Use of Campaign Funds for Candidate and Officeholder Security

Published date09 April 2024
Record Number2024-06863
Citation89 FR 24738
CourtFederal Election Commission
SectionProposed rules
Federal Register, Volume 89 Issue 69 (Tuesday, April 9, 2024)
[Federal Register Volume 89, Number 69 (Tuesday, April 9, 2024)]
                [Proposed Rules]
                [Pages 24738-24742]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2024-06863]
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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.
                ========================================================================
                Federal Register / Vol. 89, No. 69 / Tuesday, April 9, 2024 /
                Proposed Rules
                [[Page 24738]]
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                FEDERAL ELECTION COMMISSION
                11 CFR Part 113
                [Notice 2024-09]
                Use of Campaign Funds for Candidate and Officeholder Security
                AGENCY: Federal Election Commission.
                ACTION: Notice of proposed rulemaking.
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                SUMMARY: The Federal Election Commission proposes to amend its
                regulations regarding the use of campaign funds to pay for security
                measures for federal candidates and officeholders. The proposed rule
                would codify several Commission advisory opinions that authorized the
                use of campaign funds to pay for certain security measures and address
                additional issues raised in those advisory opinions. The Commission
                seeks comment on the proposed rule and has made no final decision on
                the issues presented in this rulemaking.
                DATES: Comments must be received on or before June 10, 2024. The
                Commission may hold a public hearing on this Notice. Commenters wishing
                to testify at a hearing must so indicate in their comments. If a
                hearing is to be held, the Commission will publish a notice in the
                Federal Register announcing the date and time of the hearing.
                ADDRESSES: All comments must be in writing. Commenters are encouraged
                to submit comments electronically via the Commission's website at
                http://sers.fec.gov/fosers, reference REG 2024-01. Alternatively,
                comments may be submitted in paper form addressed to the Federal
                Election Commission, Attn.: Mr. Robert M. Knop, Assistant General
                Counsel for Policy, 1050 First Street NE, Washington, DC 20463.
                 Each commenter must provide, at a minimum, his or her first name,
                last name, city, and state. All properly submitted comments, including
                attachments, will become part of the public record, and the Commission
                will make comments available for public viewing on the Commission's
                website and in the Commission's Public Records Office. Accordingly,
                commenters should not provide in their comments any information that
                they do not wish to make public, such as a home street address,
                personal email address, date of birth, phone number, social security
                number, or driver's license number, or any information that is
                restricted from disclosure, such as trade secrets or commercial or
                financial information that is privileged or confidential.
                FOR FURTHER INFORMATION CONTACT: Robert M. Knop, Assistant General
                Counsel for Policy, Luis M. Lipchak, Attorney, Anthony T. Buckley,
                Attorney, or Joseph P. Wenzinger, Attorney, 1050 First Street NE,
                Washington, DC 20463, (202) 694-1650 or (800) 424-9530.
                SUPPLEMENTARY INFORMATION: The Commission proposes to amend its
                regulations to clarify that federal candidates and officeholders may
                use campaign funds to pay for security measures so long as the security
                measures address ongoing dangers or threats that would not exist
                irrespective of the individual's status or duties as a federal
                candidate or federal officeholder. The proposed rule would be
                consistent with Commission advisory opinions that authorized such
                spending and would address additional issues raised in those advisory
                opinions. The Commission invites public comments on this proposed rule.
                I. Background
                A. Act and Commission Regulations
                 The Federal Election Campaign Act (the ``Act'') \1\ identifies six
                categories of permissible uses of contributions accepted by a federal
                candidate, two of which are ``ordinary and necessary expenses incurred
                in connection with the duties of the individual as a holder of Federal
                office,'' and ``any other lawful purpose not prohibited by 52 U.S.C.
                30114(b).'' \2\ Under 52 U.S.C. 30114(b), contributions accepted by a
                candidate may not be converted to ``personal use'' by any person.
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                 \1\ 52 U.S.C. 30101-45.
