Campaign Finance Bills in the 107th Congress: Comparison of S. 22 (Hagel-Landrieu) with S. 27 (McCain-Feingold)

Campaign Finance Bills in the 107th Congress: Comparison of S. 22 (Hagel-Landrieu) with S. 27 (McCain-Feingold)

Order Code RS20813
Updated March 23, 2001
CRS Report for Congress
Received through the CRS Web
Campaign Finance Bills in the
107th Congress: Comparison of S. 22
(Hagel-Landrieu) with S. 27 (McCain-Feingold)
Joseph E. Cantor
Specialist in American National Government
Government & Finance Division
Summary
On March 19, 2001, the Senate began consideration of the McCain-Feingold
campaign finance reform bill. The bill–S. 27 (Bipartisan Campaign Reform Act of
2001)–was introduced on January 22, 2001 by Senators McCain, Feingold, Cochran et
al. It features a ban on the raising of soft money by national parties, a ban on the
spending of soft money by state and local parties on federal election-related activities (as
defined), and a disclosure requirement for electioneering messages not regulated by
federal election law, along with a ban on their funding from union or for-profit
corporation treasuries. Another bill receiving considerable Senate attention is S. 22
(Open and Accountable Campaign Financing Act of 2001), introduced on January 22,
2001 by Senators Hagel, Landrieu et al. It features limits on soft money donations to
national parties, increases in hard money contribution limits, and a requirement that
broadcasters make information available on groups engaging in issue advocacy. This
report provides a summary and comparison of these two measures, according to various
categories.1
S. 22 (Hagel-Landrieu) and S. 27 (McCain-Feingold) Bills Compared
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
Individual Contribution Limits (Hard Money)
To candidates: raises (from $1,000) to
No provision
$3,000 per election
1 Section numbers are provided for summary material, referring to all preceding information in that
column, until the preceding section reference.
Congressional Research Service ˜ The Library of Congress

CRS-2
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
No provision
To state parties: raises (from $5,000) to
$10,000 per year
To natl. party committees: raises (from
No provision
$20,000) to $60,000 per year
To PACs: raises (from $5,000) to $15,000
No provision
per year
Annual aggregate limit: raises (from
Annual aggregate limit: raises (from
$25,000) to $75,000
$25,000) to $30,000 (Sec. 102)
Indexes limits, as of 2003 (Sec. 203)
No provision
PAC Contribution Limits (Hard Money)
To candidates: raises (from $5,000) to
No provision
$7,500 per election
To natl. party committees: raises (from
No provision
$15,000) to $30,000 per year
To other PACs: raises (from $5,000) to
No provision
$7,500 per year
Indexes limits, as of 2003 (Sec. 203)
No provision
Party Contribution Limits (Hard Money)
To candidates: raises (from $5,000) to
No provision
$7,500 per election, or, for national party
committees, $15,000 per election
To Senate candidates from national and
No provision
senatorial committees combined: raises (from
$17,500) to $60,000 (in general election
year)
To PACs: raises (from $5,000) to $7,500
No provision
per year
Indexes limits, as of 2003 (Sec. 203)
No provision
Candidate Role (Hard Money)
No provision
Specifies permissible uses for, and bans
personal use of, campaign funds (Sec. 301)

CRS-3
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
Independent Expenditures (Hard Money)
No provision
Defines independent expenditure as
expressly advocating election/defeat of a
clearly identified candidate and not a
coordinated activity with a candidate, agent,
or anyone coordinating with candidate in that
election cycle (Sec. 211)
No provision
Requires 48 hour notice of expenditures of
$10,000 or more, up to 20 days before an
election (Sec. 212)
No provision
Bans party independent AND coordinated
expenditures (both) for candidate (Sec. 213)
Coordinated Activity (Hard or Soft Money)
No provision
Defines “contribution” to incl. coordinated
activity: anything of value provided in
connection with a federal candidate’s
election by anyone who coordinated with
candidate (or agent) in connection with
his/her election in that election cycle,
whether or not express advocacy (Sec. 214)
No provision
Coordinated activity includes payments:
(1) in cooperation, consultation, or concert
with, at request/suggestion of, or pursuant to
understanding with, a candidate, party, or
agent acting on behalf thereof;
(2) for production, dissemination, or
republication of candidate-prepared material,
except materials republished from
candidate’s website for less than $1,000;
(3) by spender who in that election cycle has
been employee, fundraiser, or agent of a
candidate in executive/policymaking role, or
has discussed campaign strategy/tactics
(non-incidentally) with candidate, agent, or
party coordinating with candidate, (i.e.,
advertising, message, resource allocation,
fundraising, campaign operations); or
(4) by spender who used professional
services of anyone who in that election cycle
has provided services (polling, media,
fundraising, campaign research, political
advice, or direct mail, except mailhouse
services) to candidate, directly or via party
No provision
Declares party expenditure for a
communication referring to a clearly
identified federal candidate, whether or not
express advocacy, to be in coordination with
party’s candidate, unless party certifies no
coordination

