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[House Report 112-628]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-628

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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 30, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Daniel E. Lungren of California, from the Committee on House 
                Administration, submitted the following

                              R E P O R T

                        [To accompany H.R. 406]

    The Committee on House Administration, to whom was referred 
the bill (H.R. 406) 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. 406 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. 406 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. 406 
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. 406.

                       Introduction and Referral

    On January 24, 2011, Congressman Walter B. Jones of North 
Carolina introduced H.R. 406, which was referred to the 
Committee on House Administration.

                                Hearings

    At a hearing of the Subcommittee on Elections on oversight 
of the Federal Election Commission held on November 3, 2011, 
the Chairman inquired as to whether current law would permit 
someone other than the campaign treasurer to dispose of 
campaign assets in the event of the candidate's death. Federal 
Election Commission Chair Cynthia Bauerly sent a letter to the 
Committee on November 18, 2011, which noted the possibility of 
state laws allowing the appointment of other campaign officers 
who might have authority over the disbursement of funds. The 
letter also noted an advisory opinion stating that a candidate 
could provide written instruction to a treasurer regarding 
disbursement of funds after the candidate's death, although 
such instruction would be subject to state law. The letter did 
not describe any existing legal provision that would give any 
federal candidate the ability to designate an individual for 
the purpose of directing the disbursement of campaign funds 
after the candidate's death.

                        Committee Consideration

    On July 19, 2012, the Committee on House Administration met 
to consider H.R. 406. 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. 406.

            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

    The bill does not provide new budget authority, new 
spending authority, new credit authority, or an increase or 
decrease in revenues or tax expenditures and a statement under 
House Rule XIII, clause 3(c)(2), and section 308(a)(1) of the 
Congressional Budget Act of 1974 is not required.

               Congressional Budget Office Cost Estimate

    In compliance with House Rule XIII, clause 3(c)(3), the 
Committee states, with respect to the bill, H.R. 406, that the 
Director of the Congressional Budget Office did not submit a 
cost estimate and comparison under section 402 of the 
Congressional Budget Act of 1974.

                    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, 
for which H.R. 406 authorizes funding.

                          Advisory on Earmarks

    In accordance with House Rule XXI, clause 9, the Committee 
states that H.R. 406 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

    In compliance with House Rule XIII, clause 3(e), the 
Committee states that H.R. 406 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 changes 
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).

           *       *       *       *       *       *       *

                                  
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