                 \2\ 52 U.S.C. 30114(a); see also 11 CFR 113.2(a)-(e).
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                 The Act and Commission regulations define ``personal use'' as the
                use of campaign funds ``to fulfill any commitment, obligation, or
                expense of a person that would exist irrespective of the candidate's
                election campaign or individual's duties as a holder of Federal
                office.'' \3\ The Act and Commission regulations provide a non-
                exhaustive list of expenses that, when paid using campaign funds,
                constitute per se conversion of those funds to personal use.\4\ The
                Commission determines on a case-by-case basis whether the use of
                campaign funds to pay expenses other than those listed would be a
                prohibited conversion of the funds to personal use.\5\
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                 \3\ 52 U.S.C. 30114(b)(2); see also 11 CFR 113.1(g) (defining
                ``personal use'').
                 \4\ See 52 U.S.C. 30114(b)(2); 11 CFR 113.1(g)(1)(i).
                 \5\ See 11 CFR 113.1(g)(1)(ii) (providing non-exhaustive list of
                expenses to be determined for personal use on a case-by-case basis).
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                 The Commission has long recognized that if a candidate ``can
                reasonably show that the expenses at issue resulted from campaign or
                officeholder activities, the Commission will not consider the use to be
                personal use.'' \6\
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                 \6\ Personal Use of Campaign Funds, 60 FR 7862, 7867 (Feb. 9,
                1995).
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                B. Security Measures
                 Neither the Act nor Commission regulations identify the use of
                campaign funds to pay for the costs of security measures for federal
                candidates or officeholders as per se personal use. In several advisory
                opinions, however, the Commission has permitted the use of campaign
                funds to pay for various security measures for federal candidates or
                officeholders.
                 The Commission has issued several advisory opinions authorizing the
                use of campaign funds for certain home security upgrades to protect
                against threats to the physical safety of federal officeholders and
                their families.\7\ The facts presented in those advisory opinions
                indicated that the threats were motivated by the requestors' public
                roles as federal officeholders, candidates, or both. The Commission
                [[Page 24739]]
                determined in each instance that the expenses for the proposed security
                upgrades would not have existed irrespective of the requestors' duties
                as federal officeholders or candidates.\8\ Therefore, the Commission
                concluded that the use of campaign funds to pay for the security
                upgrades was permissible under the Act and Commission regulations.\9\
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                 \7\ See Advisory Opinion 2022-02 (Steube) at 5 (approving use of
                campaign funds for the cost of a locking steel security gate at the
                federal officeholder's residence); Advisory Opinion 2020-06
                (Escobar) at 2 (authorizing the use of campaign funds for security
                lighting and wiring at a federal officeholder's residence); Advisory
                Opinion 2011-17 (Giffords) at 3 (approving use of campaign funds for
                installing improved exterior lighting, improved locks, and a duress
                alarm button); Advisory Opinion 2011-05 (Terry) at 4 (approving use
                of campaign funds for installation of an exterior closed circuit
                television monitor); Advisory Opinion 2009-08 (Gallegly) at 4
                (approving use of campaign funds for non-structural upgrades to home
                security system).
                 \8\ Additionally, in Advisory Opinion 2020-06 (Escobar), the
                Commission specified that the requested wiring and lighting costs
                ``constitute an integral part of an ordinary and necessary expense
                that may be paid with campaign funds.'' Advisory Opinion 2020-06
                (Escobar) at 4. Likewise, in Advisory Opinion 2022-02 (Steube), the
                Commission stated that the requested locking steel gate at the
                entrance to the property was a ``necessary component'' of a
                residential security system and the costs of which ``constitute an
                integral part of an ordinary and necessary expense that may be paid
                with campaign funds.'' Advisory Opinion 2022-02 (Steube) at 5.