CRS-4
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
No provision
Deems coordinated activity as contribution
to, or expenditure by, a candidate (Sec. 214)
Party Soft Money
• Sets $60,000 annual limit on soft money
Prohibits national party committees from
receipt from any individual/entity by a
soliciting, receiving, directing, transferring,
national party committee (or entity it
or spending soft money, including an entity
establishes, maintains, finances, or controls)
established, financed, maintained, or
• Sets $60,000 annual limit on soft money
controlled by a national party committee and
donations by any individual/entity to all
an agent acting on behalf thereof
national party committees
• Contingent on Supreme Court review
• Indexes limit, based on 2001 (Sec. 203)
No provision
Prohibits spending of soft money for a
federal election activity by state/local party
committees, incl. entity established, financed,
maintained, or controlled by a state/local
party committee and agent acting on behalf,
or controlled by and acting on behalf of one
or more state/local candidates or officials
(permits state/local candidate principal
campaign committees to raise/ spend funds
under state law, if not for a federal election
activity referring to a clearly identified
federal candidate)
No provision
Defines federal election activity to include:
(1) voter registration drives in last 120 days
of a federal election;
(2) voter ID, get-out-the-vote drives, and
generic activity in connection with election in
which a federal candidate is on the ballot; (3)
public communications that refer to a clearly
identified federal candidate and promote,
support, attack, or oppose a candidate for
that office (whether or not it expressly
advocates a vote for/against); and (4)
services by state/local party employee who
spends 25%+ of paid time in month on
activities connected with federal election
No provision
Defines public communications as
communications by broadcast, cable,
satellite, newspaper, magazine, outdoor ads,
mass mailing (over 500 same or
substantially similar pieces mailed within 30
days of each other), or phone bank (over 500
same or substantially similar calls within 30
days of each other)
No provision
Allows state parties to spend money on
exclusively non-federal election activities
No provision
Prohibits party committees from using soft
money to raise funds for use even in part on
federal election activities

CRS-5
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
No provision
Prohibits party committees/agents from
raising money for, or giving to, any 501(c)
or 527 tax-exempt organization
No provision
Prohibits federal candidates, officeholders,
agents, or entities they establish, maintain,
finance, or control from raising soft money
in connection with a federal election (incl. a
federal election activity) or money from
sources beyond federal limits/prohibitions in
non-federal elections (Sec. 101)
Codifies FEC regulations requiring national
• Codifies FEC regulations requiring
party soft money disclosure (Sec. 102)
national party soft money disclosure
• Requires state/local party disclosure of
federal election activity (Sec. 103)
No provision
Ends building fund exemption (Sec. 101)
Non-Party Soft Money
No provision
Requires unions to give reasonable notice to
dues-paying non-members of rights to
disallow political use of funds and to
establish/implement an objection procedure
regarding such payments (Sec. 304)
Issue Advocacy
No provision
Defines electioneering communication as a
broadcast, cable, or satellite ad referring to a
clearly identified federal candidate, made
within 60 days of a general election or 30
days of a primary, to audience that includes
voters in that election (Sec. 201)
No provision
Bans funding of electioneering messages
with union/corporate funds; exempts funding
from 501(c)(4)s and 527s if funding is solely
from individuals (Sec. 203)
Requires broadcasters to keep and make
Requires disclosure of electioneering
available for public inspection records of
communications by any spender exceeding
time requests by candidates or entities whose
an aggregate of $10,000 per year in such
message relates to a political matter of
disbursements
national importance, incl. about a candidate,
federal election, or legislative issue of public
importance (Sec. 104)
Records to include: whether request was
Reports to include: spender ID, custodian of
accepted; rate charged; date/time message
books, and any controlling entity; principal
aired; class of time purchased; candidate and
place of business; ID of disbursements over
office, election, or issue referred to; and ID
$200; ID of donors of $1,000+ (either to
of purchaser (incl. officers of any non-
separate segregated fund devoted solely to
candidate entity) (Sec. 104)
such activities or to organization itself); and
election/candidates referred to (Sec. 201)
No provision
Electioneering communication coordinated
with candidate/agent/party is a contribution
to/expenditure by candidate (Sec. 202)

CRS-6
S. 22 (Hagel-Landrieu)
S. 27 (McCain-Feingold)
FEC: Enforcement and Disclosure
Indexes fines, retroactively (Sec. 302)
No provision
Requires candidate reports monthly: year of
No provision
election, quarterly: other years (Sec. 101)
Requires national party committees to file
No provision
monthly reports in all years (Sec. 101)
Requires FEC to post disclosed info. on
No provision
Internet within 24 hours of receipt (Sec. 103)
Requires FEC to give standardized software
No provision
at no cost to electronic filers (Sec. 105)
Requires Senate candidates to file reports
No provision
directly with FEC (Sec. 303)
Foreign Money
No provision
Bans direct/indirect contributions from
foreign nationals (incl. soft money), their
solicitation or receipt, or promise to make
them, in connection with any U.S. election or
to natl. party committee (permanent resident
alien exemption retained) (Sec. 303)
Miscellaneous
Adds party soft money to ban on solicitation
Bans solicitation or receipt of contributions,
of political donations from federal
incl. soft money, by federal officials and
government property (Sec. 301)
from anyone, in any federal government
building used for official duties (Sec. 302)
No provision
If any provision of Act or statute is held
unconstitutional, the remainder of Act and
statute would be unaffected, i.e., severability
clause (Sec. 401)