[House Report 114-665]
[From the U.S. Government Publishing Office]


114th Congress     }                                      {     Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                      {    114-665

======================================================================
 
AMENDING THE FEDERAL ELECTION CAMPAIGN ACT OF 1971 TO PERMIT CANDIDATES 
FOR ELECTION FOR FEDERAL OFFICE TO DESIGNATE AN INDIVIDUAL WHO WILL BE 
 AUTHORIZED TO DISBURSE FUNDS OF THE AUTHORIZED CAMPAIGN COMMITTEES OF 
        THE CANDIDATE IN THE EVENT OF THE DEATH OF THE CANDIDATE

                                _______
                                

  July 5, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mrs. Miller of Michigan, from the Committee on House Administration, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4734]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 4734) to amend the Federal Election Campaign Act 
of 1971 to permit candidates for election for Federal office to 
designate an individual who will be authorized to disburse 
funds of the authorized campaign committees of the candidate in 
the event of the death of the candidate, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                          Purpose and Summary

    The Committee on House Administration, to whom was referred 
the bill (H.R. 4734) to amend the Federal Election Campaign Act 
of 1971 to permit candidates for election for Federal office to 
designate an individual who will be authorized to disburse 
funds of the authorized campaign committees of the candidate in 
the event of the death of the candidate, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                Background and Need for the Legislation

    H.R. 4734 permits candidates for election to federal office 
to designate an individual who will be authorized to disburse 
funds of the authorized campaign committees of the candidate in 
the event of the death of the candidate and to provide 
instructions regarding the disbursement of such funds by the 
designee. The bill also allows the candidate to designate a 
second individual to perform those functions in the event of 
the death or incapacity of the designee. This limited authority 
to direct the disbursement of funds is provided notwithstanding 
any state law authorizing any other person to direct the 
disbursement of the campaign's funds.
    H.R. 4734 amends section 302 of the Federal Election 
Campaign Act of 1971, by adding a section providing that a 
candidate for federal office may submit to the Federal Election 
Commission a signed, written statement designating an 
individual to be authorized to direct the disbursement of the 
funds of the authorized campaign committees of the candidate in 
the event of the death of the candidate, and may also provide 
instructions regarding the disbursement of such funds. H.R. 
4734 also allows for a second designee to be appointed in the 
event of the death or incapacity of the original designee. The 
Federal Election Commission is directed to develop such forms 
as are necessary to implement H.R. 4734.

                               Conclusion

    H.R. 4734 provides a common sense solution to ensure 
campaign funds are disbursed in accordance with the candidate's 
wishes.

                       Introduction and Referral

    On March 14, 2016, Rep. Robert Brady (PA-1) introduced H.R. 
4734, which was referred to the Committee on House 
Administration.

                                Hearings

    There were no legislative hearings held on H.R. 4734.

                        Committee Consideration

    On May 17, 2016, the Committee on House Administration met 
to consider H.R. 4734. The Committee ordered the bill reported 
favorably to the House without amendment by voice vote with a 
quorum present.

                         Committee Record Votes

    In compliance with House rule XIII, clause 3(b), requiring 
the results of each record vote on an amendment or motion to 
report, together with the names of those voting for and 
against, to be printed in the Committee report, the Committee 
states that there were no record votes during the Committee's 
consideration of H.R. 4734.

            Committee Oversight Findings and Recommendations

    In compliance with House rule XIII, clause 3(c)(1), the 
Committee states that the findings and recommendations of the 
Committee, based on oversight activities under House rule X, 
clause 2(b)(1), are incorporated into the general discussion 
section of this report.

