Order Code RL31036
CRS Report for Congress
Received through the CRS Web
Campaign Finance Bills in the 107th Congress:
Comparison of S. 27 (McCain-Feingold), H.R. 2356
(Shays-Meehan), H.R. 2360 (Ney-Wynn),
and Current Law
Updated January 18, 2002
Joseph E. Cantor
Specialist in American National Government
Government and Finance Division
L. Paige Whitaker
Legislative Attorney
American Law Division
Congressional Research Service ˜ The Library of Congress

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Campaign Finance Bills in the 107th Congress: Comparison
of S. 27 (McCain-Feingold), H.R. 2356 (Shays-Meehan),
H.R. 2360 (Ney-Wynn), and Current Law
Summary
S. 27 (McCain-Feingold), the Bipartisan Campaign Reform Act of 2001, was introduced
January 22, 2001 in a form similar to prior versions of the last two Congresses. On April 2,
after a two-week debate and adoption of 22 amendments, the Senate passed S. 27 by a vote
of 59-41. That measure’s companion Shays-Meehan bill, the Bipartisan Campaign Finance
Reform Act of 2001, was initially introduced as H.R. 380 in a form similar to House-passed
versions of the prior two Congresses; on June 28, the bill was modified and offered as H.R.
2356. H.R. 2360 (Ney-Wynn), the Campaign Finance Reform and Grassroots Citizen
Participation Act of 2001, was introduced and ordered reported favorably by the House
Administration Committee on June 28. (Shays-Meehan was ordered reported unfavorably
at the same time.) The two primary features of the bills are restrictions on party soft money
and issue advocacy.
Party soft money. The Shays-Meehan and McCain-Feingold bills would ban the
raising of soft money by national parties and federal candidates or officials, and would restrict
soft money spending by state parties on what the bills define as federal election activities. The
bills have been changed from earlier versions to allow restricted use of soft money for federal
election activities by state and local parties. The Ney-Wynn bill would also ban soft money
raising and spending by national parties for federal election activities, as it defines them.
However, it would allow continued soft money use for generic party activities that do not
refer to federal candidates, and for overhead and fundraising costs, subject to a $75,000
annual limit per donor. In addition, the Ney-Wynn bill would not curb the use of state and
local party soft money.
Issue advocacy. S. 27 and H.R. 2356 would create a new term in federal election
law, “electioneering communication,” thereby regulating political advertisements that “refer”
to a clearly identified federal candidate and are broadcast within 30 days of a primary or 60
days of a general election. While S. 27 further specifies that the communication be made to
an audience that “includes” prospective voters in the election, its House companion would
require that, except for presidential elections, the communication be “targeted to the relevant
electorate.” Generally, disclosure would be required for disbursements over $10,000 for such
communications, along with the identity of donors of $1,000 or more, and union and certain
corporate funds would be prohibited from being used to finance them. The Ney-Wynn bill
(H.R. 2360) would require disclosure of spending on broadcast communications made within
120 days of a federal election that “mention” a clearly identified federal candidate (by name,
image or likeness) or, for non-broadcast ads, that “refer to or depict” such a candidate, are
targeted to the relevant electorate, and involve total spending of over $50,000 in a year. H.R.
2360 would require disclosure of amounts spent, but not of sources of funds.
All the bills would raise certain hard money contribution limits. Shays-Meehan and
McCain-Feingold would adjust contribution limits for opponents of Senate candidates who
spend large amounts of personal wealth. The latter two would also, among other provisions,
change broadcast rules applying to the lowest unit rate (LUR) for political advertisements and
add enforcement and disclosure provisions to the Federal Election Campaign Act (FECA).

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Contents
Table 1. Comparative Highlights of Shays-Meehan and Ney-Wynn Bills . . . . . . . . . . . . 2
Table 2. Key Differences between McCain-Feingold and Shays-Meehan Bills . . . . . . . . . 4
Table 3. Comparison of McCain-Feingold, Shays-Meehan, and Ney-Wynn Bills,
and Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Hard Money Sources: Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Hard Money Sources: Political Action Committees (PACs) . . . . . . . . . . . . . . . . . . 7
Hard Money Sources: Political Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Hard Money Sources: Candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Independent Expenditures (Hard Money) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Coordination (Hard and Soft Money) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Soft Money: Party . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Issue Advocacy (Soft Money) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
FEC Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
FEC Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Foreign Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Notes to Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Common abbreviations in tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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Campaign Finance Bills in the 107th Congress:
Comparison of S. 27 (McCain-Feingold),
H.R. 2356 (Shays-Meehan), H.R. 2360 (Ney-Wynn),
and Current Law
This report summarizes and compares three major campaign finance reform bills before
the 107th Congress and current law (in most cases, the Federal Election Campaign Act, or
FECA, 2 U.S.C. § 431 et seq.). The three bills are S. 27 (McCain-Feingold), the Bipartisan
Campaign Reform Act of 2001, as amended and passed by the Senate on April 2, 2001; its
House companion bill, H.R. 2356 (Shays-Meehan), the Bipartisan Campaign Finance Reform
Act of 2001, a modified version of an earlier bill in this Congress (H.R. 380); and H.R. 2360
(Ney-Wynn), the Campaign Finance Reform and Grassroots Citizen Participation Act of
2001.
Much of the ongoing campaign finance debate revolves around the issues of so-called
hard and soft money. In general, the term “hard money” is used to refer to funds raised and
spent according to the limits, prohibitions, and disclosure requirements of federal election law.
By contrast, “soft money” is used to describe funds raised and spent outside the federal
election regulatory framework, but which may have at least an indirect impact on federal
elections1
The report consists of three tables, organized according to major topics covered and
arranged as side-by-side comparisons. The first two tables use an abbreviated format to
facilitate a quicker understanding of key differences between pairs of bills, with fuller
explanations offered in the third table. Table 1 compares highlights of the Shays-Meehan and
Ney-Wynn bills, while table 2 presents key differences between the McCain-Feingold and
Shays-Meehan bills. Table 3 is the most detailed treatment, offering a comparison of all three
bills and relevant current law. For S. 27, amendments adopted on the Senate floor are
summarized in italics, with citations to the amendments identified in table notes. Table 3 also
provides applicable bill section numbers,2 and, for existing law, U.S. Code (U.S.C.) and Code
of Federal Regulations (C.F.R.) citations and abbreviated court decision summaries. In some
cases, broken lines separate a concept or provision that has several parts or which is modified
in some way by related concepts or provisions.
1 For further discussion of hard and soft money, see CRS Report 97-91, Soft and Hard
Money in Contemporary Elections: What Federal Law Does and Does Not Regulate, by
Joseph E. Cantor.
2 In cases where the provisions are the same for the bills, those cells are joined; the first
section number refers to S. 27 and the second to H.R. 2356.

