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111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     111-77

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


 
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 21, 2009.--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. 749]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 749) 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 of the Legislation

    The purpose of H.R. 749 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. 749 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. 749 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. 749 
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. 749.

               Committee Consideration of the Legislation


                        INTRODUCTION & REFERRAL

    On January 28, 2009, Mr. Jones of North Carolina introduced 
H.R. 749, which was referred to the Committee on House 
Administration.

                                 MARKUP

    On March 25, 2009, the Committee on House Administration 
met to markup H.R. 740. With a quorum present, the Committee 
favorably reported H.R. 749, as amended, by voice vote.

             Matters Required Under the Rules of the House


                      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 
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. 749 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. 749 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. 749 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:

                                                    March 27, 2009.
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. 749, 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,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 749--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. 749 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 registering information filed by candidates.
    Based on information from the FEC, CBO estimates that 
implementing H.R. 749 would cost the FEC about $500,000 in 
2010, 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. 749 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 that any additional revenues and 
direct spending under H.R. 749 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 Theresa Gullo, Deputy 
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).

           *       *       *       *       *       *       *