Campaign Finance Reform Bills in the 105th Congress: Comparison of H.R. 3485 (Thomas), S. 25 (McCain-Feingold), and Current Law

Campaign Finance Reform Bills in the 105th Congress: Comparison of H.R. 3485 (Thomas), S. 25 (McCain-Feingold), and Current Law

98-287 GOV
Updated March 30, 1998
CRS Report for Congress
Received through the CRS Web
Campaign Finance Reform Bills in the 105th
Congress: Comparison of H.R. 3485 (Thomas),
S. 25 (McCain-Feingold), and Current Law
Joseph E. Cantor
Specialist in American National Government
Government Division
Summary
The House plans to consider campaign reform legislation—H.R. 3485
(Thomas)—reported by the House Oversight Committee on March 18, 1998. A
proposed amendment, to be offered by Mr. Thomas on March 30, would add restrictions
on state party soft money spending and drop coverage of non-profit groups from the
prohibition on involuntary use of funds for political purposes. The bill that has generated
the most publicity in the 105 Congress is S. 25 (McCain-Feingold), as revise
th
d
September 29, 1997, introduced in the House as H.R. 3526 (Shays-Meehan). Thi
1
s
report summarizes and compares H.R. 3485 with amendment, S. 25 as revised (H.R.
3526), and current law.
Table 1. Comparison of H.R. 3485, S. 25, and Current Law
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
SOURCES OF FUNDS
PACs
No provision
Protects confidentiality of
No provision
small donors or decliners to
union or corporate PAC
solicitations

1 Cloture votes on S. 25 failed in the Senate on October 7, 8, and 9, 1997. In February 1998, the
bill was offered as a floor amendment to S. 1663 (Lott) and further modified by the Snowe-Jeffords
amendment; a cloture vote on this new version of the McCain-Feingold bill failed in the Senate
February 26, 1998. This report is based on the current version of S. 25, not the modified floor
amendment of February, and the identical H.R. 3526.
Congressional Research Service ˜ The Library of Congress

CRS-2
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
Individuals
To candidates:
$1,000 per election
$2,000 per election
No provision
To state & local parties:
$5,000 per year
$15,000 per year
$10,000 per year
To national party:
$20,000 per year
$60,000 per year
No provision
Aggregate annual limit:
$25,000
$75,000
$30,000
Limits not indexed for
Indexes limits to 1999 base
No provision
inflation
Parties
To candidates:
$5,000 per election
$15,000 per election
No provision
Limits not indexed for
Indexes limits to 1999 base
No provision
inflation
Candidates
No limits on candidate
If candidate exceeds individual
Prohibits party coordinated
spending from personal funds
limit, up to $150,000, in House
expenditures for Senate (or
general election:
House) general election
Lifts party contribution limit
candidate who exceeds
for opponent, up to amount
voluntary limit of $50,000 in
above individual limit
personal & family funds
If candidate exceeds $150,000
in House general election:
Lifts party & individual
contribution limits (incl.
aggregate annual limit) &
raises PAC limit by 10 times
for all candidates, up to
amount over $150,000
If candidate exceeds $150,000
in House primary election:
Lifts individual contribution
limit (not incl. aggregate
annual limit) & raises PAC
limit by 10 times for all
candidates, up to amount over
$150,000
Law bans personal use of
No provision
Codifies regulations on
campaign funds, as defined in
permissible use of campaign
FEC regulations
funds

CRS-3
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
SOFT MONEY
Party soft money
No limits on national party
Bans national parties from
Bans national parties from
receipt of soft money
soliciting, receiving, directing,
soliciting, receiving, directing,
transferring, or spending soft
transferring, or spending soft
money
money
State parties must follow
- Bans use of soft money by
- Bans state/local parties from
allocation formulae in FEC
state parties on mixed
spending soft money for:
regulations for determining
activities, aimed at influencing
registration drives in last 120
appropriate share of hard &
federal and non-federal
days of federal election; voter
soft money for mixed (federal-
elections (e.g., voter
ID, get-out-the-vote drives, &
state-local) activities
registration, get-out-the-vote
generic activity if federal
drives, and general political
candidate is on ballot; &
advertising)
messages that refer to federal
- Bans transfers of non-
candidate with intent of
federally-permissible funds
election influence
between state parties
- Allows soft money on solely
non-federal activities
No provision
No provision
No soft money to raise funds
Disclosure by national parties
No provision
Codifies & increases disclosure
since 1991 FEC regulations
requirements
Contributions to party building
No provision
Removes building fund
funds are exempt from FECA
exemption for national parties
definition of contribution
Candidate soft money raising
No provision
Bans federal candidates &
Prohibits federal candidates &
officials raising: soft money for
officials from raising soft
federal election; money from
money for any federal election
sources beyond federal
activity; exempts attendance at
restrictions in non-federal
state/local party fundraisers
races; & soft money for
messages that identify federal
candidates; exempts
attendance at state/local party
fundraisers in home state
Non-party soft money
Under Beck and other court
Requires pre-authorization for
Requires unions to notify dues-
rulings, dues-paying non-
unions’ political use of dues,
paying non-members (Beck
members have right to
fees, or payments from
workers) of rights to disallow
disallow political use of their
members or non-members
political use of their funds
funds
No provision
Requires pre-authorization
No provision
from corporate & national
bank employees &
stockholders for political use
of dues, fees, or payments as
condition of employment
No provision
Corporate stockholders may
No provision
withhold % share of stocks
used for expected political
spending, per annual notice