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CRS-2
Table 1. Comparative Highlights of Shays-Meehan and Ney-Wynn Bills
Shays-Meehan (H.R. 2356)
Ney-Wynn (H.R. 2360)
Hard Money Contribution Limits
Individuals to candidates:
$1,000 - House; $2,000 - President and Senate
$1,000 - all federal candidates (current limit)
Individuals to national parties:
$25,000 per year (now $20,000)
$30,000 per year
Individuals to state parties:
$10,000 per year (now $5,000)
Same as H.R. 2356
Individual aggregate annual limit:
$37,500 per year (now $25,000)
$37,500 per year, exempts amounts to national
parties
From PACs to state parties:
$5,000 per year (no change)
$10,000 per year
From PACs to national parties:
$15,000 per year (no change)
$30,000 per year
From parties to Senate candidates:
$35,000 per year (now $17,500)
$17,500 (no change)
Future indexing for inflation:
Only for individual limits to candidates and
For all contribution limits
national parties, and aggregate annual total, and on
party donations to Senate candidates
Party Soft Money
National parties:
Bans all soft money
(1) Bans soft money for “federal election
activity”
(2) Limits donations for non-federal election
activities to $75,000 a year
Federal election activity defined:
Voter registration drives in last 120 days of federal
GOTV, voter registration drives in last 120 days
election; voter ID, GOTV, and generic activity
of a federal election, and public communications
when federal candidate is on ballot; public
that mention federal candidates; and all
communications that refer to federal candidates;
broadcast communications
and salary of state party workers who spend 25% of
time or more in connection with federal elections
Non-federal election activity:
Exclusively state and local election-related activity
Generic, non-candidate-specific party activity;
that is not a “federal election activity”
party overhead and fundraising costs
State and local parties
Generally bans use of soft money for federal
No provision
election activities, but allows some soft money to
fund GOTV, voter ID, voter registration, and
generic activities that do not mention federal
candidates, subject to 50-50 hard-soft money
allocation ratio, a $10,000 per donor, per
committee limit, no party transfers for such
accounts, and no fundraising in name of national
party or federal candidates and officials

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CRS-3
Shays-Meehan (H.R. 2356)
Ney-Wynn (H.R. 2360)
Federal candidates and officeholders
Prohibited from raising soft money in connection
No provision
with federal elections and money beyond federal
limits and prohibitions in non-federal elections
Tax-exempt groups
No provision
Bans parties from raising money for or giving to
501(c)(4)s involved in federal elections and 527s
that are not FECA-political committees
Issue Advocacy
Definition of communication to be regulated:
“Electioneering communication” – broadcast,
- Broadcast, cable, or satellite ad, made within
cable, or satellite ad that “refers” to a clearly
120 days of a federal election, which “mentions”
identified federal candidate, made within 60 days
a clearly identified federal candidate
of general election or 30 days of a primary, and
- Non-broadcast communication made within
(for non-presidential elections) is targeted to
120 days of a federal election, which “refers to
relevant electorate (i.e., received by 50,000 or more
or depicts” a clearly identified federal candidate,
persons in state, for Senate elections, or district, for
that involves aggregate spending of over
House elections)
$50,000, and is “targeted to relevant electorate”
(if over10% of intended recipients are part of
electorate or if over 10% of electorate receives
communication)
Required disclosure:
- For electioneering communications, within 24
- For all broadcast, cable, or satellite
hours of being made, once over $10,000 aggregate,
communications, within 24 hours
and in $10,000 increments
- For all non-broadcast targeted mass
communications, within 24 hours, once over
$50,000, and in $50,000 increments
Contents of disclosure:
- Identity of spender
- Identity of spender
- Amount of all disbursements over $200 and
- Amount of all disbursements (for targeted mass
identity of recipients
communications, only over-$200 amounts)
- Amount and identity of donors of $1,000 or more
- Identity of recipients of over-$200 targeted
(to organization, or to segregated account with
mass communications
only donations from individuals who are citizens,
- Text of communications
U.S. nationals, or green-card holders)

Prohibited communications:
By unions and corporations using treasury money,
No provision
including for-profit and non-profit corporations
(e.g., 501(c)(4)s and 527s)
Other provisions
Changes lowest unit rate for broadcast ads
No provision
Raises contribution limits for Senate candidates
No provision
opposed by large sums of candidates’ personal
funds
Adds soft money to foreign national money ban
No provision
and to ban fundraising in government buildings
Adds disclosure and enforcement provisions
No provision

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CRS-4
Table 2. Key Differences between McCain-Feingold and Shays-
Meehan Bills
McCain-Feingold (S. 27)
Shays-Meehan (H.R. 2356)
Hard Money Contribution Limits
Raises limit to $2,000 per candidate, per election
Raises limit to $2,000 in Presidential and Senate
in all federal elections
races, but retains $1,000 limit in House races
Party Soft Money
Allowance for soft money for federal election
activity by state and local parties:
- Communication may make no reference to a
- Communication may make no reference to a
federal candidate
federal candidate
- Based on current allocation formulae
- Requires 50-50 hard-soft money allocation
- No person may donate over $10,000 a year to a
formula
committee for such activities
- No person (or any entity established thereby)
(originated as Levin amendment)
may donate over $10,000 a year to a committee
for such activities
- May only use funds raised by the state, district,
or local party expressly for such purposes and
include no funds transferred from other party
committees
- No funds may be solicited, received, directed,
transferred, or spent in name of national parties,
federal candidates/officials, or by joint
fundraising party committees
- No payment for broadcast, cable, or satellite
(unless communication refers solely to state/local
candidates)
No provision
Federal candidates/officials may raise money for
tax-exempt orgs. engaged primarily in voter
registration and GOTV, subject to limit of
$10,000 per donor
No provision
No restriction on fundraising by federal
candidates or officials to influence state
reapportionment decisions
Transition rules for national party disposal of
soft money:
- Parties may spend unrestricted soft money from
No soft money use after 30 days after enactment
effective date to 90 days thereafter
- Until March 31, 2002, national parties may
transfer soft money to state or local parties or to
§501(c) or §527 tax-exempt organizations
- At any time after effective date, national parties
may use funds for construction or purchase of
party office building or facility
Issue Advocacy
Defines “electioneering communication” as one
Defines “electioneering communication” as one
made to an audience that “includes members of
that is “targeted to the relevant electorate” (i.e.,
the electorate” for such election
communication is received by 50,000 or more
persons in state or district)

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CRS-5
McCain-Feingold (S. 27)
Shays-Meehan (H.R. 2356)
Exempts §501(c)(4) or §527 tax-exempt corps.
New definition requires all communications to be
from corporate prohibition, if funds are solely
targeted to the relevant electorate (in non-
donated by individuals who are citizens or
presidential races) to meet “electioneering
permanent resident aliens, unless communication
communication” criteria, thus removing
is “targeted,” i.e., it was distributed from
exemption from corporate prohibition for
broadcast, cable, or satellite service whose
§501(c)(4) or §527 tax-exempt corporations
audience “consists primarily” of residents of state
in which candidate seeks election
Advertising
Sets lowest unit rate by comparing rates for same
Sets lowest unit rate by comparing rates for same
amount of time and period with prior 365 days
amount of time and period with prior 180 days
Foreign Money
No provision
Clarifies that ban on money from foreign
nationals does not include U.S. nationals
Miscellaneous
Joint fundraising committees:
Bans joint fundraising committees between
No provision
federal candidates and party committees
Contributions by minors:
Bans contributions and donations by individuals
No provision
17 years of age and younger
Candidate-solicited funds for intermediaries and
Counts contributions raised by candidate to
conduits:
support his/her election and arranged through
No provision
intermediary as contribution to candidate
FEC regulations to counter evasion:
Requires new FEC regulations to prohibit
No provision
evasions and circumventions of FECA
Expedited and judicial review:
Provides for expedited review to the U.S. District
- Provides for expedited review to the U.S.
Court for D.C. for declaratory judgment and
District Court for D.C. for declaratory judgment
injunctive relief; provides direct appeal to the
and injunctive relief, on constitutional grounds,
U.S. Supreme Court from any final order or
with direct appeal to U.S. Supreme Court from
judgment; and provides for expedited
any final order or judgment; and expedited
consideration by both courts
consideration by both courts
- Provides if any aggrieved person brings action
for declaratory or injunctive relief, challenging
constitutionality and naming U.S. as defendant,
within 90 days of enactment: (a) action shall be
heard by three-judge court in U.S. District Court
for D.C.; (b) copy of complaint provided to Clerk
of the House and Secretary of the Senate; (c) final
decision only reviewable by direct appeal to U.S.
Supreme Court; and (d) expedited consideration
provided
- Provides that in action challenging
constitutionality, any Member of Congress has
right to intervene

