FEC elects officers for 2023, approves two advisory opinions, a Notification of Availability, and legislative recommendations

WASHINGTON – At its open meeting today, the Federal Election Commission elected Dara Lindenbaum to serve as Chair and Sean J. Cooksey to serve as Vice Chairman for 2023. The Commission also approved two advisory opinions, a Notification of Availability on a Rulemaking Petition, and a package of legislative recommendations to transmit to Congress for its consideration.

Election of Officers. The Commission elected Vice Chair Lindenbaum to serve as Chair and Commissioner Cooksey to serve as Vice Chairman of the Commission for 2023.

Advisory Opinion 2022-22 (DataVault I) The Commission approved an advisory opinion in response to a request from DataVault. The Commission concluded that DataVault’s proposal to create and sell nonfungible tokens (NFTs) to political committees for use in the committees’ fundraising activities would be permissible under the Federal Election Campaign Act of 1971, as amended (the Act), and Commission regulations because DataVault proposes to sell the NFTs to the committees in the ordinary course of business, at the usual and normal charge, and under the same terms and conditions as its non-political clients, which would not result in prohibited corporate in-kind contributions to the committees. During the discussion, the Commission heard from the requestor and counsel for the requestor.

Advisory Opinion 2022-23 (DataVault II) The Commission approved a second advisory opinion in response to a request from DataVault. The Commission concluded that DataVault’s proposal to license a patented audio technology to political committees for use in their fundraising activities is permissible under the Act and Commission regulations because DataVault would do so in the ordinary course of business, at the usual and normal charge and on the same terms and conditions as its non-political clients. As a result, the proposal would not result in prohibited corporate in-kind contributions to the political committees. During the discussion, the Commission heard from the requestor and counsel for the requestor.

REG 2022-06 Notification of Availability on a Rulemaking Petition on Disgorgement of Contributions. The Commission approved a Draft Notification of Availability on a Petition for Rulemaking submitted by Campaign Legal Center. The petitioner requests that the Commission amend its regulations regarding the disposal of illegal contributions to include disgorgement to the United States Treasury. The Commission seeks comment on the Petition and will consider whether to initiate a rulemaking after the comment period has closed.

Legislative Recommendations to Congress 2022. The Commission approved a package of 15 legislative recommendations to transmit to the President and to Congress for consideration, including four that the Commission identifies as those of highest priority:

• Make the Administrative Fine Program for Reporting Violations Permanent
• Increase the Rate of Pay for FEC Staff Director and General Counsel
• Amend the Foreign National Prohibition to Include Substantial Assistance
• Amend the Foreign National Prohibition to Include State and Local Ballot Initiatives, Referenda and Recall Elections

The other 11 legislative recommendations are:

• Electronic Filing of Electioneering Communication Reports
• Prohibit Fraudulent PAC Practices
• Fraudulent Misrepresentation of Campaign Authority
• Conversion of Campaign Funds
• Prohibit Aiding or Abetting the Making of Contributions in Name of Another
• Require Disclosures to Contributors Regarding Recurring Contributions
• Increase and Index for Inflation Thresholds and Exemptions
• Permit Political Committees to Make Disbursements by Methods Other Than Check
• Extend the Respondent Notification Period from Five to Ten Days
• Extend the Time to Establish Reporting Dates for Special Elections
• Update the Federal Campaign Finance Statutes

The Commission received one comment on the draft Legislative Recommendations.