Campaign Finance Bills in the 105th Congress: Comparison of H.R. 2183 (Hutchison -Allen), H.R. 3526 (Shays-Meehan), and Current Law

Campaign Finance Bills in the 105th Congress: Comparison of H.R. 2183 (Hutchison -Allen), H.R. 3526 (Shays-Meehan), and Current Law

98-409 GOV
Updated July 22, 1998
CRS Report for Congress
Received through the CRS Web
Campaign Finance Bills in the 105th Congress:
Comparison of H.R. 2183 (Hutchinson-Allen),
H.R. 3526 (Shays-Meehan), and Current Law
Joseph E. Cantor
Specialist in American National Government
Government Division
Summary
As pledged by Speaker Gingrich, the House renewed consideration of campaign
finance reform in May 1998. The principal bill is H.R. 2183, known as the freshman
bipartisan bill, introduced July 17, 1997, by Messrs. Hutchinson and Allen. Selected
floor amendments and substitutes will be in order. The legislation that has generated the
most publicity in the 105 Congress has been the McCain-Feingold bill (S. 25), offered
th
on March 19, 1998, as H.R. 3526 by Messrs. Shays and Meehan; this has also bee
1
n
offered as substitute amendment no. 13 to H.R. 2183 in the current debate. Table 1
highlights key differences between the two bills, and Table 2 summarizes and compares
H.R. 2183, H.R. 3526, and current law.
Table 1. Key Differences between Freshman and Shays-Meehan Billsa
Subject
Freshman bill
Shays-Meehan
Party soft
Ban inter-state party
Ban state party soft money
money
transfers
spending on certain
activities at some times
Non-party
No provision
* Codify Beck decision
soft money
* Increase disclosure
* No party funds to tax-
exempt groups
1 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
Subject
Freshman bill
Shays-Meehan
Issue advocacy
Disclosure only (of
Redefine express advocacy
expenditures, not sources
(apply all fed. limits,
of funds)
prohibitions & disclosure)
Hard (federal)
* No party coordinated
Minor increases in limits on
money
expenditure limits
individual giving to parties
* Double individual
aggregate limit
* Index contribution limits
Wealthy
No provision
No party spending for
candidates
candidate over $50,000
Independent
No provision
* Tighten definitions
expenditures
* Ban party independent &
coordinated spending for
same candidate
Foreign
No provision
Ban party soft money from
nationals
foreign nationals
Fed. bldg. ban
No provision
Include soft money in ban
on fundraising
Enforcement
No provision
Increase FEC authority
Table 2. Comparison of H.R. 2183, H.R. 3526, and Current Lawa
H.R. 2183
H.R. 3526
Current law
(Hutchinson-Allen)
(Shays-Meehan)
SOURCES OF FUNDS
PACs
Contribution limits not
Indexes limits by CPI every
No provision
inflation-indexed
presidential election year,
rounded to nearest $100
Individuals
To state & local parties:
No provision
$10,000 per year
$5,000 per year
To national party:
$25,000 per year
No provision
$20,000 per year
Aggregate annual limit:
$25,000 to all party
$30,000
$25,000 to parties,
committees, plus $25,000 to
candidates, & PACs
candidates & PACs
Contribution limits not
Indexes limits by CPI every
No provision
inflation-indexed
presidential election year,
rounded to nearest $100
Parties
Coordinated expenditures
Repeals coordinated
No provision
Party spending for general
expenditure limits
election candidates limited
(1998: House race=$65,100;
$130,200 in 1-district state)

CRS-3
H.R. 2183
H.R. 3526
Current law
(Hutchinson-Allen)
(Shays-Meehan)
Contribution limits not
Indexes limits by CPI every
No provision
inflation-indexed
presidential election year,
rounded to nearest $100
Candidates
No limits on candidate
No provision
Bans party coordinated
spending from personal funds
expenditures for House
general election candidates
who exceed $50,000 volunt.
limit on personal/family
funds; fines candidates who
pledge to abide & exceed
Law bans personal use of
No provision
Codifies regulations on
campaign funds, as defined in
permissible use of campaign
FEC regulations
funds
INDEPENDENT EXPENDITURES
Prohibits cooperation &
No provision
Tightens definition of what
coordination of spenders with
constitutes coordination &
candidates
cooperation
Requires filing within 24
No provision
Increases frequency of
hours of $1000+ in last 20
disclosure of large amounts
days of election
close to election
Based on 1996 Colorado
No provision
Bans parties from making
ruling, parties may make
both coordinated & indep-
independent expenditures for
endent expenditures for a
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
No provision
Bans state/local party soft
allocation formulas in FEC
money for federal election
regulations for determining
activity: registration drives in
appropriate share of hard &
last 120 days of fed. election;
soft money for mixed
voter ID, get-out-the-vote
(federal-state-local) activities
drives, & generic activity if
federal candidate on ballot; &
messages referring to fed.
cand. with intent to influence
election; allows soft money
on solely non-federal
activities
Inter-state transfers
Bans transfers of non-
No provision
No provision
federally-permissible funds
between state parties
No provision
No provision
Bans use of soft money to
raise funds