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CRS-6
Table 3. Comparison of McCain-Feingold, Shays-Meehan, and Ney-Wynn Bills, and Current Law
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Hard Money Sources: Individuals
Contributions to candidates:
$1,000 per candidate, per election; not
Raises limit to $2,000 per candidate,
Raises limit to $2,000 for Presidential
Indexes limit for inflation
indexed [2 USC §441a(a)(1)(A)]
per election, indexed for inflation1
and Senate elections; retains $1,000
[Sec. 205]
[Sec. 308]
limit in House elections; indexes both
for inflation [Sec. 308]
Contributions to state party
committee:
$5,000 per year to federal account,
Raises limit to $10,000 per year [Secs. 102, 102]
Raises limit to $10,000 per year
not indexed
[Sec. 202]
[2 USC §441a(a)(1)(C)]
Indexes limit [Sec. 205]
Contributions to national party
committee:
$20,000 per year to federal acct., not
Raises limit to $25,000 per year, indexed for inflation1 [Secs. 308, 308]
Raises limit to $30,000 per year
indexed [2 USC § 441a(a)(1)(B)]
[Sec. 201]
Indexes limit [Sec. 205]
Contributions to PACs:
$5,000 per year, not indexed
No provision
No provision
Indexes limit [Sec. 205]
[2 USC§441a(a)(1)(C)]
Aggregate contributions:
- Raises limit to $37,500 per year
$25,000 per year to PACs, parties,
Raises limit to $37,500 per yr., indexed for inflation1, 2 [Secs. 308, 308]
[Sec. 201]
and candidates, not indexed
- Indexes limit [Sec. 205]
[2 USC §441a(a)(3)]
- Exempts contributions to natl.
parties from aggregate limit
[Sec. 203]

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CRS-7
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Hard Money Sources: Political Action Committees (PACs)*
Contributions to candidates:
$5,000 per candidate, per election; not
No provision
No provision
Indexes limit [Sec. 205]
indexed [2 USC §441a(a)(2)(A)]
Contributions to state party cttee.:
$5,000 per year to federal account,
No provision
No provision
Raises limit to $10,000 per year
not indexed [2 USC §441a(a)(2)(C)]
[Sec. 202]
Indexes limit [Sec. 205]
Contributions to natl. party cttee.:
$15,000 per year to federal acct., not
No provision
No provision
Raises limit to $30,000 per year
indexed [2 USC§441a(a)(2)(B)]
[Sec. 201]
Indexes limit [Sec. 205]
Contributions to other PACs:
$5,000 per year, not indexed
No provision
No provision
Indexes limit [Sec. 205]
[2 USC§441a(a)(2)(C)]
Hard Money Sources: Political Parties*
Contributions to candidates:
$5,000 per candidate, per election; not
No provision
No provision
Indexes limit [Sec. 205]
indexed [2 USC §441a(a)(2)(A)]
Special limit for Senate nominees:
$17,500 in election year, by natl. and
Raises limit to $35,000 in year of election, indexed for inflation1
Indexes limit [Sec. 205]
senatorial party cttees. combined, not
[Secs. 308, 308]
indexed [2 USC §441a(h)]

* PAC and party limits are based on multicandidate political committee status, i.e., the committee has been in existence for at least six months, has received contributions
from at least 50 persons, and, except for state or local party committees, has contributed to at least five federal candidates [2 USC §441a(a)(4)].

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CRS-8
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Contributions to PACs/other
committees:
No provision
No provision
Indexes limit [Sec. 205]
$5,000 per year, not indexed
[2 USC§441a(a)(2)(C)]
Grassroots volunteer materials:
State/local party costs of producing/
No provision
No provision
Extends exemption to national
distributing grassroots materials for
party committees [Sec. 204]
volunteer activities are exempt from
contribution and expenditure
definition [2 USC§431(8)(B)(X),
§431(9)(B)(viii)]
Hard Money Sources: Candidates
Personal use of campaign funds:
Bans candidate personal use
Codifies FEC regulations on permissible uses for campaign funds; retains ban on
No provision
[2 USC §439a]
personal use [Secs. 301, 301]
Regulations enumerate personal uses
[11 CFR§113.1(g)]
Candidate loans to campaign:
No rules regarding amount of
Limits repayment of loans to $250,000, from amounts contributed after election3
No provision
candidate loans that can be paid from
[Secs. 304, 304]
post-election contributions

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CRS-9
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Wealthy candidates:
(In Senate elections only:)
Contribution limits are the same for
- Raises limits on individual and party support for Senate candidate whose
No provision
all candidates, regardless of whether
opponent exceeds designated level of personal campaign funding
opponents spend large amounts from
- Creates threshold of $150,000 + 4¢ times no. eligible voters in state
personal funds
- If “opposition personal funds amount” (personal spending of candidate minus
[2 USC § 441a(a)(1)(A)]
that of opponent) exceeds threshold by: (a) 2-4 times, then limit on individual
contributions to opponent is tripled; (b) 4-10 times, then limit on individual
In Buckley v. Valeo (424 U.S. 1, 51-
contributions to opponent is raised 6-fold; (c) 10 times, then limit on individual
54 (1976)), Supreme Court struck
contributions to opponent is raised 6-fold and lifts limit on party coordinated
down limits on spending from
expenditures for opponent
personal funds by candidates
- Aggregate individual limit would be raised to extent of higher contribution
limits
- Limits would be raised only to extent of 110% of total “opposition personal
funds amount”3 [Secs. 304, 304]
- In calculating “opponent personal funds amount,” subtracts “gross receipts
advantage” of candidate opposed by wealthy candidate (50% of gross receipts of
candidate minus 50% of gross receipts of wealthy opponent, as of Jun. 30 and
Dec. 31 of prior year)4 [Secs. 318, 317]

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CRS-10
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Independent Expenditures (Hard Money)
Definition:
An expenditure by a person expressly
Defines independent expenditure as an
Defines independent expenditure as an
No provision
advocating election or defeat of a
expenditure by a person that expressly
expenditure by a person for a
clearly identified candidate, made
advocates election or defeat of a clearly
communication that is express
without cooperation or consultation
identified candidate, and that is not a
advocacy, and that is not made in
with candidate (or authorized
coordinated activity with a candidate,
concert or cooperation with, at request
committee or agent), and not made in
agent, or someone who has engaged in
or suggestion of, or pursuant to any
concert with, or at request or
coordinated activity with the candidate
particular or general understanding with
suggestion of, any candidate (or agent
[Sec. 211]
candidate, party, or agent
or cttee.) [2 USC §431(17)]
[Sec. 211]
Special disclosure rules:
Requires 24-hour notice of
Adds requirement for a 48-hour notice of independent expenditures of $10,000 or
No provision
independent expenditures of $1,000 or
more, up to 20 days before an election [Secs. 212, 212]
more in last 20 days of election, up to
24 hours prior to election
[2 USC § 434(c)(2)]

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CRS-11
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Party spending for party
candidates:
Parties may make expenditures in
Prohibits parties from making both independent and coordinated expenditures for a
No provision
connection with a general election of a
general election candidate [Secs. 213, 213]
federal candidate’s campaign, subject
to limits, also known as the
“coordinated party expenditure limits”
[2 USC §441a(d)]
In Colorado Republican Federal
Campaign Committee v. FEC
(Colorado I) (518 U.S. 604 (1996)),
Supreme Court ruled that, as applied
to the Colorado Republican Party, the
coordinated party expenditure limit (2
USC §441a(d)) was unconstitutional,
and that parties can make independent
expenditures on behalf of candidates;
in Colorado II, (No. 00-191 slip op.
(June 25, 2001)), the Court upheld the
constitutionality of the coordinated
party expenditure limit