            Statement of Budget Authority and Related Items

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 4734, from the 
Director of the Congressional Budget Office.
                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 9, 2016.
Hon Candice Miller,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4734, a bill to 
amend the Federal Election Campaign Act of 1971 to permit 
candidates for election for federal office to designate an 
individual who will be authorized to disburse funds of the 
authorized campaign committees of the candidate in the event of 
the death of the candidate.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4734--A bill to amend the Federal Election Campaign Act of 1971 to 
        permit candidates for election for federal office to designate 
        an individual who will be authorized to disburse funds of the 
        authorized campaign committees of the candidate in the event of 
        the death of the candidate

    H.R. 4734 would amend federal law to allow a candidate for 
federal office the option of granting an individual the 
responsibility of disbursing campaign funds in the event of the 
candidate's death. Under current law, that role lies with the 
campaign treasurer. Under the bill, the Federal Election 
Commission (FEC) would be responsible for regulating such 
designations and for registering information filed by 
candidates.
    Based on information from the FEC, CBO estimates that 
implementing H.R. 4734 would cost about $500,000 in 2017; such 
spending would be subject to the availability of appropriated 
funds. That amount includes one-time computer-related expenses 
as well as the cost of issuing new regulations. In future 
years, the legislation would increase general administrative 
costs of the FEC, but we estimate that those costs would be 
insignificant.
    Enacting H.R. 4734 would not affect direct spending or 
revenues; therefore, pay-as-you go procedures do not apply. CBO 
estimates that enacting H.R. 4734 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    H.R. 4734 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                    Performance Goals and Objectives

    In compliance with House rule XIII, clause 3(c)(4), the 
Committee states that the general discussion section of this 
report includes a statement of the general performance goals 
and objectives, including outcome-related goals and objectives.

                    Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program; 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139; or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                  Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

               Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4). The Committee has determined that the bill contains no 
unfunded mandate on the private sector, nor does it impose a 
Federal intergovernmental mandate on State, local, or tribal 
governments.

                   Constitutional Authority Statement

    Congress has the power to enact this legislation pursuant 
to Article 1, Section 4.: ``The Times, Places and Manner of 
holding Elections for Senators and Representatives, shall be 
prescribed in each State by the Legislature thereof; but the 
Congress may at any time by Law make or alter such Regulations, 
except as to the Places of choosing Senators.''

                          Advisory on Earmarks

    In accordance with House rule XXI, clause 9, the Committee 
states that H.R. 4734 does not contain any congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9(e), 9(f), or 9(g) of rule XXI.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                 FEDERAL ELECTION CAMPAIGN ACT OF 1971




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TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

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                  organization of political committees