                 \9\ See Advisory Opinion 2022-02 (Steube) at 5; Advisory Opinion
                2020-06 (Escobar) at 2; Advisory Opinion 2011-17 (Giffords) at 3;
                Advisory Opinion 2011-05 (Terry) at 4; Advisory Opinion 2009-08
                (Gallegly) at 4.
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                 The Commission also has previously considered the implications of
                the heightened threat environment faced by Members of Congress
                collectively, necessitating increased residential security measures
                even if an individual Member has not received direct threats. For
                example, in Advisory Opinion 2017-07 (Sergeant at Arms), the Commission
                considered information from the House Sergeant at Arms about the
                threats faced by Members of Congress due to their status as federal
                officeholders, and the recommendations of the Capitol Police that
                Members of Congress install or upgrade residential security systems to
                protect themselves and their families in response to those threats. In
                light of that information, the Commission concluded that certain costs
                of installing or upgrading home security systems in and around a
                Member's residence would constitute ordinary and necessary expenses
                incurred in connection with Members' duties as federal officeholders
                and that, therefore, Members of Congress may use campaign funds to pay
                reasonable costs associated with such home security systems.\10\
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                 \10\ Advisory Opinion 2017-07 (Sergeant at Arms) at 3.
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                 In two advisory opinions, the Commission has also considered
                whether campaign funds may be used to pay for window security film as
                an authorized security enhancement in response to a heightened threat
                environment faced by federal officeholders.\11\ In Advisory Opinion
                2022-05 (Crapo), the Commission considered whether campaign funds could
                be used to pay for a series of residential security enhancements
                recommended by the U.S. Capitol Police, including the installation of
                security film ``on all accessible windows to prevent surreptitious
                observation into the residence.'' \12\ Similarly, in Advisory Opinion
                2023-04 (Guy for Congress), the Commission considered whether campaign
                funds could be used to pay for the costs to purchase and install a
                security window film to protect a Member of Congress's home. The
                Commission determined in both instances that window security film, as a
                removeable security measure designed to mitigate potential threats
                stemming from the Members' duties as federal officeholders, falls
                within the category of ``non-structural security devices'' for which
                campaign funds could be used, citing Advisory Opinion 2017-07 (Sergeant
                at Arms).\13\
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                 \11\ See Advisory Opinion 2022-05 (Crapo) at 3 (approving use of
                campaign funds for the cost of window security film at the federal
                officeholder's residence); Advisory Opinion 2023-04 (Guy for
                Congress) at 4 (authorizing the use of campaign funds for window
                security film at a federal officeholder's residence).
                 \12\ Advisory Opinion 2022-05 (Crapo) at 3.
                 \13\ Advisory Opinion 2022-05 (Crapo) at 5; Advisory Opinion
                2023-04 (Guy for Congress) at 4.
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                 The Commission also has permitted the use of campaign funds to pay
                for security measures beyond home security upgrades.\14\ In Advisory
                Opinion 2021-03 (NRSC et al.), the Commission authorized the use of
                campaign funds to pay for ``bona fide, legitimate, professional
                personal security personnel'' as ordinary and necessary expenses
                incurred in connection with an officeholder's duties.\15\ The
                Commission concluded that such expenses were permissible due to the
                threats arising from members' status as federal officeholders,
                including the heightened threat environment faced by Members of
                Congress collectively.\16\
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                 \14\ See Advisory Opinion 2021-03 (NRSC et al.) at 2 (concluding
                that Members of Congress may use campaign funds to pay for bona
                fide, legitimate, professional personal security personnel to
                protect themselves and their immediate families due to threats
                arising from their status as officeholders).
                 \15\ Id.
                 \16\ See id. at 3.