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CRS-12
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Coordination (Hard and Soft Money)
Definition:
Statute: FECA does not define
Statute: Defines “coordinated expenditure or other disbursement” as a payment
No provision
“coordination” or “coordinated
made in concert or cooperation with, or at request or suggestion of, or pursuant
activity” per se
to any particular or general understanding with a candidate or party5
[Secs. 214, 214]
FEC Regulations: New FEC
FEC Regulations:
FEC Regulations:
No provision
coordination rules define “coordinated
- Repeals new FEC rules
- Repeals new FEC rules
general public political
- Directs FEC to promulgate new
- Directs FEC to promulgate new
communications” as coordinated
regulations within 90 days
regulations within 90 days
communications including clearly
- Specifies new rules will not require
- Specifies new rules will not require
identified candidates, paid for by
explicit collaboration or agreement to
explicit collaboration or agreement to
persons other than candidates or
establish coordination
establish coordination
parties, including express or issue
- Specifies rules will address issues of:
- Specifies rules will address issues of:
advocacy; communication will be
(1) republication of campaign
(1) republication of campaign material;
considered coordinated if: it is made at
material; (2) common vendors; (3)
(2) common vendors; (3) prior
request or suggestion of candidate or
prior employment status; (4)
employment status; and (4) substantial
party, candidate or party had control
substantial discussion with candidate/
discussion with candidate or party
or substantial decision-making
party; and (5) impact of coordinating
[Sec. 214]
authority, or candidate or party
internal communications on “federal
engaged in substantial discussion or
election activities”5 [Sec. 214]
negotiation with those involved in
creating, producing, distributing, or
paying for the communication
[11 CFR §100.23 (2001)]

---

CRS-13
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Consequences of coordination:

- Expenditures made in cooperation,
Treats an “electioneering
Treats an “electioneering
No provision
consultation, or concert with, or at the
communication” that is coordinated
communication” that is coordinated with
request or suggestion of, a candidate
with a candidate, agent, or party as a
a candidate, agent, or party as a
or agents shall be considered a
contribution to and expenditure by
contribution to and expenditure by
contribution to candidate [2 USC
candidate or party [Sec. 202]
candidate or party [Sec. 202]
§441a(a)(7)(B)(i)]
Treats a coordinated expenditure or
- Financing of dissemination,
disbursement made in connection with a
distribution, or republication, in whole
candidate’s campaign as a contribution
or part, of any broadcast or materials
to and expenditure by that candidate,
prepared by candidate or agents shall
and treats a coordinated expenditure or
be considered an expenditure subject
disbursement made in connection with a
to relevant limits
party committee as a contribution
[2 USC§441a(a)(7)(B)(ii)]
to/expenditure by party
(For discussion of express advocacy,
Includes in definition of
Includes in definition of contribution:
see “Soft Money: Party” and “Issue
“contribution”: any coordinated
any coordinated expenditure or other
Advocacy (Soft Money)” sections)
expenditures or other disbursements
disbursement made in connection with
made in connection with candidate’s
candidate’s campaign, and any
campaign, and any expenditure or
coordinated expenditure or disbursement
disbursement made in coordination
made in coordination with party,
with party, regardless of whether
regardless of whether communication
communication contains express
contains express advocacy [Sec. 214]
advocacy5 [Sec. 214]

---

CRS-14
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Soft Money: Party
National party committees:
May raise soft money (i.e., generally,
Prohibits a national party committee, including entities directly or indirectly
For federal election activities:
funds from sources or in amounts
established, financed, maintained, or controlled by such committee or agent acting
prohibits national political party
banned under federal election law), so
on its behalf, from soliciting, receiving, directing, transferring, or spending soft
committees, incl. officers/agents
long as funds are deposited in non-
money [Secs. 101, 101]
acting on their behalf and entities
federal accounts, and may distribute
they directly/indirectly establish,
funds, in accord with FEC allocation
maintain, or control, from
formulae [11 CFR §106.5]
soliciting, receiving, directing, or
transferring soft money
For non-federal election
activities: imposes a limit of
$75,000 per calendar year on the
amount of soft money any person
may donate or transfer to a
national party cttee. [Sec. 101]
State and local party committees:
In general, bans soft money spending for a “federal election activity” by state/local
No provision
May spend soft money on the state
party committees, including an entity directly or indirectly established, financed,
portion of mixed (federal/state)
maintained, or controlled by a state or local party committee (and agent acting on
activities, according to detailed
its behalf), or by:
allocation requirements
[11 CFR §106.5]
- an entity directly or indirectly
- an association or group of state/local
established, financed, maintained, or
candidates or officials
controlled by one or more state/local
candidates or officials
But permits authorized campaign cttee.
Prohibits state/local candidates using
of state/local candidate to raise and
soft money for public communications
spend funds under state law if not for
that promote/attack a clearly identified
“federal election activity” that “refers”
federal candidate, but exempts
to clearly identified federal candidate
communications referring to a federal
cand. who is also a state/local cand.

---

CRS-15
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
But allows a state, district, or local
But allows state, district, or local party
party committee to use funds raised
cttee. to use some funds raised under
under state law for allocable share (at
state law for an allocable share (at a 50-
current ratios) of voter registration
50 hard-soft money ratio) of voter
drives in last 120 days of a federal
registration drives in last 120 days of a
election, voter ID, GOTV, & generic
federal election, voter ID, GOTV drives,
activity, if it: (1) does not refer to a
and generic activity, if it: (1) does not
federal candidate; and (2) takes no
refer to a federal candidate; (2) does not
donations over $10,000 a year for
pay for a broadcast, cable, or satellite
such activity6 [Sec. 101]
communication (unless it refers solely to
state/local candidates); (3) takes no
more than $10,000 a year from any
person (incl. entity person establishes,
finances, maintains, or controls) for
such activity; and (4) uses only funds
raised by that party cttee. expressly for
such purposes, with no transfers from
other party cttees. (and agents/officers
acting on their behalf or entity they
directly/indirectly establish, finance,
maintain, or control)
Prohibits funds for these accounts from
being solicited, received, directed,
transferred, or spent in name of natl.
party, fed. candidate/official, or joint
fundraising activities by two or more
party committees [Sec. 101]