CRS-4
H.R. 2183
H.R. 3526
Current law
(Hutchinson-Allen)
(Shays-Meehan)
Disclosure by national parties
No provision
Codifies & increases
(1991 FEC regs.)
disclosure requirements
Contributions to party
No provision
Removes building fund
building funds are exempt
exemption for national parties
from contribution definition
Candidate soft money raising
No provision
Bans fed. candidates or
Prohibits federal candidates
officials raising: soft money
& officials from raising soft
for fed. elections; money
money for federal election
from sources beyond fed.
activity (see above)
restrictions in nonfed. races;
& soft money for messages
referring to fed. candidates
Exempts federal officials’
Exempts federal officials’
own non-federal races
own non-federal races
Exempts attendance at state
Exempts attendance at state
party events in home state
party events
Non-party soft money
Per Beck & other rulings,
No provision
Requires union adequate
dues-paying non-union
notice to dues-paying non-
members have right to deny
members of rights to deny
political use of their funds
political use of funds
No union or corporate
No provision
Requires disclosure of all
disclosure for exempt
exempt activities (but incl.
activities, except for express
only those internal
advocacy internal
communications that refer to
communications above
fed. candidates), once over
$2,000 per election
$50,000 aggregate per year
Tax-exempt activity
No provision
No provision
Bans party fundraising or
giving to tax-exempt groups
ISSUE ADVOCACY
FECA NOT APPLICABLE
No provision
Expands express advocacy
* Full coverage (disclosure,
definition (hence triggers full
source limits, prohibitions)
FECA coverage) as
Based on court rulings, only
communication for or against
spending on communications
candidate by: explicit
that use express advocacy
language that in context can
language (e.g., “vote for” or
have no other reasonable
“defeat”) are subject fully to
meaning; paid broadcast
FECA
citing a candidate within 60
days of election; or
unambiguous advocacy, taken
as whole with limited
reference to external events

CRS-5
H.R. 2183
H.R. 3526
Current law
(Hutchinson-Allen)
(Shays-Meehan)
* Disclosure rules
Requires disclosure of
Requires full disclosure of
None
expenditures on radio or TV
spending & receipts, as
communications referring to
FECA-covered activity
House/Senate candidates (by
name, representation, or
likeness), once over $25,000
for 1, or $100,000 for all,
candidates per year
Exempts corporate/union
Exempts nonpartisan voter
member communications &
guides
nonpartisan voter drives
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 that
refers to clearly identified
candidate, is coordinated, &
seeks fed. election influence
FOREIGN NATIONAL MONEY
Bans contributions &
No provision
Bans direct or indirect foreign
fundraising from foreign
national contributions,
nationals in connection with
including soft money, in
U.S. elections; exempts
connection with any election
permanent resident aliens
(leaves green card exemption
(with green cards)
in law)
FEDERAL ELECTION COMMISSION
Disclosure
Optional electronic filing
Requires electronic filing by
Requires electronic filing by
all committees above $50,000
all committees over FEC-set
in receipts & expenditures per
level, with 24-hour Internet
year, using FEC-provided free
posting
software
Timing of candidate reports
Require monthly reports in
No provision
In election year: quarterly,
election year, but in lieu of
pre-primary, pre- & post-
Nov. & Dec. reports, require
general election
pre- & post-general & year-
end reports
Timing of non-candidate
Require monthly, pre-
No provision
reports
primary, & pre- & post-
In election year, either: (1)
general election reports in
quarterly, pre-primary, & pre-
election year, but in lieu of
& post-general election; or
Nov. & Dec. reports, require
(2) monthly, with pre- & post-
pre- & post-general & year-
general & year-end reports in
end reports
lieu of Nov. & Dec.
Itemization requirements
Excludes best efforts
- Bans candidate deposit of
Contributions of over $200
exemption regarding
over $200 contributions
must incl. name, address,
identification of occupation &
without required ID
occupation, & employer,
employer, for contributions
- Lowers itemization
unless best efforts are made
aggregating over $200 per
threshold to $50 for
to obtain information
year
contributions

CRS-6
H.R. 2183
H.R. 3526
Current law
(Hutchinson-Allen)
(Shays-Meehan)
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
FEC may initiate enforcement
No provision
Changes FEC criterion to
action with “reason to
“reason to investigate”
believe” a violation may have
standard
occurred
Penalties: maximums are
No provision
- Increases penalties for
prescribed in election law
violations
- Allows 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 Dept.
time
only if probable cause to
believe a violation has
occurred
MISCELLANEOUS
Bans solicitation of campaign
No provision
Includes raising soft money in
funds, as defined, from
ban on solicitation from
federal govt. buildings
government buildings
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 & 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
a Abbreviations used in these tables:
CPI = Consumer Price Index
FEC = Federal Election Commission
FECA = Federal Election Campaign Act
ID = identification
PAC = Political Action Committee