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                 Last, in two advisory opinions the Commission authorized the use of
                campaign funds to pay for reasonable cybersecurity expenses as ordinary
                and necessary expenses incurred in connection with duties as a federal
                officeholder.\17\ In those opinions, the Commission also determined
                that the incidental benefit to others of cybersecurity measures, like
                the incidental benefit to others of home security measures to protect
                against physical harm, do not change the conclusion that such expenses
                are ordinary and necessary expenses incurred in connection with a
                federal officeholder's duties.\18\
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                 \17\ See Advisory Opinion 2018-15 (Wyden) at 4 (permitting use
                of campaign funds for cybersecurity expenses including hardware,
                software, consulting services, and emergency assistance); Advisory
                Opinion 2022-17 (Warren) at 5 (approving use of campaign funds for
                the incremental costs of professionally managed cybersecurity
                services for ongoing network monitoring, patch management, backup
                management, and remote incident remediation).
                 \18\ See Advisory Opinion 2022-17 (Warren) at 5.
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                II. Proposed Rule
                 Consistent with the advisory opinions described above authorizing
                the use of campaign funds to pay for security measures to protect
                federal candidates and federal officeholders, the Commission proposes
                to amend the regulatory definition of personal use to clarify that
                campaign funds may be spent on certain security measures. A general
                overview of the proposed rule is followed by specific details of each
                proposal. The Commission seeks comments on the proposed rule and
                emphasizes that it has not made any final decisions on whether or how
                to amend its regulations.
                A. Overview
                 The Commission's current regulations at 11 CFR 113.1(g)(1) through
                (9) address the personal use of campaign funds. The Commission proposes
                to add a new paragraph (g)(10) to address the use of campaign funds for
                security measures.
                 Proposed 11 CFR 113.1(g)(10) would provide that the use of campaign
                funds to pay for the reasonable costs of security measures for a
                federal candidate or federal officeholder is not personal use. The new
                regulation would only permit the use of campaign funds to pay for
                security measures that address ongoing dangers or threats that would
                not exist irrespective of the individual's status or duties as a
                federal candidate or federal officeholder. The proposed regulation
                would require that disbursements for security measures be for the usual
                and normal charge for such goods and services. Categories of
                permissible security measures and examples of such measures would be
                listed in the following subparagraphs.
                 Although the advisory opinions discussed above explicitly addressed
                only federal officeholders or individuals who were both federal
                candidates and federal officeholders, the proposed rule would apply to
                all candidates, including those who are not officeholders. This is
                consistent with the statutory and
                [[Page 24740]]
                regulatory framework on the personal use of campaign funds, which
                generally treats candidates and officeholders the same. Should the
                rule, if adopted, nonetheless distinguish between a federal
                officeholder and a candidate who is not a federal officeholder as it
                pertains to the permissible use of campaign funds to pay for security
                measures, for example on the grounds that candidates may not
                necessarily face the same heightened threat environment as sitting
                Members of Congress?
                 Proposed 11 CFR 113.1(g)(10)(i) would identify non-structural
                security devices as a category of security measures for which
                reasonable expenses would not be personal use and provides a non-
                exhaustive list of examples of non-structural security devices.
                 Proposed 11 CFR 113.1(g)(10)(ii) would identify structural security
                devices as a category of security measures for which reasonable
                expenses would not be personal use and include a non-exhaustive list of
                examples of structural security devices. This regulation would only
                permit structural security measures that are intended solely to provide
                security and not to improve the property or increase its value.
                 Proposed 11 CFR 113.1(g)(10)(iii) would identify professional
                security personnel and services as a category of security measures for
                which reasonable expenses would not be personal use.
                 Last, proposed 11 CFR 113.1(g)(10)(iv) would identify cybersecurity
                software, devices, and services as a category of security measures for
                which reasonable expenses would not be personal use.