---

CRS-16
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Federal or non-federal activity:
“Federal election activity” defined to include: (1) voter registration drives in last
“Federal election activity”
FEC allctn. rules offer guidance in
120 days of a federal election; (2) voter identification, GOTV drives, and generic
defined to include: (1) voter
determining if activity is fed. or non-
activity in connection with an election in which a federal candidate is on the ballot;
registration drives in the last 120
fed. elctn. related, by such means as
(3) “public communications” that refer to a clearly identified federal candidate and
days of a federal election, unless
“ballot composition” (for
promote, support, attack, or oppose a candidate for that office (regardless of
for generic activity; (2) voter
administration and generic voter
whether they expressly advocate a vote for or against); or (4) services by a state or
identification or GOTV drives in
drives), “time and space” allotted in a
local party employee who spends at least 25% of paid time in a month on activities
an election with at least one federal
communication, etc. [11 CFR §106.1]
in connection with a federal election [Secs. 101, 101]
candidate on the ballot, unless for
generic activity; (3) any public
Definition of activity generally
communication that refers to or
triggering application of federal
depicts a clearly identified federal
elctn. law – Express advocacy: Sup.
candidate and that supports,
Court, in Buckley v. Valeo (424 U.S.
promotes, attacks, or opposes a
1, 44 (1976)) and FEC v. Mass.
candidate for that office, regardless
Citizens for Life (479 U.S. 238, 249
of whether it expressly advocates a
(1986)), generally construed fed.
vote for or against a candidate; or
campaign law to reach only funds
(4) any public communication
used for indpt. communications by
made by broadcast, cable, or
non-political cttees. that incl. express
satellite
words advocating elctn./defeat of
clearly identified cand.; in lower
Exempts costs of administering
courts, prevailing view is, generally,
and soliciting funds for national
that regulation of such
party committees, if funds are
communications that do not contain
designated exclusively for such
specific express advocacy words (or
uses and are segregated
“magic words,” e.g., “vote for,”
accordingly [Sec. 101]
“defeat”) is not constitutional; but
see,11 CFR §106.5(b), subjecting
natl. party disbursements for non-
express advocacy communications to
allctn. formulae, requiring specific %
of hard money, §104.9(c), requiring
reporting of natl. party soft money,
and §106.5(b), (c), & (d), requiring
party allctn. of generic voter drive
costs

---

CRS-17
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
FEC v. Furgatch (807 F.2d 857 (9th
Provides alternative definition of
No provision
No provision
Cir. 1987), cert. denied, 484 U.S. 850
“public communication” (third type of
(1987)), which has emerged as a
“federal election activity”) in the
minority view, generally held that a
event that the first definition is ruled
communication will be considered
unconstitutional, based on FEC v.
issue advocacy if its message is
Furgatch (807 F.2d 857 (9th Cir.
unmistakable and unambiguous,
1987), cert. denied, 484 U.S. 850
suggestive of only one plausible
(1987)) (i.e., communication
meaning; if it presents a clear plea for
promoting, supporting, attacking, or
action; and it is clear what action is
opposing a candidate, regardless of
advocated, i.e., speech cannot be
whether it advocates a vote for or
express advocacy when reasonable
against a candidate, and is suggestive
minds could differ as to whether it
of no plausible meaning other than an
encourages a vote for or against a
exhortation to vote for or against a
candidate or encourages the reader to
candidate)9 [Sec. 101]
take some other action
Public political communications:
Defined by new regulations as those
“Public communications” defined as those made by broadcast, cable, satellite,
“Public communications” defined
made through broadcast (including
newspaper, magazine, outdoor advertising, mass mailing (over 500 identical or
as communications by broadcast,
cable), newspaper, magazine, outdoor
substantially similar pieces mailed within 30 days of each other), or phone bank
cable, satellite, newspaper,
advertising facility, mailing or any
(over 500 identical or substantially similar calls made within 30 days of each
magazine, outdoor advertising
electronic medium, including Internet
other) [Secs. 101, 101]
facility, or direct mail [Sec. 101]
or Web site, with intended audience of
over 100 people
[11 CFR §100.23(e)(1) 2001]
Generic activity:
No provision
No provision
Defines generic campaign activity as
Defines generic activity as activity
one that promotes a party but not a
that does not mention, depict, or
federal or non-federal candidate
otherwise promote a clearly
[Sec. 101]
identified fed. candidate
[Sec. 101]

---

CRS-18
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
State/local parties may spend money
Allows state parties to spend soft money on activities exclusively devoted to non-
No provision
on federal and non-federal races, if
federal elections [Secs. 101, 101]
they allocate funds between hard and
soft money [11 CFR §106.5]
Fundraising costs:
Parties may allocate costs
Prohibits party committees from using soft money to raise funds for use at least in
No provision
[11 CFR §106.5(f)]
part on “federal election activities” [Secs. 101, 101]
Support for tax-exempt groups:
No restrictions on parties’ ability to
Prohibits party committees or agents
Prohibits party committees or agents
No provision
support tax-exempt groups
from raising money for, or giving to,
from raising money for, or giving to, an
Internal Revenue Code §501(c) or
Internal Revenue Code §501(c) tax-
§527 tax-exempt organizations
exempt org. that makes disbursements in
[Sec. 101]
connection with a fed. election (incl. a
“federal election activity”) or a §527
tax-exempt org. (if not a fed. political
cttee.) [Sec. 101]
Federal candidates/officeholders:
- Role in raising soft money:
May participate in fundraisers without
Prohibits federal candidates, officeholders, agents, or entities they directly or
No provision
restriction
indirectly establish, maintain, finance, or control from raising soft money in
connection with a federal election (incl. any “federal election activity”) or any
money from sources beyond fed. limits and prohibitions in non-federal elections
ban does not apply to state/local
ban does not apply to state or local
candidates for activity allowed under
candidates for activity allowed under
state law and is not for a “federal
state law and refers only to the
election activity” that refers to clearly
state/local candidate or opponents
identified federal candidate [Sec. 101]
[Sec. 101]

---

CRS-19
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Federal candidates/officeholders:
- Role in tax-exempt fundraising:
Allows fed. candidates/officials to raise
No restrictions
No provision
money for tax-exempt orgs. primarily
No provision
engaged in voter registration/GOTV,
subject to $10,000 per donor limit (i.e.,
bill’s limit on individual contributions to
state parties) [Sec. 101]
Federal candidates/officeholders:
- Role in reapportionment activity:
No restrictions
No provision
Bill does not restrict fundraising by fed.
No provision
candidates/officials to influence state
reapportionment decisions [Sec. 101]
Disclosure by national parties:
Regulations require disclosure of all
Codifies FEC regulations on disclosure of all activity–federal and non-federal7
No provision
receipts and disbursements
[Secs. 103, 103]
[11 CFR §104.8, 104.9]
State/local party disclosure:
Required for activity by federal
Requires disclosure of “federal election activities” by state and local party
No provision
accounts only [2 USC § 434]
committees (including entities directly or indirectly established, financed,
All mixed activities must be funded
maintained, or controlled by either state/local party committee and agent or by
through federal accounts
state or local candidates and officials)
[11 CFR § 106.5(a)]
except by authorized campaign
Disclosure must include amounts raised
committees of state/local candidates,
and spent by special soft money
raising and spending funds under state
accounts, allowed to be used for
law, if not for “federal elctn. activity”
“federal election activities” [Sec. 103]
that “refers” to a clearly identified
federal candidate [Sec. 103]
Building funds:
No provision
Donations to national/state party
Ends building fund exemption [Secs. 103, 103]
building funds are exempt
[2 USC§431(8)(B)(viii)]

