Campaign Finance Bills Passed in the 107th Congress: Comparison of S. 27 (McCain-Feingold), H.R. 2356 (Shays-Meehan), and Current Law
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Campaign Finance Bills Passed
in the 107th Congress: Comparison of
S. 27 (McCain-Feingold), H.R. 2356
(Shays-Meehan), and Current Law
February 20, 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
Campaign Finance Bills in the 107th Congress:
Comparison of S. 27 (McCain-Feingold), H.R. 2356
(Shays-Meehan), 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, 2001, after a two-week debate and adoption of 22
amendments, the Senate passed S. 27 by a vote of 59-41. Its companion, the ShaysMeehan 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, 2001, the bill was modified and offered as H.R. 2356. A
modified version of H.R. 2356 was offered on the House floor on February 13, 2002,
and after approval of four amendments and defeat of 11 others, the House passed
H.R. 2356, as amended, on February 14 by a vote of 240-189.
The two primary features of the bills are restrictions on party soft money and
issue advocacy. Generally, both 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. In a change from
earlier versions, the bills allow for the restricted use of soft money for federal election
activities by state and local parties. Regarding issue advertisements, both 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. Generally, the bills would prohibit unions and certain
corporations from spending treasury funds for such “electioneering communications”
and, for those individuals and groups permitted to finance such communications,
would require disclosure for disbursements of over $10,000, along with the identity
of donors of $1,000 or more.
Contents
Comparison of McCain-Feingold and Shays-Meehan Bills, as Passed,
and Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Hard Money Sources: Individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Hard Money Sources: Political Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Hard Money Sources: Candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Independent Expenditures (Hard Money) . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Coordination (Hard and Soft Money) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Soft Money: Party . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Issue Advocacy (Soft Money) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
FEC Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
FEC Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Foreign Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Notes to Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Common Abbreviations in Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Appendix 1. Senate Debate on and Amendments to S. 27
(McCain-Feingold) and S.J.Res. 4 (Hollings-Specter) . . . . . . . . . . . . 30
Amendments Accepted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Amendments Rejected, Tabled, or Withdrawn . . . . . . . . . . . . . . . . . 32
Amendment Superseded by Modification . . . . . . . . . . . . . . . . . . . . . 35
Amendments Submitted but Not Acted On . . . . . . . . . . . . . . . . . . . . 35
Appendix 2. House Debate on and Amendments to H.R. 2356
(Shays-Meehan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Amendments Accepted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Amendments Defeated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Campaign Finance Bills in the
107th Congress: Comparison of S. 27
(McCain-Feingold), H.R. 2356 (ShaysMeehan), and Current Law
This report summarizes and compares the two campaign finance reform bills that
have passed the House and Senate in the 107th Congress and current law (in most
cases, the Federal Election Campaign Act, ( FECA), 2 U.S.C. § 431 et seq.). The
two bills are S. 27 (McCain-Feingold), the Bipartisan Campaign Reform Act of 2001,
as amended and passed by the Senate on April 2, 2001, and its House companion bill,
H.R. 2356 (Shays-Meehan), the Bipartisan Campaign Finance Reform Act of 2002,
as amended and passed by the House on February 14, 2002.
Much of the ongoing campaign finance debate revolves around the issues of socalled 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 provides a detailed comparison of both bills and relevant current law,
organized according to major topics covered and arranged in side-by-side format. For
both bills, amendments adopted on the Senate and House floors are summarized in
italics, with citations to the amendments identified in table notes. For the House bill,
an asterisk (*) denotes provisions that were changed between the time the bill was
first introduced (June 28, 2001) and when it was offered to the House as the ShaysMeehan substitute amendment to H.R. 2356 (on February 12, 2002). Table 1 also
provides applicable bill section numbers, and, for existing law, U.S. Code (U.S.C.)
and Code of Federal Regulations (C.F.R.) citations and select 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.
Appendices 1 and 2, which are provided for legislative history purposes, set forth
an account of House and Senate consideration and summaries of amendments offered
in each chamber during floor debates. They are arranged according to whether they
were accepted or rejected (and, in the Senate table, merely offered); each description
provides a summary and an indication of any floor votes.
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.