                B. Proposed 11 CFR 113.1(g)(10)--Candidate and Federal Officeholder
                Security
                 Consistent with the advisory opinions described above, the proposed
                rule would permit the use of campaign funds to pay for the reasonable
                costs of security measures so long as the security measures address
                ongoing dangers or threats that would not exist irrespective of the
                individual's status or duties as a federal candidate or federal
                officeholder. The proposed regulation would require that disbursements
                for security measures be for the usual and normal charge for such goods
                or services. The usual and normal charge would be defined as, in the
                case of goods, the price of those goods in the market in which they are
                ordinarily purchased, and, in the case of services, the hourly or
                piecework charge for the services at a commercially reasonable rate
                prevailing at the time the services were rendered. The proposed rule
                would provide a non-exhaustive list of permissible security measures
                based on the security measures that the Commission has previously
                approved via advisory opinions. Are ``reasonable costs'' an appropriate
                standard for determining the amount in campaign funds that may be used
                to pay for the security measures, or does a reasonableness test invite
                uncertainty? Should the regulation apply a reasonableness standard to
                the amount of expenses overall or to the types of security measures for
                which campaign funds are used? How would the Commission evaluate the
                reasonableness of overall costs or of costs for specific security
                measures? What kind of guidelines could the Commission use to evaluate
                the reasonability of a given expense or of aggregate expenses for
                security measures? Should the Commission consider different limitations
                on the security measures or ``ordinary and necessary costs of security
                measures''? \19\ Apart from the reasonability of the amount in campaign
                funds used to pay for security measures, the Commission is proposing to
                require that disbursements be for the usual and normal charge for such
                goods or services. The proposed definition of ``usual and normal
                charge'' is derived from the Commission's regulation at 11 CFR
                100.52(d), describing in-kind contributions. This definition is also
                consistent with the requirement in 11 CFR 113.1(g)(1)(H), which
                prohibits a candidate from paying a salary to a family member unless
                the salary is in exchange for bona fide services and the salary payment
                is for the fair market value of the services. This is intended to
                prevent candidates or officeholders from converting campaign funds to
                personal use by paying friends or family members above-market rates for
                security-related goods and services and to ensure that candidates and
                officeholders do not receive a potentially impermissible in-kind
                contribution from vendors.\20\ Should the Commission consider any other
                limitations to ensure that candidates and officeholders don't enrich
                friends and family members?
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                 \19\ See, e.g., 11 CFR 100.52(d)(2), 11 CFR 100.111(e)(2).
                 \20\ See Advisory Opinion 2022-17 (Warren) fn. 22.
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                 The requirement that threats be ``ongoing'' is meant to be flexible
                and permissive, but to still set some concrete limits on uses, such as
                after threats subside or the person is no longer an officeholder or
                candidate. Is ``ongoing'' appropriate limiting language to qualify
                under the rule? Should the Commission use different limiting language
                on the nature of the threats in addition to or instead of ``ongoing''
                (e.g., ``direct,'' ``specific'' or ``persistent'')? If a security
                measure is taken in response to a specific threat, as opposed to the
                ``heightened threat environment'' discussed below, should the
                Commission require that such threat or threats be reported to law
                enforcement before a committee may use campaign funds to pay for
                security measures related to that threat?
                 Several advisory opinions have approved the use of campaign funds
                for security measures due to ongoing--but not necessarily specific--
                threats to the requestors due to their status as federal officeholders
                and considering the ``heightened threat environment'' in recent
                years.\21\ Should the rule explicitly require that candidates or
                officeholders face a ``heightened threat environment''? If so, should
                the rule explain how the Commission will evaluate whether there is a
                ``heightened threat environment''? How would the Commission evaluate
                whether a ``heightened threat environment'' no longer exists?
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                 \21\ See Advisory Opinion 2021-03 (NRSC et al.); Advisory
                Opinion 2017-07 (Sergeant at Arms).
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                 The Commission has followed Advisory Opinion 2017-07 (Sergeant at
                Arms) in concluding there is a ``heightened threat environment'' in
                more recent advisory opinions, but should the rule allow other bases
                for establishing threats or dangers, such as a law enforcement opinion
                or some other standard? Should a law enforcement or a professional
                security firm's recommendation be required before a candidate or
                officeholder may purchase security measures with campaign funds, or
                should such recommendation at least establish a presumption that the
                security measures do ``address'' an ongoing danger or threat? The
                Commission does not intend for the proposed rule to encompass privacy
                measures that do not provide a security function, e.g. privacy hedges
                or one-way mirror glass. Does the use of the term ``security measures''
                in the proposed rule address that distinction or is additional
                clarification needed in the rule?