---

CRS-20
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Issue Advocacy (Soft Money)
Definition of activity generally
triggering application of federal
“Electioneering communication”:
“Electioneering communication”:
Disclosure (only) is required for
election law-
Defined as a broadcast, cable, or
Defined as a broadcast, cable, or
spending on communications
Express advocacy: Supreme Court,
satellite advertisement that “refers” to a
satellite advertisement that “refers” to a
disseminated within 120 days of a
in Buckley v. Valeo (424 U.S. 1, 44
clearly identified federal candidate,
clearly identified federal candidate,
fed. election, that, if broadcast,
(1976)) and FEC v. Massachusetts
made within 60 days of a general
made within 60 days of a general
“mention” or, if non-broadcast,
Citizens for Life (479 U.S. 238, 249
election or 30 days of a primary for
election or 30 days of a primary, and, if
“refer to or depict” a clearly
(1986)), generally construed federal
that federal office, to an audience that
for House or Senate elections, “is
identified fed. candidate by name,
campaign law to reach only funds
includes voters in that election
targeted to the relevant electorate”
image, or likeness [Sec. 301],
used for independent communications
and, for non-broadcast
by non-political committees that
Exempts news events, “expenditures,”
Exempts news events, “expenditures,”
communications, are “targeted to
include express words of advocacy of
and “independent expenditures”
“independent expenditures,” debates,
the relevant electorate” and total
election or defeat of a clearly
and others by FEC regulation
over $50,000 in a year on all such
identified candidate; prevailing view
communications [Sec. 302]
in lower courts is that, generally,
regulation of such communications
Exempts: broadcast news stories
that do not contain specific express
and commentaries; “expenditures”
words of advocacy (also referred to as
Provides alternative definition of “electioneering communication,” in the event
as defined by federal election law;
the “magic words,” e.g., “vote for” or
that the first definition is ruled unconstitutional, based on FEC v. Furgatch (807
payments by vendors acting solely
“defeat”) is unconstitutional; FEC,
F.2d 857 (9th Cir. 1987), cert. denied, 484 U.S. 850 (1987)) (i.e., communication
pursuant to a contractual
therefore, has had some difficulty in
promoting, supporting, attacking, or opposing a candidate, regardless of
agreement with person sponsoring
enforcing its more encompassing
whether it expressly advocates a vote for or against a candidate, and is
communication; and, in the case of
regulation, which includes a
suggestive of no plausible meaning other than an exhortation to vote for or
non-broadcast media,
“reasonable person” standard for
against a candidate); nothing in provision alters 11 CFR 100.22(b), FEC
communications by a membership
determining whether such
regulation defining express advocacy9 [Secs. 201]
organization (incl. a union) or a
communications constitute “express
corporation solely to its members,
advocacy” [11 CFR §100.22]
stockholders, or executive and
administrative personnel, if entity
is not organized primarily for
purposes of influencing federal
elections [Secs. 301/302]

---

CRS-21
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Targeted communications:
(In context of prohibited electioneering
(In context of disclosure
Not defined
communications by 501(c) and 527
requirements for non-broadcast
corporations:)
communications:)
“Targeted communication” defined
“Targeted to the relevant electorate”
“Targeted mass communication”
as an electioneering communication
defined as a communication which can
defined as a communication
that is distributed from TV/radio
be received by 50,000 or more persons
disseminated within 120 days of a
broadcast station or cable or satellite
in state or district where Senate or
federal election that “refers to or
service whose audience “consists
House election, respectively, is
depicts” a clearly identified federal
primarily” of residents of state for
occurring [Sec. 201]
candidate by name, image, or
which candidate is running for office11
likeness, and that is “targeted to
[Sec. 204]
the relevant electorate”:
(a) Broadcast communication is
deemed as “targeted” if audience
includes a substantial number of
residents of the district (for House
race) or state (for Senate race)
where election is held, as
determined by FEC regulations
(b) Other communications will be
deemed to be targeted if over10%
of intended recipients are part of
that electorate or if over 10% of
that total electorate receives the
communication
[Sec. 302]

---

CRS-22
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Disclosure:
Communications by non-political
Requires disclosure to FEC of
Requires disclosure to FEC of
For broadcast, cable, or satellite
committees that avoid explicit
disbursements for “electioneering
disbursements for direct costs of
communications: requires FEC
advocacy language are outside
communications” by any spender
producing and airing “electioneering
disclosure of disbursements that
purview of, and hence not subject to,
exceeding an aggregate of $10,000 per
communications” by any spender
are disseminated within 120 days
FECA disclosure; but spending on
year in such disbursements, within 24
exceeding $10,000 annual aggregate in
of a federal election, and that
such activities may be disclosed if
hours of the first and each subsequent
such disbursements, within 24 hours of
“mention a clearly identified
group is “political organization” under
$10,000 disbursement [Sec. 201]
the first and each subsequent $10,000
federal candidate” by name, image,
Internal Rev. Code
amount [Sec. 201]
or likeness, within 24 hours after
(26 USC §527)
each such disbursement [Sec. 301]
For non-broadcast
communications: requires FEC
disclosure of disbursements for
communications disseminated
within 120 days of a federal
election, that “refer or depict a
clearly identified federal candidate”
by name, image, or likeness, and
are targeted to relevant electorate,
when total amount spent on such
communications is over $50,000 in
a year, within 24 hours of
exceeding threshold and each
subsequent $50,000 amount
[Sec. 302]

---

CRS-23
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Contents of disclosure:
Only for activities meeting express
For “electioneering
For “electioneering communications”:
Statements to include:
advocacy standard and for FECA-
communications”:
defined political committees –
- Identification of spender, custodian of
- Identification of spender, custodian of
- identification of person making
Statement of organization identifies
books, and any entity exercising
books, and any entity exercising control
the disbursement, any entity
name of spender, sponsor (if any),
control over activity
over activity
sharing or exercising control or
treasurer, custodian of books, and
- principal place of business
- principal place of business
direction over activity, and
banks [2 USC § 433]
- identification of disbursements of
- identification of disbursements of over
custodian of books and accounts
over $200
$200
- principal place of business of
Periodic disclosure reports list
- identification of donors of $1,000 or
- identification of donors of $1,000 or
person making disbursement (if not
aggregate cash on hand, receipts,
more (either to a separate segregated
more (either to a separate segregated
an individual)
expenditures, transfers, loans, rebates,
fund devoted exclusively to such
fund devoted exclusively to such
- identity of candidates mentioned
refund dividends, and interest (and,
activities or, if none, to organization
activities, with funds only from U.S.
or those to whom communication
for presidential candidates, public
itself)
citizens or nationals or permanent
pertains
funds); itemized identification on
resident aliens, or, if no separate
- text of communication
contributions received and
segregated fund, to organization itself)
- amount of disbursement (for non-
expenditures made of over $200 per
- notation as to election and candidates
- notation as to election and candidates
broadcast communications, only
year, with name, address, occupation,
to which communications pertain
to which communications pertain
amounts over $200 and including
and principal place of business of
[Sec. 201]
[Sec. 201]
identity of recipient, as well) [Secs.
donor or recipient
301/302]
For persons other than political
committees, disclosure requirements
are triggered once independent
expenditures over $250 in a calendar
year are made [2 USC § 434]

---

CRS-24
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Corporations and labor unions:
FECA bans union and corporate
Bans funding of “electioneering
Bans funding of “electioneering
No provision
general treasury spending to influence
communications” with funds from
communications” with funds from union
federal elections, subject to Supreme
union or certain corporate funds; but
or certain corporate funds; but exempts
Court imposed express advocacy
exempts Internal Revenue Code
Internal Revenue Code §501(c)(4) or
standards
§501(c)(4) or §527 tax-exempt
§527 tax-exempt corporations making
[2 USC §441b(a)]
corporations making “electioneering
“electioneering communications” with
communications” with funds solely
funds solely donated by individuals who
In FEC v. Massachusetts Citizens for
donated by individuals, who are U.S.
are U.S. citizens or nationals or
Life (MCFL) (479 U.S. 238, 259
citizens or permanent resident aliens10
permanent resident aliens [Sec. 203],
(1986)), Court held that ban on
[Sec. 203], unless a communication is
unless a communication is a “targeted”
corporate general treasury spending
“targeted,” i.e., it was distributed
communication, i.e., it was distributed
cannot be constitutionally applied to
from a broadcaster or cable or
from a broadcaster or cable or satellite
non-profit political or ideological
satellite service whose audience
service and is received by 50,000 or
corporations that do not accept
“consists primarily” of residents of
more persons in state or district where
donations from for-profit corporations
the state for which the candidate is
Senate or House election, respectively,
and unions and whose members have
running for office11 [Sec. 204]
is occurring [Sec. 204]
no economic incentive in the
organization’s political activities
As a result of court decisions,
communications by non-political
committees that avoid explicit
advocacy language are generally
outside purview of FECA regulation

