FEC Requesting Comments on Revised Member Rulemaking

For Immediate Release:                                                                                             Contact:   Ron Harris
December 17, 1998                                                                                                                       Sharon Snyder
                                                                                                                                                        Ian Stirton
                                                                                                                                                        Kelly Huff


 

 


FEC REQUESTING COMMENTS ON REVISED ‘MEMBER’ RULEMAKING


WASHINGTON -- The Federal Election Commission is seeking comments from the public on
additional proposed revisions to its rules governing who qualifies as a "member"
of a membership organization.

Although the Federal Election Campaign Act (FECA) of 1971 prohibits direct corporate
contributions in connection with federal election campaigns, it permits corporations,
including incorporated membership organizations, to solicit contributions from their
restricted class to a separate segregated fund (commonly known as a PAC), and to make
unlimited communications containing express electoral advocacy to its restricted class.
The restricted class consists of the organization’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 organization. 

The initial Notice of Proposed Rulemaking (NPRM) was published in the Federal Register
on December 22, 1997. The additional proposed revisions to the "member" rule
were published December 16, 1998 in the
Federal Register. 

The newest proposed revisions focus primarily on the attributes of membership
associations, although qualifications of members are also addressed. The rules would
require, for example, that membership organizations be composed entirely of members, and
that the authority to direct and control the organization be vested in some or all of its
members. The proposal would also require that members pay annual dues in an amount set by
the organization, or renew their membership in writing on an annual basis.

 

 

This NPRM also proposes that a "membership organization" include
unincorporated associations such as partnerships for purposes of the "internal
communications" rule. This would cover those entities that are not trade
associations, cooperatives, corporations without capital stock, or labor organizations,
that nevertheless qualified as membership organizations for purposes of these rules.

Comments on the proposal should be addressed to Ms. Susan E. Propper, Assistant General
Counsel, and must be submitted in either written or electronic form. Faxed comments should
be sent to (202) 219-3923, with printed copy follow-up. Electronic mail comments should be
sent to members@fec.gov, and should include full name and postal service address of
the commenter within the text of the message. Electronic comments that do not contain full
name, electronic mail address, and postal service address of the commenter will not be
considered.

Comments must be received no later than February 1, 1999.

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