H. Rept. 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 CANDIDATE114th Congress (2015-2016)
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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
* * * * * * *
TITLE III--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS
* * * * * * *
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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