---

CRS-25
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Coordination–
FECA does not define “coordination”
Treats an “electioneering communication” that is coordinated with a candidate,
No provision
or “coordinated activity” per se, but:
agent, or party as a contribution to and expenditure by candidate or party
- Expenditures made in cooperation,
[Secs. 202, 202]
consultation, or concert with, or at the
request or suggestion of, a
candidate/agent shall be deemed a
contribution to the candidate
[2 USC §441a(a)(7)(B)(i)]
- Financing of dissemination,
distribution, or republication, in whole
or part, of any candidate-prepared
materials/broadcasts is considered an
expenditure, subject to relevant limits
[2 USC§441a(a)(7)(B)(ii)]
New FEC coordination rules define
“coordinated general public political
communications” as coordinated
communications concerning clearly
identified candidates, paid for by
persons other than candidates/parties,
incl. express or issue advocacy; a
communication will be considered
coordinated if: it is made at request or
suggestion of candidate or party,
candidate or party had control or
substantial decision-making authority,
or candidate or party engaged in
substantial discussion or negotiation
with those involved in paying for,
creating, producing, or distributing
communication
[11 CFR §100.23 (2001)]

---

CRS-26
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Broadcast disclosure:
- Attribution: Fed. Communications
Act imposes general requirement that
(See discussion under “Advertising” section)
No provision
political radio/TV ads incl. notice of
who paid for ads [47 USC § 317]
FCC regulations further require paid
TV political ads and other matters
involving the discussion of
controversial issues of public
importance to provide “true identity”
of sponsor “with letters equal to or
greater than four percent of the
vertical picture height that air for not
less than four seconds” and require
broadcasters to disclose extent to
which any “film, record, transcription,
talent, script, or other material”
related to an ad, was furnished to the
broadcaster in connection with the
airing of a political advertisement or
other matter involving the discussion
of a controversial issue of public
importance [47 CFR § 73.1212]
- Public inspection files: When
political ad was paid for by a
Requires broadcasters to maintain and make available for public inspection
No provision (requires disclosure
corporation, committee, association,
records of broadcast time requests by candidates or by other entities whose
to FEC; see above)
or unincorporated group, FCC regs.
messages relate to political matters of national importance, including messages
also require broadcaster to maintain
about a legally qualified candidate, a federal election, or a legislative issue of
records of group’s governing
public importance; requires records to include: whether request was accepted;
personnel, available for public
rate charged; date and time message aired; class of time purchased;
inspection [47 CFR § 73.1212]
identification of candidate and office, election, or issue referred to; and identity
of purchaser, including officers of any non-candidate entity12 [Secs. 504 504]

---

CRS-27
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
FEC Disclosure
- Requires all reports filed
Requires all reports filed with FEC to be posted on Internet and available for
No provision
electronically to be posted on FEC
inspection within 48 hours, or 24 hours if filed electronically13 [Secs. 501, 502]
Web site within 24 hours of receipt
[2 USC §434(a)(11)(B)]
- Requires paper reports to be
available for public inspection at FEC
within 48 hours of receipt
[2 USC §438(a)(4)]
No provision
Requires FEC to maintain central Web site of all publicly available election-
No provision
related reports13 [Secs. 502, 502]
No provision
Requires FEC to develop and provide standardized software for filing reports
No provision
electronically, and requires candidates’ use of such software14 [Secs. 307, 307]
Filing schedule for candidates:
Principal campaign cttees. of cands.
Requires candidates to file monthly reports in election years and quarterly
No provision
must file quarterly, pre-elctn., and, for
reports in non-election years12 [Secs. 503, 503]
general, post-election reports in elctn.
years, and semi-annual reports in non-
elctn. years; presidential candidates
with actual or expected contributions
or expenditures over $100,000 must
file monthly in pres. election years [2
USC §434(a)]
Filing schedule for parties:
Non-candidate committees (incl.
Requires national party committees to file monthly reports in all years12
No provision
parties) may file: (a) quarterly, pre-
[Secs. 503, 503]
elctn., and, for general, post-elctn.
reports in elctn. yrs., and semi-annual
reports in non-election years; or (b)
monthly reports [2 USC §434(a)]

---

CRS-28
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
FEC Enforcement
Criminal penalties:
For knowing and willful violations
Increases criminal penalties for knowing and willful violations involving
No provision
involving contributions/expenditures
contribution/expenditure/donation amounts aggregating from $2,000 to $25,000
of $2,000 or more per year: a fine
in a year: a fine under Title 18 (USC) or up to one year in prison, or both; for
equaling the greater of $25,000 or
knowing and willful violations involving amts. aggregating $25,000 or more: a
300% of amount involved or up to one
fine under Title 18 or up to five years in prison, or both15 [Secs. 314, 313]
year in prison, or both
[2 USC §437g(d)(1)(A)]
Statute of limitations:
Three years for criminal violations of
Changes to five years, for criminal violations of FECA15 [Secs. 315, 314]
No provision
FECA [2 USC §455(a)]
Sentencing guidelines:
No provision
Directs U.S. Sentencing Commission to promulgate guidelines and make
No provision
legislative or administrative recommendations regarding penalties for violating
federal election law, per specified considerations15 [Secs. 316, 315]
Penalties for violating ban on
contributions made in the name of
another:
No specific penalties
Civil: Imposes penalties, for knowing and willful violations, of between 300% of
No provision
violation amount and the greater of $50,000 or 1000% of violation amt.
Criminal: For knowing and willful violations in amounts of over $10,000,
imposes penalties of two years in prison for up to $25,000 violation amount, or
fine of between 300% of violation amount and the greater of $50,000 or 1000%
of violation amt., or prison and fine16 [Secs. 317, 316]
No provision
No provision
Requires FEC to promulgate regulations
No provision
to prohibit efforts to evade or
circumvent limitations, prohibitions, and
reporting requirements of FECA [Sec.
322]

---

CRS-29
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Advertising
Lowest unit rate (LUR):
Broadcasters must sell time to
Makes TV, cable, and satellite LUR
Makes TV, cable, and satellite LUR
No provision
candidates during last 45 days of a
broadcast time non-preemptible, with
broadcast time (for last 45/60 days of
primary and 60 days of a general
rates based on comparison to prior
election) non-preemptible, with rates
election at LUR for same class and
365 days; requires such rates to be
based on comparison to prior 180 days;
amount of time for same period
available to parties buying time on
requires such rates to be available to
[47 USC § 315(b)]
behalf of candidates; and provides for
parties buying time for “coordinated
random audits to insure compliance17
expenditures” for their cands.; and
[Sec. 305]
provides for random audits to insure
compliance [Sec. 305]
Conditions party eligibility for LUR
on voluntary compliance with party
coordinated expenditure limits in
event that Supreme Court finds them
unconstitutional; in such event, allows
broadcaster to not offer party LUR for
independent expenditures18 [Sec. 309]
Candidate appearance in ads:
No content requirements for lowest
Requires federal candidate broadcast ads that are sold at lowest unit rate and
No provision
unit rate (LUR) ads
that include direct reference to opponents to include candidate photo or image
on TV and a statement of candidate approval (printed on TV and spoken by
candidate on radio)19 [Secs. 306, 306]
Sponsor Identification:
Public political advertisements, from
- Adds requirement for sponsor ID by political committees for any public
No provision
expenditures by any person, incl.
political advertising (including “electioneering communications”)
express advocacy, or those containing
- Requires specific minimal standards to enhance visibility of such identification
contribution solicitations, must state
in the communication20 [Secs. 313, 312]
clearly who paid for communication
and whether a candidate authorized it
[2 USC §441d]

