Campaign Finance Reform Bills in the 105th Congress: Comparison of H.R. 3581 (Thomas), H.R. 3526 (Shays-Meehan), and Current Law

Campaign Finance Reform Bills in the 105th Congress: Comparison of H.R. 3581 (Thomas), H.R. 3526 (Shays-Meehan), and Current Law

98-364 GOV
April 13, 1998
CRS Report for Congress
Received through the CRS Web
Campaign Finance Reform Bills in the 105th Congress:
Comparison of H.R. 3581 (Thomas),
H.R. 3526 (Shays-Meehan), and Current Law
Joseph E. Cantor
Specialist in American National Government
Government Division
Summary
On March 30, 1998, the House considered four campaign reform bills under a
suspension of rules, focusing on the comprehensive H.R. 3581, offered that day for the
Republican leadership by Mr. Thomas; it failed passage on a 74-337 vote. (The bill was
similar to H.R. 3485, also by Mr. Thomas, reported by the House Oversight Committee
March 18. ) The bill
1
generating the most publicity in the 105th Congress has been S. 25
(McCain-Feingold), introduced on March 19 as H.R. 3526 by Messrs. Shays an
2
d
Meehan. This report summarizes and compares H.R. 3581, H.R. 3526, and current law.
Table 1. Comparison of H.R. 3581, H.R. 3526, and Current Law
Current law
H.R. 3581 (Thomas)
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 H.Rept. 105-457, Pt. 1.

2 The McCain-Feingold legislation has been revised twice in the 105th Congress. The first revision
(September 29, 1997) was the subject of three failed cloture votes in the fall of 1997, on October
7, 8, and 9. The second revision (February 1998) was in the form of a floor amendment (to S.
1663), as modified by the Snowe-Jeffords amendment. (A cloture vote on this version failed in
the Senate February 26, 1998.) The Shays-Meehan bill is based on the current version of S. 25,
considered by the Senate in 1997, not February’s modified floor amendment.
Congressional Research Service ˜ The Library of Congress

CRS-2
Current law
H.R. 3581 (Thomas)
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 inflation-indexed
Indexes limits to 1999 base
No provision
Parties
To candidates:
$5,000 per election
$15,000 per election
No provision
Limits not inflation-indexed
Indexes limits to 1999 base
No provision
Candidates
No limits on candidate
If candidate exceeds
Bans party coordinated
spending from personal
individual limit, up to
expenditures for House
funds
$150,000, in House general
general election candidates
election: Lifts party
who exceed $50,000 vol.
contribution limit for
limit in personal/ family
opponent, up to amount
funds; fines candidates who
above individual limit
pledge to abide and exceed
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
permissible use of campaign
in FEC regulations
funds
INDEPENDENT EXPENDITURES
Prohibits cooperation and
No provision
Tightens definition of what
coordination of independent
constitutes coordination and
expenditures with candidates
cooperation
Requires filing within 24
Requires FEC receipt of
Augments disclosure
hours of $1000+ in last 20
filing within 24 hours of
requirements of large
days of election
being made
amounts close to election

CRS-3
Current law
H.R. 3581 (Thomas)
H.R. 3526 (Shays-Meehan)
Based on 1996 Colorado
No provision
Bans parties from making
ruling, parties may make
both coordinated & indep-
independent expenditures for
endent expenditures for
candidates (no limit)
general election candidate
SOFT MONEY
Party soft money
No limits on national party
Bans national parties from
Bans national parties from
receipt of soft money
soliciting, receiving,
soliciting, receiving,
directing, transferring, or
directing, transferring, or
spending soft money
spending soft money
State parties must follow
- Bans use of soft money by
- Bans state/local party soft
allocation formulae in FEC
state parties on mixed
money spending for federal
regulations for determining
activities, aimed at
election activity: registration
appropriate share of hard &
influencing federal and non-
drives in last 120 days of
soft money for mixed
federal elections (e.g., voter
federal election; voter ID,
(federal-state-local) activities
registration, get-out-the-vote
get-out-the-vote drives, &
drives, and general political
generic activity if federal
advertising)
candidate is on ballot; &
- Bans transfers of non-
messages that refer to federal
federally-permissible funds
candidate with intent of
between state parties
election influence
- Allows soft money on
solely non-federal activities
No provision
No provision
No soft money to raise funds
Disclosure by national
No provision
Codifies & increases
parties (1991 FEC regs.)
disclosure requirements
Contributions to party
No provision
Removes building fund
building funds are exempt
exemption for national
from contribution definition
parties
Candidate soft money raising
No provision
Bans federal candidates &
Prohibits federal candidates
officials raising: soft money
& officials from raising soft
for federal election; money
money for federal election
from sources beyond federal
activity (see above); exempts
restrictions in non-federal
attendance at state party
races; & soft money for
fundraisers
messages that identify
federal candidates; exempts
attendance at state party
fundraisers in home state
No provision
Denies public funding to
No provision
presidential candidates who
raise soft money