CRS-4
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
No union or corporate
No provision
Requires disclosure of exempt
disclosure for exempt
activities (incl. internal
activities, except internal
communications referring to
communications above $2,000
federal candidate only), above
per election
$50,000 per year
No provision
Denies public funding to
No provision
presidential candidates who
raise soft money
Tax-exempt activity
No provision
No provision
Bans parties from raising
money for or giving to tax-
exempt groups
ISSUE ADVOCACY
Based on court rulings, only
Requires FEC disclosure of
- Defines express advocacy, as
spending for communications
spending and sources of funds
communications for or against
that use express advocacy
for communications that
candidate by explicit language
language (e.g., vote for, defeat)
identify federal candidates or
that in context can have no
are subject to disclosure rules,
parties within 90 days of
other reasonable meaning;
source limits & prohibitions of
election, over $250 threshold
paid broadcast citing a
FECA
candidate within 60 days of
election, or unmistakable,
unambiguous election
advocacy, taken as a whole,
with limited reference to
external events
- Voter guide exemption
Expenditure defined in FECA
No provision
Amends definition to incl.
as money spent to influence a
payment for message with
federal election
express advocacy, or refers to
clearly identified candidate
(coordinated), to influence
federal election
INDEPENDENT EXPENDITURES
Prohibits cooperation and
No provision
Tightens definition of what
coordination of independent
constitutes coordination and
expenditures with candidates
cooperation
Based on 1996 Colorado
No provision
Prohibits parties from making
ruling, parties may make
both coordinated and
independent expenditures for
independent expenditures for a
candidates (without limit)
general election candidate
Requires prompt disclosure in
No provision
Augments disclosure of large
last 20 days of election
expenditures near election

CRS-5
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
FOREIGN NATIONAL MONEY
Federal law ban contributions
- Ends green card exemption
Bans direct or indirect foreign
from foreign nationals or
- Bans foreign national
national contributions,
raising such funds in
independent expenditures or
including soft money, in
connection with U.S. elections;
soft money donations
connection with any election
exempts permanent resident
- Doubles penalties for
aliens (with green cards)
violations
FEDERAL ELECTION COMMISSION
Disclosure
Optional electronic filing
Requires electronic filing by
Requires electronic filing by
all committees above $50,000
all committees above FEC-
per year
determined level, with Internet
posting within 24 hours
No provision
Candidates may disclose all
No provision
activity in 24 hours in last 90
days; prompt Internet posting
Candidates must disclose in 48
Candidates must make such
No provision
hours $1000+ contributions in
notice within 24 hours
last 20 days of election
Independent expenditures of
FEC must receive such notices
No provision
$1000+ must be disclosed in
within 24 hours of being made
24 hours in last 20 days
Candidate disclosure on
Candidate disclosure on
No provision
calendar year basis
election cycle basis
No provision
Requires reports on payments
No provision
of $500+ by secondary payees
Law requires post-election
Requires aggregate totals
No provision
reports
through election on reports
Contributions of $200+ must
Requires candidate reports to
- Prohibits candidates from
incl. name, address,
show cumulative amounts
depositing contributions over
occupation, & employer; best
received from itemized
$200 without required ID
efforts required to obtain
contributors
- Lowers itemization threshold
information
to $50 for contributions
No provision
Requires disclosure of push
No provision
polls within 90 days of election
if results are not made public
FEC may audit only if it has
No provision
Allows random audits of
reason to believe a violation
campaigns within 12 months
occurred
after election
Enforcement
Ambiguities in law may be
- Allows written responses to
No provision
clarified through FEC advisory
written requests where law is
opinions, issued with majority
unambiguous
support of commissioners
- Requires FEC to publish &
index responses
- Provides safe harbor
protection for anyone acting in
good faith, based on response
FEC required to notify object
Enhances notice with assertion
No provision
of a complaint
that object of complaint has
not been found guilty

CRS-6
Current law
H.R. 3485 (Thomas),
S. 25 (McCain-Feingold)/
with amendment
H.R. 3526 (Shays-Meehan)
FEC may initiate enforcement
Changes FEC criteria to
Changes FEC criteria to
action with “reason to believe”
“reason to investigate”
“reason to investigate”
a violation may have occurred
standard
standard
Penalties: maximums are
Indexes penalties for inflation
- Increases knowing and
prescribed in election law
willful violation penalties
- Automatic late filing
penalties
- Equitable remedies in
conciliation agreements
Law specifies timetable for
No provision
Expedites FEC enforcement
enforcement actions
procedures late in election
FEC may refer suspected
No provision
Allows FEC referrals at any
violations to Justice only if
time
probable cause to believe a
violation has occurred
MISCELLANEOUS
No provision
Barriers to vote fraud:
No provision
- Pilot programs on voter
eligibility confirmation
- Incl. citizenship &
naturalization information on
registration forms (unless
waived by states)
- Allows address checks on
recent non-voters
FECA bans solicitation of
No provision
Includes raising soft money in
campaign funds, as defined,
ban on solicitation from
from federal govt. buildings
government buildings
No provision
Push poll sponsors must
No provision
identify selves to respondents
Imposes penalties on publicly-
Increases fines on presidential
No provision
funded presidential candidates
candidates seeking to evade
who evade voluntary spending
spending limits by raising non-
limits and, in general election,
public funds
raise private funds
Bans cash contributions over
Bans receipt of such
No provision
$100
contributions
Bans House franked mass
No provision
Bans franked mass mailings in
mailings 90 days from election
Member’s election year
Requires disclaimers on
No provision
Enhances disclaimer
broadcast and print ads
requirements
No provision
No provision
Bans false representation to
raise funds
No provision
No provision
Bans non-candidate committee
use of candidate names
No provision
No provision
Bans donations by individuals
17 years & younger