---

CRS-30
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Foreign Money
Prohibits direct or indirect
Bans direct or indirect contributions
Bans direct or indirect contributions
No provision
contributions or anything of value, or
from foreign nationals (incl. soft
from foreign nationals (incl. soft
their solicitation, from foreign
money), or their solicitation or receipt,
money), or their solicitation or receipt,
nationals, in connection with election
or any promise to make such
or any promise to make such donations,
to any political office; exempts
donations, in connection with any U.S.
in connection with any U.S. election, to
permanent resident aliens
election or to a natl. party committee
a natl. party committee, or for any
[2 USC §441e]
(retains permanent resident alien
expenditure, disbursement, or
exemption) [Sec. 303]
independent expenditure for an
“electioneering communication” (retains
permanent resident alien exemption)
[Sec. 303]
No provision
Clarifies that ban does not apply to U.S.
No provision
nationals [Sec.318]
Miscellaneous
Fundraising on govt. property:
Bans solicitation or receipt of
Bans solicitation or receipt of contributions, including soft money, from anyone or
No provision
contributions, as defined by FECA, in
by federal officials, while in any federal government building used to discharge
any room or building used by federal
official duties [Secs. 302, 302]
officials or employees to discharge
official duties [18 USC § 607]
Joint fundraising committees:
No provision
Prohibits federal candidates’ authorized
No provision
Political committees (incl. party
committees from forming joint
cttees.) may engage in joint
fundraising committees with any party
fundraising with other political
committee [Sec. 321]
committees (incl. candidate cttees.)
[11 CFR §102.17]
(For permissible joint fundraising by
presidential candidates receiving
matching funds see 11 CFR §9034.8)

---

CRS-31
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Inaugural committees:
Donations to presidential inaugural
- Requires FEC disclosure of over-$200 donations to presidential inaugural
No provision
committees are not considered
committees within 90 days of event
contributions under FECA [See, e.g.,
- Bans foreign national donations21 [Secs. 310, 309]
FEC Advisory Opinion 1980-144]
Fraudulent misrepresentation:
No provision
Bans candidates’ fraudulent
- Prohibits fraudulent misrepresentation in the solicitation of campaign funds
misrepresentation on a matter that is
- Bans knowing and willful participation in conspiracy to engage in such
damaging to other candidates or
violations22 [Sec. 311, 310]
parties [2 USC §441h]
Contributions by minors:
No different treatment for minors and
No provision
Bans contributions to candidates and
No provision
adults
donations to parties by individuals 17
and younger [Sec. 319]
Contributions through conduits:
Considers contributions made by a
No provision
Adds that a contribution solicited by a
No provision
person directly or indirectly to a
candidate to support his/her election and
candidate, incl. those earmarked or
arranged or suggested to be spent by or
directed through an intermediary or
through an intermediary or conduit to
conduit, as contributions by person to
assist that candidate’s election, will be
candidate [2 USC §441a(a)(8)]
considered as a contribution to the
candidate [Sec. 320]
No provision
GAO Study:
Directs GAO to study and report to Congress statistics for and effects of public
No provision
funding systems in Arizona and Maine23 [Secs. 312, 311]

---

CRS-32
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Expedited review:
Provides for expedited judicial review
Provides for expedited review to the
Provides for expedited review to the
No provision
by appropriate district court,
U.S. District Court for D.C. (and
U.S. District Court for D.C. (and
certifying all constitutional questions,
exclusive venue) for declaratory
exclusive venue) for declaratory
to the court of appeals for the circuit
judgment and injunctive relief;
judgment and injunctive relief on
involved, sitting en banc [2 USC §
provides direct appeal to the U.S.
constitutional grounds; provides direct
437h] (Prior to 1988 amendments,
Supreme Court from any final order
appeal to the U.S. Supreme Court from
FECA also provided expedited, direct
or judgment; and provides for
any final order or judgment; and
appeal to U.S. Supreme Court)
expedited consideration by both
provides for expedited consideration by
[P.L.100-352]
courts24 [Sec. 403]
both courts
Provides that if any person aggrieved by
the statute brings an action for
declaratory or injunctive relief, which
challenges the constitutionality and
names the U.S. as defendant, within 90
days of enactment: (a) action shall be
heard by three-judge court in the U.S.
District Court for D.C.; (b) copy of
complaint shall be delivered promptly to
Clerk of the House and Secretary of the
Senate; (c) a final decision shall be
reviewable only by direct appeal to U.S.
Supreme Court; and (d) expedited
consideration shall be provided by both
courts
Further provides that in any action
challenging the constitutionality, any
Member of the House or Senate shall
have the right to intervene [Sec. 403]

---

CRS-33
S. 27
H.R. 2356
H.R. 2360
Current Law
(McCain-Feingold)
(Shays-Meehan)
(Ney-Wynn)
Partial Invalidity:
Severability:
If any provision of the Act, or its
If any provision of the Act or its amendments, or its application to any person or
No provision
application to any person or
circumstance, is held unconstitutional, the remainder of the Act and its
circumstance, is held invalid, the
amendments, and its application to any person or circumstance, shall not be
validity of the remainder and its
affected by the holding [Secs. 401, 401]
application to other persons and
circumstances shall not be affected.
[2 USC § 454]
Effective date:
Effective date:
Effective date:
30 days after enactment, unless
Generally: 30 days after enactment,
With respect to elections after
otherwise provided [Sec. 402]
unless otherwise provided
December 2002 [Sec. 401]
Transition rules for soft money:
- Allows parties to spend without
restriction soft money raised between
effective date and 90 days thereafter
- Until March 31, 2002, national parties
may transfer soft money funds to state
or local parties or to §501(c) or §527
tax-exempt organizations
- At any time after effective date,
national parties may use such funds to
defray costs of construction or purchase
of a party office building or facility
[Sec. 402]

---

CRS-34
Notes to Table
1 Thompson-Feinstein (S.Amdt. 149)
2 S. 27, as proposed, raised this limit to $30,000 per year
3 Domenici (S.Amdt 115)
4 Durbin (S.Amdt. 169)
5 McCain (S.Amdt. 165)
6 Levin (S.Amdt. 161)
7 Restated by Hagel (S.Amdt. 146, Div. 2)
8 Nickles-Gregg (S.Amdt. 139); dropped the “Beck provision,” no longer in any of these bills
9 Specter (S.Amdt. 140)
10 McCain (S.Amdt. 171)
11 Wellstone (S.Amdt. 145)
12 Hagel (S.Amdt. 146, Div. 2)
13 Cochran (S.Amdt. 137)
14 Landrieu (S.Amdt. 124)
15 Thompson (S.Amdt. 163)
16 Bond (S.Amdt. 166)
17 Torricelli (S.Amdt. 122)
18 Schumer (S.Amdt. 153)
19 Wyden-Collins (S.Amdt. 138)
20 Durbin (S.Amdt. 162)
21 Bingaman (S.Amdt. 157)
22 Nelson, FL (S.Amdt. 159)
23 Kerry (S.Amdt. 160)
24 Hatch (S.Amdt. 167)
Common abbreviations in tables
Acct. (account)
Allctn. (allocation)
Amt. (amount)
Cand. (candidate)
Connec. (connection)
Cttee. (committee)
Elctn. (election)
Exec. (executive)
Expend. (expenditure)
Fed. (federal)
GOTV (get-out-the-vote)
ID (identification)
Incl. (including)
Indiv. (individual)
Indpt. (independent)
Natl. (national)
No. (number)
% (percentage)
Pres. (presidential)
Prof. (professional)

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