CRS-4
Current law
H.R. 3581 (Thomas)
H.R. 3526 (Shays-Meehan)
Non-party soft money
Under Beck and other court
Requires pre-authorization
Requires unions to give
rulings, dues-paying non-
for unions’ political use of
adequate notice to dues-
union members have right to
dues, fees, or payments from
paying non-members of
disallow political use of their
members or non-members
rights to disallow political
funds
use of funds
No provision
Requires pre-authorization
No provision
from corp. & 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 expected
political spending (per
annual notice), in proportion
to stocks owned
No union or corporate
No provision
Requires disclosure of
disclosure for exempt
exempt activities (incl.
activities, except internal
internal communications
communications above
referring to fed. candidate
$2,000 per election
only), over $50,000 per year
Tax-exempt activity
No provision
No provision
Bans party raising money or
giving to tax-exempt groups
ISSUE ADVOCACY
Based on court rulings, only
Requires FEC disclosure of
- Defines as communication
spending for
spending and sources of
for or against candidate by:
communications that use
funds for communications
explicit language that in
express advocacy language
that identify federal
context can have no other
(e.g., vote for, defeat) are
candidates or parties within
reasonable meaning; paid
subject to disclosure rules,
90 days of election, over
broadcast citing a candidate
source limits & prohibitions
$250 threshold
within 60 days of election; or
of FECA
unambiguous advocacy,
taken as whole with limited
reference to external events
- Voter guide exemption
Expenditure defined in
No provision
Amends definition to incl.
FECA as money spent to
payment for message with
influence a federal election
express advocacy, or that
refers to clearly identified
candidate, is coordinated, &
seeks fed. election influence
FOREIGN NATIONAL MONEY
Bans contributions and
- Ends green card exemption
Bans direct or indirect
fundraising from foreign
- Bans foreign national
foreign national
nationals in connection with
independent expenditures or
contributions, including soft
U.S. elections; exempts
soft money donations
money, in connection with
permanent resident aliens
- Doubles penalties for
any election (leaves green
(with green cards)
violations
card exemption in law)

CRS-5
Current law
H.R. 3581 (Thomas)
H.R. 3526 (Shays-Meehan)
FEDERAL ELECTION COMMISSION
Disclosure
Optional electronic filing
Requires electronic filing by
Requires electronic filing by
all committees above
all committees over FEC-set
$50,000 per year
level, with 24 hour Internet
posting
No provision
Candidates may disclose all
No provision
activity in 24 hours in last
90 days; FEC must promptly
post such reports on Internet
Candidates must disclose in
Candidates must make such
No provision
48 hours $1000+
notice within 24 hours
contributions in last 20 days
of election
Candidate disclosure on
Candidate disclosure on
No provision
calendar year basis
election cycle basis
No provision
Requires reports on
No provision
payments of $500+ by
secondary payees
Law requires post-election
Requires aggregate totals
No provision
reports
through election on reports
No provision
Requires disclosure of push
No provision
polls within 90 days of
election if results not public
Contributions of $200+ must
Requires candidate reports to
- Bans candidate deposit of
incl. name, address,
show cumulative amounts
$200+ contributions without
occupation, & employer;
received from itemized
required ID
best efforts required to
contributors
- Lowers itemization
obtain information
threshold to $50 for
contributions
Enforcement
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
Ambiguities in law may be
- Allows written responses to
No provision
clarified through FEC
written requests where law is
advisory opinions, issued
unambiguous
with majority support of
- Requires FEC to publish
commissioners
and index responses
- Gives safe harbor
protection if acting in good
faith on response
FEC required to notify
Enhances notice to assert
No provision
object of a complaint
that object of complaint has
not been found guilty
FEC may initiate
Changes FEC criterion to
Changes FEC criterion to
enforcement action with
“reason to investigate”
“reason to investigate”
“reason to believe” a
standard
standard
violation may have occurred

CRS-6
Current law
H.R. 3581 (Thomas)
H.R. 3526 (Shays-Meehan)
Penalties: maximums are
Indexes penalties for
- Increases knowing &
prescribed in election law
inflation
willful violation penalties
- Automatic late filing
penalties
- Allows 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
- Requires citizenship &
naturalization information on
registration forms (unless
waived by states)
- Allows address checks on
recent non-voters
Bans solicitation of
No provision
Includes raising soft money
campaign funds, as defined,
in ban on solicitation from
from federal govt. buildings
government buildings
No provision
Push poll sponsor must
No provision
identify self to respondents
Imposes penalties on
Increases fines on
No provision
publicly-funded presidential
presidential candidates
candidates who evade
seeking to evade spending
voluntary spending limits
limits by raising non-public
and, in general election, raise
funds
private funds
Bans cash contributions over
Bans receipt of such
No provision
$100
contributions
Bans House franked mass
No provision
Bans franked mass mailings
mailings 90 days from
in Member’s election year
election
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 comm.
use of candidate names
No provision
No provision
Bans donations by those 17
years & younger