                 In addition to candidates and officeholders, should the rule also
                permit campaign funds to be used to pay for security measures
                specifically for staff members of a candidate or officeholder, for
                example, to pay for security measures to protect a staff member's
                house? Further, should the rule also permit campaign funds to be used
                to pay for security measures for the candidate or officeholder's
                family,
                [[Page 24741]]
                including family members that do not reside with the candidate or
                officeholder? To ensure that security measures are primarily for the
                protection and benefit of a federal candidate or federal officeholder
                and no other persons, should the rule further stipulate that any
                benefits accruing to other household members or visitors from the
                security measures must be ``incidental'' to the protection of the
                candidate or officeholder? \22\ Should certain security measures be
                explicitly permitted for the family members of candidates or
                officeholders? \23\
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                 \22\ See Advisory Opinion 2022-17 (Warren) at 5 (concluding that
                candidate and officeholder may use campaign funds for cybersecurity
                measures to protect her home network, notwithstanding that family
                members and visitors may also connect their personal devices to
                candidate's home network, so long as any benefit to others are
                incidental).
                 \23\ See Advisory Opinion 2021-03 (NRSC et al.) at 2.
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                 Finally, should the Commission require any recordkeeping
                requirements beyond those that apply to all disbursements by an
                authorized committee? \24\
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                 \24\ See 11 CFR 102.9.
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                C. Proposed 11 CFR 113.1(g)(10)(i)--Non-Structural Security Devices
                 Under existing regulations, the Commission has authorized the use
                of campaign funds for non-structural security devices in several prior
                advisory opinions under the rationale that expenses for such security
                measures would not exist irrespective of the duties of a federal
                officeholder or candidate.\25\
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                 \25\ See Advisory Opinion 2011-17 (Giffords) at 3 (approving use
                of campaign funds for security expenses that would not exist
                irrespective of duties as a federal officeholder or candidate);
                Advisory Opinion 2011-05 (Terry) at 4 (same); and Advisory Opinion
                2009-08 (Gallegly) at 4 (same). See also 2017-07 (Sergeant at Arms)
                at 2 (concluding that Members of Congress may use campaign funds for
                security expenses as ordinary and necessary expenses); Advisory
                Opinion 2018-15 (Wyden) at 3 (concluding that campaign funds can be
                used to pay for cybersecurity expenses as they are ordinary and
                necessary expenses in connection with duties of a federal office
                holder).
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                 Proposed 11 CFR 113.1(g)(10)(i) would identify non-structural
                security devices as a category of security measures for which
                reasonable expenses would not be personal use and provides a non-
                exhaustive list of examples of non-structural security devices that
                includes security hardware, locks, alarm systems, motion detectors, and
                security camera systems.
                 Are there additional examples of ``non-structural security
                devices'' that should be explicitly listed in this category? For
                example, should the rule explicitly allow payments for ``training and
                equipment for personal defense?'' Should the use of these devices be
                further limited in any way, for example limiting the use of
                transportable security devices only to residences or offices?
                D. Proposed 11 CFR 113.1(g)(10)(ii)--Structural Security Devices
                 The Commission has previously concluded that the use of campaign
                funds for certain structural security devices, such as wiring,
                lighting, gates, doors, and fencing, would not be personal use so long
                as they are not intended to improve the property or increase its value.
                The Commission reasoned that such expenses were ordinary and necessary
                expenses related to the duties of a federal candidate or federal
                officeholder.\26\ Proposed 11 CFR 113.1(g)(10)(ii) would identify
                structural security devices as a category of security measures for
                which reasonable expenses may be paid for using campaign funds by
                federal officeholders and candidates. Proposed 11 CFR 113.1(g)(10)(ii)
                would also include a non-exhaustive list of examples of structural
                security devices. The proposed rule would only permit structural
                security measures that are intended solely to provide security and not
                to improve the property or increase its value.