CRS-2
Comparison of McCain-Feingold and Shays-Meehan Bills, as Passed, and Current Law
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Hard Money Sources: Individuals
Contributions to candidates:
$1,000 per candidate, per election; not indexed
[2 USC §441a(a)(1)(A)]
Contributions to state party committee:
$5,000 per year to federal account, not indexed
[2 USC §441a(a)(1)(C)]
Contributions to national party committee:
$20,000 per year to federal acct., not indexed
[2 USC § 441a(a)(1)(B)]
Aggregate contributions:
$25,000 per year to PACs, parties, and
candidates, not indexed [2 USC §441a(a)(3)]
Raises limit to $2,000 per candidate, per
election, indexed for inflation1 [Sec. 308]
Same as S. 27 25[Sec. 307]
Raises limit to $10,000 per year [Sec. 102]
Same as S. 27 [Sec. 102]
Raises limit to $25,000 per year, indexed for
inflation1 [Sec. 308]
Same as S. 27 [Sec. 307]
Raises limit to $37,500 per year (i.e., $75,000
for 2-year cycle), indexed for inflation1, 2
[Secs. 308]
Raises limit to $95,000 per 2-year cycle, with
sub-limits:
(a) $37,500 to all candidates;
(b) $57,500 to all PACs and parties (no more
than $37,500 of which is to state and local
parties and PACs); indexed [Sec. 307]*
CRS-3
S. 27 — As Passed
(McCain-Feingold)
Current Law
H.R. 2356 — As Passed
(Shays-Meehan)
Hard Money Sources: Political Parties
Special limit on contributions to Senate
nominees:
$17,500 in election year, by natl. and senatorial
party cttees. combined, not indexed
[2 USC §441a(h)]
Raises limit to $35,000 in year of election,
indexed for inflation1 [Sec. 308]
Same as S. 27 [Sec. 307]
Hard Money Sources: Candidates
Personal use of campaign funds:
Bans candidate personal use
[2 USC §439a]
Regulations enumerate personal uses
[11 CFR§113.1(g)]
Codifies FEC regulations on permissible uses
for campaign funds; retains ban on personal
use [Sec. 301]
Same as S. 27 [Sec. 301]
Candidate loans to campaign:
No rules regarding amount of candidate loans
that can be paid from post-election
contributions
Limits repayment of loans to $250,000, from
amounts contributed after election3 [Sec. 304]
Same as S. 27 [Sec. 304]
CRS-4
Current Law
Wealthy candidates:
Contribution limits are the same for all
candidates, regardless of whether opponents
spend large amounts from personal funds
[2 USC § 441a(a)(1)(A)]
(In Buckley v. Valeo (424 U.S. 1, 51-54
(1976)), Supreme Court struck down limits on
spending from personal funds by candidates)
S. 27 — As Passed
(McCain-Feingold)
In Senate elections:
- Raises limits on individual and party support
for Senate candidate whose opponent exceeds
designated level of personal campaign funding
- Creates threshold of $150,000 + 4¢ times
no. eligible voters in state
- Once “opposition personal funds amount”
(personal spending of candidate minus 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 contributions to opponent is
raised 6-fold; (c) 10 times, then limit on
individual contributions to opponent is raised
6-fold and lifts limit on party coordinated
expends. for opponent
- 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 [Sec. 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 [Sec. 318]
H.R. 2356 — As Passed
(Shays-Meehan)
In Senate elections:
Same as S. 27 [Secs. 304, 316]
In House elections:
- Raises limits on individual and party support
for House candidate whose opponent exceeds
$350,000 in personal campaign funding
- Once “opposition personal funds amount”
(personal spending of candidate minus that of
opponent) exceeds $350,000 threshold, then
limit on individual contributions to opponent
is tripled and limit on party coordinated
expenditures for opponent is lifted
- Same as S. 27
- Limits would be raised only to extent of
100% of total “opposition personal funds
amount”
- Same as S. 27 26 [Sec. 319]
CRS-5
S. 27 — As Passed
(McCain-Feingold)
Current Law
H.R. 2356 — As Passed
(Shays-Meehan)
Independent Expenditures (Hard Money)
Definition:
An expenditure by a person expressly
advocating election or defeat of a clearly
identified candidate, made without cooperation
or consultation with candidate (or authorized
committee or agent), and not made in concert
with, or at request or suggestion of, any
candidate (or agent or cttee.)
[2 USC §431(17)]
Defines independent expenditure as an
expenditure by a person that expressly
advocates election or defeat of a clearly
identified candidate, and that is not a
coordinated activity with a candidate, agent, or
someone who has engaged in coordinated
activity with the candidate [Sec. 211]
Defines independent expenditure as an
expenditure by a person for a communication
that expressly advocates the election or defeat
of a clearly identified candidate and is not made
in concert or cooperation with, or at request or
suggestion of a candidate, party, or agent [Sec.