  Sec. 302. (a) Every political committee shall have a 
treasurer. No contribution or expenditure shall be accepted or 
made by or on behalf of a political committee during any period 
in which the office of treasurer is vacant. No expenditures 
shall be made for or on behalf of a political committee without 
the authorization of the treasurer or his or her designated 
agent.
  (b)(1) Every person who receives a contribution for an 
authorized political committee shall, no later than 10 days 
after receiving such contribution, forward to the treasurer 
such contribution, and if the amount of the contribution is in 
excess of $50 the name and address of the person making the 
contribution and the date of receipt.
  (2) Every person who receives a contribution for a political 
committee which is not an authorized committee shall--
          (A) if the amount of the contribution is $50 or less, 
        forward to the treasurer such contribution no later 
        than 30 days after receiving the contribution; and
          (B) if the amount of the contribution is in excess of 
        $50, forward to the treasurer such contribution, the 
        name and address of the person making the contribution, 
        and the date of receipt of the contribution, no later 
        than 10 days after receiving the contribution.
  (3) All funds of a political committee shall be segregated 
from, and may not be commingled with, the personal funds of any 
individual.
  (c) The treasurer of a political committee shall keep an 
account of--
          (1) all contributions received by or on behalf of 
        such political committee;
          (2) the name and address of any person who makes any 
        contribution in excess of $50, together with the date 
        and amount of such contribution by any person;
          (3) the identification of any person who makes a 
        contribution or contributions aggregating more than 
        $200 during a calendar year, together with the date and 
        amount of any such contribution;
          (4) the identification of any political committee 
        which makes a contribution, together with the date and 
        amount of any such contribution; and
          (5) the name and address of every person to whom any 
        disbursement is made, the date, amount, and purpose of 
        the disbursement, and the name of the candidate and the 
        office sought by the candidate, if any, for whom the 
        disbursement was made, including a receipt, invoice, or 
        canceled check for each disbursement in excess of $200.
  (d) The treasurer shall preserve all records required to be 
kept by this section and copies of all reports required to be 
filed by this title for 3 years after the report is filed. For 
any report filed in electronic format under section 304(a)(11), 
the treasurer shall retain a machine-readable copy of the 
report as the copy preserved under the preceding sentence.
  (e)(1) Each candidate for Federal office (other than the 
nominee for the office of Vice President) shall designate in 
writing a political committee in accordance with paragraph (3) 
to serve as the principal campaign committee of such candidate. 
Such designation shall be made no later than 15 days after 
becoming a candidate. A candidate may designate additional 
political committees in accordance with paragraph (3) to serve 
as authorized committees of such candidate. Such designation 
shall be in writing and filed with the principal campaign 
committee of such candidate in accordance with subsection 
(f)(1).
  (2) Any candidate described in paragraph (1) who receives a 
contribution, or any loan for use in connection with the 
campaign of such candidate for election, or makes a 
disbursement in connection with such campaign, shall be 
considered, for purposes of this Act, as having received the 
contribution or loan, or as having made the disbursement, as 
the case may be, as an agent of the authorized committee or 
committees of such candidate.
  (3)(A) No political committee which supports or has supported 
more than one candidate may be designated as an authorized 
committee, except that--
          (i) the candidate for the office of President 
        nominated by a political party may designate the 
        national committee of such political party as a 
        principal campaign committee, but only if that national 
        committee maintains separate books of account with 
        respect to its function as a principal campaign 
        committee; and
          (ii) candidates may designate a political committee 
        established solely for the purpose of joint fundraising 
        by such candidates as an authorized committee.
  (B) As used in this section, the term ``support'' does not 
include a contribution by any authorized committee in amounts 
of $2,000 or less to an authorized committee of any other 
candidate.
  (4) The name of each authorized committee shall include the 
name of the candidate who authorized such committee under 
paragraph (1). In the case of any political committee which is 
not an authorized committee, such political committee shall not 
include the name of any candidate in its name.
  (5) The name of any separate segregated fund established 
pursuant to section 316(b) shall include the name of its 
connected organization.
  (f)(1) Notwithstanding any other provision of this Act, each 
designation, statement, or report of receipts or disbursements 
made by an authorized committee of a candidate shall be filed 
with the candidate's principal campaign committee.
  (2) Each principal campaign committee shall receive all 
designations, statements, and reports required to be filed with 
it under paragraph (1) and shall compile and file such 
designations, statements, and reports in accordance with this 
Act.
  (g)(1) Designations, statements, and reports required to be 
filed under this Act by a candidate for the office of Senator, 
by the principal campaign committee of such candidate, and by 
the Republican and Democratic Senatorial Campaign Committees 
shall be filed with the Secretary of the Senate, who shall 
receive such designations, statements, and reports, as 
custodian for the Commission.
  (2) The Secretary of the Senate shall forward a copy of any 
designation, statement, or report filed with the Secretary 
under this subsection to the Commission as soon as possible 
(but no later than 2 working days) after receiving such 
designation, statement, or report.
  (3) All designations, statements, and reports required to be 
filed under this Act, except designations, statements, and 
reports filed in accordance with paragraph (1), shall be filed 
with the Commission.
  (4) The Secretary of the Senate shall make the designations, 
statements, and reports received under this subsection 
available for public inspection and copying in the same manner 
as the Commission under section 311(a)(4), and shall preserve 
such designations, statements, and reports in the same manner 
as the Commission under section 311(a)(5).
  (h)(1) Each political committee shall designate one or more 
State banks, federally chartered depository institutions, or 
depository institutions the deposits or accounts of which are 
insured by the Federal Deposit Insurance Corporation, the 
Federal Savings and Loan Insurance Corporation, or the National 
Credit Union Administration, as its campaign depository or 
depositories. Each political committee shall maintain at least 
one checking account and such other accounts as the committee 
determines at a depository designated by such committee. All 
receipts received by such committee shall be deposited in such 
accounts. No disbursements may be made (other than petty cash 
disbursements under paragraph (2)) by such committee except by 
check drawn on such accounts in accordance with this section.
  (2) A political committee may maintain a petty cash fund for 
disbursements not in excess of $100 to any person in connection 
with a single purchase or transaction. A record of all petty 
cash disbursements shall be maintained in accordance with 
subsection (c)(5).
  (i) When the treasurer of a political committee shows that 
best efforts have been used to obtain, maintain, and submit the 
information required by this Act for the political committee, 
any report or any records of such committee shall be considered 
in compliance with this Act or chapter 95 or chapter 96 of the 
Internal Revenue Code of 1954.
  (j)(1) Each candidate may, with respect to each authorized 
committee of the candidate, designate an individual who shall 
be responsible for disbursing funds in the accounts of the 
committee in the event of the death of the candidate, and may 
also designate another individual to carry out the 
responsibilities of the designated individual under this 
subsection in the event of the death or incapacity of the 
designated individual or the unwillingness of the designated 
individual to carry out the responsibilities.
  (2) In order to designate an individual under this 
subsection, the candidate shall file with the Commission a 
signed written statement (in a standardized form developed by 
the Commission) that contains the name and address of the 
individual and the name of the authorized committee for which 
the designation shall apply, and that may contain the 
candidate's instructions regarding the disbursement of the 
funds involved by the individual. At any time after filing the 
statement, the candidate may revoke the designation of an 
individual by filing with the Commission a signed written 
statement of revocation (in a standardized form developed by 
the Commission).
  (3) Upon the death of a candidate who has designated an 
individual for purposes of paragraph (1), funds in the accounts 
of each authorized committee of the candidate may be disbursed 
only under the direction and in accordance with the 
instructions of such individual, subject to the terms and 
conditions applicable to the disbursement of such funds under 
this Act or any other applicable Federal or State law (other 
than any provision of State law which authorizes any person 
other than such individual to direct the disbursement of such 
funds).
  (4) Nothing in paragraph (3) may be construed to grant any 
authority to an individual who is designated pursuant to this 
subsection other than the authority to direct the disbursement 
of funds as provided in such paragraph, or may be construed to 
affect the responsibility of the treasurer of an authorized 
committee for which funds are disbursed in accordance with such 
paragraph to file reports of the disbursements of such funds 
under section 304(a).