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                 \26\ See Advisory Opinion 2020-06 (Escobar) at 3 (authorizing
                the use of campaign funds for security lighting and wiring at
                member's residence); Advisory Opinion 2022-02 (Steube) at 5
                (permitting the use of campaign funds for the installation of a
                security gate at member's residence).
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                 Should the use of structural security devices be limited to
                particular properties, such as a candidate or officeholder's residence,
                which are the only properties for which the Commission has specifically
                approved structural security devices? \27\ Is the limitation on the use
                of structural security devices--namely that the devices may not be
                intended to improve the property or increase its value--sufficient or
                should the Commission use a different limiting language? \28\ Should
                the proposed rule provide that an incidental improvement to the
                property or the increase in its value as a result of an installation of
                a structural security device nonetheless would be an acceptable use of
                campaign funds? \29\
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                 \27\ See Advisory Opinion 2020-06 (Escobar) at 3 (authorizing
                the use of campaign funds for security lighting and wiring at
                member's residence); Advisory Opinion 2022-02 (Steube) at 5
                (permitting the use of campaign funds for the installation of a
                security gate at member's residence); Advisory Opinion 2022-05
                (Crapo) at 5 (concluding that campaign funds can be used for various
                security upgrades at member's residences).
                 \28\ See Advisory Opinion 2022-02 (Steube) at 4-5 (``[T]he
                purchase and installation of the gate is intended to provide an
                effective security system and is not intended for the purpose of
                improving your home.''); Advisory Opinion 2020-06 (Escobar) at 3
                (approving use of campaign funds for installation of security
                lighting and wiring ``meant solely for supporting the effectiveness
                of the security system and not as an `improvement' to your home.'').
                 \29\ Id.
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                E. Proposed 11 CFR 113.1(g)(10)(iii)--Professional Security Personnel
                and Services
                 The Commission has previously authorized the use of campaign funds
                for personal security expenses for Members of Congress and their
                families as ordinary and necessary expenses arising from their status
                as officeholders when they are not under the protection of federal
                agents.\30\ Proposed 11 CFR 113.1(g)(10)(iii) would establish
                professional security personnel and services as a category of security
                expenses for which campaign funds may be used.
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                 \30\ See Advisory Opinion 2021-03 (NRSC et al.) at 3 (concluding
                that Members of Congress may use campaign funds to pay for security
                personnel to protect themselves and their immediate families due to
                threats arising from their status as officeholders ``when federal
                agents are not protecting the Members or the Members' families.'').
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                 Under the proposed rule, campaign funds could be used to pay for
                personal security expenses of federal candidates and officeholders so
                long as the security measures address ongoing dangers or threats that
                would not exist irrespective of the individual's status or duties as a
                federal candidate or federal officeholder. Should this proposed rule be
                further limited such that payment for professional security personnel
                or similar services is permitted only when candidates or officeholders
                are not already receiving protection from law enforcement? \31\ Should
                the proposed rule explicitly permit the use of campaign funds for
                professional security personnel or similar services for the immediate
                family members of federal candidates or federal officeholders? \32\
                Should the proposed rule require that professional security personnel
                be bona fide, legitimate, professional personal security or have
                additional qualifications or licenses?
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                 \31\ Id.
                 \32\ Id.
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                F. Proposed 11 CFR 113.1(g)(10)(iv)--Cybersecurity Software, Devices,
                and Services
                 Lastly, in two prior instances, the Commission has authorized the
                use of campaign funds for cybersecurity measures including software,
                devices, and services as ordinary and necessary expenses related to a
                federal officeholder's duties.\33\ Proposed 11
                [[Page 24742]]
                CFR 113.1(g)(10)(iv) would establish cybersecurity software, devices,
                and services as a category of security measures that may be paid for
                using campaign funds for federal officeholders and candidates. Should
                this proposed rule be further limited to only those that provide
                ``incidental'' benefits to persons other than the candidate or
                officeholder, such as family members or campaign staff, who might also
                benefit from enhanced cybersecurity'' when using the software, devices,
                or services provided to the candidate or officeholder? \34\ And, if so,
                should the Commission define the scope of permissible ``incidental''
                benefits?
