entity that is directly or indirectly established, financed, maintained or controlled by an agent of a national committee of a political party, including a national congressional campaign committee. 5. In § 300.51, the introductory text of paragraph

(a)and paragraph (b)(2) are revised to read as follows: § 300.51 Prohibited fundraising by State, district, or local party committees (2 U.S.C. 441i(d)).

(a)*Prohibitions.* A State, district or local committee of a political party must not solicit any funds for, or make or direct any donations of non-Federal funds, including Levin funds, to:

(b)* * *

(2)An entity that is directly or indirectly established, financed, maintained or controlled by a State, district or local committee of a political party or an officer or agent acting on behalf of such an entity; or Dated: March 11, 2005. Scott E. Thomas, Chairman, Federal Election Commission. [FR Doc. 05-5159 Filed 3-15-05; 8:45 am]

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