            registration of political committees; statements

  Sec. 303. (a) Each authorized campaign committee shall file a 
statement of organization no later than 10 days after 
designation pursuant to section 302(e)(1). Each separate 
segregated fund established under the provisions of section 
316(b) shall file a statement of organization no later than 10 
days after establishment. All other committees shall file a 
statement of organization within 10 days after becoming a 
political committee within the meaning of section 301(4).
  (b) The statement of organization of a political committee 
shall include--
          (1) the name, address, and type of committee;
          (2) the name, address, relationship, and type of any 
        connected organization or affiliated committee;
          (3) the name, address, and position of the custodian 
        of books and accounts of the committee;
          (4) the name and address of the treasurer of the 
        committee;
          (5) if the committee is authorized by a candidate, 
        the name, address, office sought, and party affiliation 
        of the candidate; [and]
          (6) a listing of all banks, safety deposit boxes, or 
        other depositories used by the committee[.]; and
          (7) in the case of an authorized committee of a 
        candidate who has designated an individual under 
        section 302(j) (including a second individual 
        designated to carry out the responsibilities of that 
        individual under such section in the event of that 
        individual's death or incapacity or unwillingness to 
        carry out the responsibilities) to disburse funds from 
        the accounts of the committee in the event of the death 
        of the candidate, a copy of the statement filed by the 
        candidate with the Commission under such section (as 
        well as a copy of any subsequent statement of 
        revocation filed by the candidate with the Commission 
        under such section).
  (c) Any change in information previously submitted in a 
statement of organization shall be reported in accordance with 
section 302(g) no later than 10 days after the date of the 
change.
  (d)(1) A political committee may terminate only when such a 
committee files a written statement, in accordance with section 
302(g), that it will no longer receive any contributions or 
make any disbursements and that such committee has no 
outstanding debts or obligations.
  (2) Nothing contained in this subsection may be construed to 
eliminate or limit the authority of the Commission to establish 
procedures for--
          (A) the determination of insolvency with respect to 
        any political committee;
          (B) the orderly liquidation of an insolvent political 
        committee, and the orderly application of its assets 
        for the reduction of outstanding debts; and
          (C) the termination of an insolvent political 
        committee after such liquidation and application of 
        assets.

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