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                 \33\ See Advisory Opinion 2022-17 (Warren) at 5 (concluding that
                federal officeholder could use campaign funds for cybersecurity
                improvements to her home network without violating the prohibition
                against personal use ``so long as the benefits accruing to household
                members and visitors required by the protection of the home network
                are incidental.''); Advisory Opinion 2018-15 (Wyden) at 4
                (concluding that the use of campaign funds to pay for certain
                cybersecurity measures for United States Senators would constitute
                ordinary and necessary expenses incurred in connection with their
                duties as federal officeholders.)
                 \34\ See Advisory Opinion 2022-17 (Warren) at 5.
                ---------------------------------------------------------------------------
                Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory
                Flexibility Act)
                 The Commission certifies that this proposed rule, if adopted, would
                not have a significant economic impact on a substantial number of small
                entities. This proposed rule would provide flexibility to principal
                campaign committees that choose to use campaign funds to pay for
                security measures for federal candidates or officeholders. Any proposed
                rule that could be construed as placing an obligation on a principal
                campaign committee would apply only to campaigns that choose to pay for
                security measures for federal candidates or officeholders. This
                proposed rule would not impose any new recordkeeping, reporting, or
                financial obligations on principal campaign committees that do not
                choose to pay for security measures for federal candidates or
                officeholders, and any such new obligations that may be imposed on
                principal campaign committees that do choose to pay for such security
                measures would be minimal. Thus, to the extent that any entities
                affected by these proposed rules might fall within the definition of
                ``small businesses'' or ``small organizations,'' the economic impact of
                complying with this rule would not be significant.
                List of Subjects in 11 CFR Part 113
                 Campaign funds.
                 For the reasons set out in the preamble, the Federal Election
                Commission proposes to amend 11 CFR part 113 as follows:
                PART 113--PERMITTED AND PROHIBITED USES OF CAMPAIGN ACCOUNTS
                0
                1. The authority citation for part 113 continues to read as follows:
                 Authority: 52 U.S.C. 30102(h), 30111(a)(8), 30114, and 30116.
                0
                2. In Sec. 113.1, add paragraph (g)(10) to read as follows: Sec.
                113.1 Definitions (52 U.S.C. 30114).
                * * * * *
                 (g) * * *
                 (10) Candidate and federal officeholder security. The use of
                campaign funds to pay for the reasonable costs of security measures for
                a federal candidate or federal officeholder is not personal use, so
                long as the security measures address ongoing dangers or threats that
                would not exist irrespective of the individual's status or duties as a
                federal candidate or federal officeholder. Disbursements for security
                measures must be for the usual and normal charge for such goods or
                services. Usual and normal charge means, in the case of goods, the
                price of those goods in the market in which they are ordinarily
                purchased, and, in the case of services, the hourly or piecework charge
                for the services at a commercially reasonable rate prevailing at the
                time the services were rendered. Examples of such security measures
                include, but are not limited to:
                 (i) Non-structural security devices, such as security hardware,
                locks, alarm systems, motion detectors, and security camera systems;
                 (ii) Structural security devices, such as wiring, lighting, gates,
                doors, and fencing, so long as such measures are intended solely to
                provide security and not to improve the property or increase its value;
                 (iii) Professional security personnel and services;
                 (iv) Cybersecurity software, devices, and services.
                 Dated: March 27, 2024.
                 On behalf of the Commission.
                Sean J. Cooksey,
                Chairman, Federal Election Commission.
                [FR Doc. 2024-06863 Filed 4-8-24; 8:45 am]
                BILLING CODE P
                

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