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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-602

======================================================================
 
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

                                _______
                                

 April 22, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Pennsylvania, from the Committee on House Administration, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3032]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on House Administration, to whom was referred 
the bill (H.R. 3032) 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 with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. DESIGNATION OF INDIVIDUAL AUTHORIZED TO MAKE CAMPAIGN 
                    COMMITTEE DISBURSEMENTS IN EVENT OF DEATH OF 
                    CANDIDATE.

  (a) In General.--Section 302 of the Federal Election Campaign Act of 
1971 (2 U.S.C. 432) is amended by adding at the end the following new 
subsection:
  ``(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).''.
  (b) Inclusion of Designation in Statement of Organization of 
Committee.--Section 303(b) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 433(b)) is amended--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(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).''.

SEC. 2. EFFECTIVE DATE.

  The amendments made by this Act shall apply with respect to 
authorized campaign committees which are designated under section 
302(e)(1) of the Federal Election Campaign Act of 1971 before, on, or 
after the date of the enactment of this Act.

                       Purpose of the Legislation

    The purpose of H.R. 3032 is to permit 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. H.R. 3032 ensures 
the prompt and orderly disbursement of campaign committee funds 
in the event of the death of the candidate, notwithstanding any 
conflicting provision of state law.

                       Summary of the Legislation

    H.R. 3032 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 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. The Federal Election 
Commission is directed to develop such forms as are necessary 
to implement H.R. 3032.

               Committee Consideration of the Legislation


                        INTRODUCTION & REFERRAL

    On July 12, 2007, Mr. Jones of North Carolina introduced 
H.R. 3032, which was referred to the Committee on House 
Administration.

                                 MARKUP

    On April 2, 2008, the Committee on House Administration met 
to mark up H.R. 3032. With a quorum present, the Committee 
favorably reported H.R. 3032, as amended, by voice vote.

             MATTERS REQUIRED UNDER THE RULES OF THE HOUSE

                         Committee Record Votes

    Pursuant to clause 3(b) of rule XIII of the Rules of the 
House of Representatives, the following statements are made 
concerning the votes of the Committee on House Administration 
in its consideration of the bill, H.R. 3032.

Ehlers amendment

    The first amendment adopted by voice vote was offered by 
Mr. Ehlers of Michigan, and provides that only a federal 
candidate, by signed statement, may designate an individual to 
be authorized to direct the disbursement of federal campaign 
funds from the candidate's federal political committee in the 
event of the death of the candidate.

Capuano amendment

    The second amendment, by Mr. Capuano of Massachusetts, also 
adopted by voice vote, provides that a candidate may designate 
a second individual who will be authorized to disburse funds of 
the authorized campaign committees of the candidate after the 
death of the candidate, in the event that the primary designee 
becomes unavailable or unwilling to carry out the 
responsibilities.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) rule XIII of the Rules of 
the House of Representatives, the Committee states that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                General Performance Goals and Objectives

    The Committee states, with respect to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, that 
the goal and objective of H.R. 3032 is 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. The designation and instructions provided by a 
candidate under this provision shall continue in force until 
the termination of the candidate's committee and the 
disbursement of all of the committee's funds, unless the 
candidate provides otherwise.

                        Constitutional Authority

    In compliance with clause 3(d)(1) of rule XIII, the 
Committee states that Article 1, Section 4 of the U.S. 
Constitution grants Congress the authority to make law 
governing the time, place and manner of holding federal 
elections.

                         Earmark Identification

    Pursuant to clause 9 of rule XXI, H.R. 3032 does not 
include any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9(d), 9(e), or 
9(f) of rule XXI.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. H.R. 3032 is intended to preempt all state laws 
to the contrary.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, the following estimate and comparison 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act of 1974:

                                                     April 11, 2008
Hon. Robert A. Brady,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3032, 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 a candidate.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 3032--A bill to amend the Federal Election Campaign Act of 1971 to 
        permit 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

    H.R. 3032 would amend federal law to allow any candidate 
for federal office the option of granting an individual the 
responsibility of disbursing any campaign funds in the event of 
the candidate's death. Under current law, that role lies with 
the campaign treasurer. The Federal Election Commission (FEC) 
would be responsible for regulating the process and registering 
the information.
    Based on information from the FEC and subject to the 
availability of appropriated funds, CBO estimates that 
implementing H.R. 3032 would cost the FEC about $500,000 in 
2009. That amount includes one-time computer-related expenses 
as well as the cost of formulating new regulations. In future 
years, the legislation would increase general administrative 
costs of the FEC, but we estimate those costs would not be 
significant.
    Enacting H.R. 3032 could affect federal revenues by 
increasing collections of fines for violations of campaign 
finance law. Such collections are recorded in the budget as 
revenues and, in certain cases, may be spent without further 
appropriation. CBO estimates any additional revenues and direct 
spending under H.R. 3032 would be insignificant because of the 
small number of anticipated violations.
    The legislation 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 Peter H. Fontaine, 
Assistant Director for Budget Analysis.

         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, existing law in which no change is 
proposed is shown in roman):

                 FEDERAL ELECTION CAMPAIGN ACT OF 1971




           *       *       *       *       *       *       *
TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

           *       *       *       *       *       *       *



                  ORGANIZATION OF POLITICAL COMMITTEES

  Sec. 302. (a) * * *

           *       *       *       *       *       *       *

  (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) * * *
  (b) The statement of organization of a political committee 
shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (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).

           *       *       *       *       *       *       *