211]*
Special disclosure rules:
Requires 24-hour notice of independent
expends. of $1,000 or more in last 20 days of
elctn., up to 24 hours prior to election
[2 USC § 434(c)(2)]
Adds requirement for a 48-hour notice of
independent expenditures of $10,000 or more,
up to 20 days before an election [Sec. 212]
Same as S. 27 [Sec. 212]
CRS-6
Current Law
Party spending for party candidates:
Parties may make expenditures in connection
with a general election of a 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 CO Republican Party, the coordinated party
expenditure limit was unconstitutional, and that
parties can make independent expenditures on
behalf of candidates; in Colorado II, (No. 00191 slip op. (June 25, 2001)), Court upheld the
constitutionality of the coordinated party
expenditure limit
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
After date of party nomination, prohibits party
from making both independent and coordinated
expenditures for a candidate, and requires
party to certify before making a coordinated
expenditure for a candidate that it hasn’t made
or won’t make independent expenditures for
that candidate [Sec. 213]
After date of party nomination, prohibits party
from making coordinated expenditures for a
candidate it has made independent expenditures
for and from making independent expenditures
for a candidate it has made coordinated
expenditures for
[Sec. 213]*
CRS-7
S. 27 — As Passed
(McCain-Feingold)
Current Law
H.R. 2356 — As Passed
(Shays-Meehan)
Coordination (Hard and Soft Money)
Definition:
Statute: FECA does not define “coordination”
or “coordinated activity” per se
FEC Regulations: New FEC coordination
rules define “coordinated general public
political communications” as coordinated
communications including clearly identified
candidates, paid for by persons other than
candidates or parties, including express or issue
advocacy; communication will be considered
coordinated if: it is made at request or
suggestion of candidate or party; candidate or
party had control or substantial decisionmaking authority; or candidate or party
engaged in substantial discussion or negotiation
with those involved in creating, producing,
distributing, or paying for the communication
[11 CFR §100.23 (2001)]
Statute: Defines “coordinated expenditure or
other disbursement” as a payment made in
concert or cooperation with, or at request or
suggestion of, or pursuant to any particular or
general understanding with a candidate or
party5 [Sec. 214]
No provision*
FEC Regulations:
- Repeals new FEC rules
FEC Regulations:
- Repeals new FEC rules as of date new regs.
are promulgated
- Directs FEC to promulgate new regulations
on coordinated communications by persons
other than candidates, authorized committees,
or parties
- Specifies new rules will not require agreement
or formal collaboration to establish
coordination
- Specifies rules will address issues of: (1)
republication of campaign material; (2)
common vendors; (3) prior employment status;
and (4) substantial discussion with candidate or
party [Sec. 214]*
- Directs FEC to promulgate new regulations
within 90 days
- Specifies new rules will not require explicit
collaboration or agreement to establish
coordination
- Specifies rules will address issues of: (1)
republication of campaign material; (2)
common vendors; (3) prior employment
status; (4) substantial discussion with
candidate/ party; and (5) impact of
coordinating internal communications on
“federal election activities”5 [Sec. 214]
CRS-8
Current Law
Consequences of coordination:
- Expenditures made in cooperation,
consultation, or concert with, or at the request
or suggestion of, a candidate or agents shall be
considered a contribution to candidate
[2 USC §441a(a)(7)(B)(i)]
S. 27 — As Passed
(McCain-Feingold)
Treats an “electioneering communication” that
is coordinated with a candidate, agent, or party
as a contribution to and expenditure by
candidate or party [Sec.202]
- Financing of dissemination, distribution, or
republication, in whole or part, of any
broadcast or materials prepared by candidate or
agents shall be considered an expenditure
subject to relevant limits
[2 USC§441a(a)(7)(B)(ii)]
(For discussion of express advocacy, see “Soft
Money: Party” and “Issue Advocacy (Soft
Money)” sections)
H.R. 2356 — As Passed
(Shays-Meehan)
Same as S. 27 [Sec. 202]
Treats expenditures by any person made in
cooperation, consultation, or concert with, or at
request or suggestion of, any party committee
as a contribution to that party committee [Sec.
214]
Includes in definition of “contribution”: any
coordinated expenditures or other
disbursements made in connection with
candidate’s campaign, and any expenditure or
disbursement made in coordination with party,
regardless of whether communication contains
express advocacy5 [Sec. 214]
No provision*
Soft Money: Party
National party committees:
May raise soft money (i.e., generally, funds
from sources or in amounts banned under
federal election law), so long as funds are
deposited in non-federal accounts, and may
distribute funds, in accord with FEC allocation
formulae [11 CFR §106.5]
Prohibits a national party committee, including
entities directly or indirectly established,
financed, maintained, or controlled by such
committee or agent acting on its behalf, from
soliciting, receiving, directing, transferring, or
spending soft money [Sec. 101]
Same as S. 27 [Sec. 101]
CRS-9
Current Law
State and local party committees:
May spend soft money on the state portion of
mixed (federal/state) activities, according to
detailed allocation requirements
[11 CFR §106.5]
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
In general, bans soft money spending for a
“federal election activity” by state/local party
committees, including an entity directly or
indirectly established, financed, maintained, or
controlled by a state or local party committee
(and agent acting on its behalf), or by an entity
directly or indirectly established, financed,
maintained, or controlled by one or more
state/local candidates or officials
In general, bans soft money spending for a
“federal election activity” by state/local party
committees, including an entity directly or
indirectly established, financed, maintained, or
controlled by a state or local party committee
(and agent acting on its behalf), or by an
association or group of state/local candidates or
officials
But permits authorized campaign cttee. of
state/local candidate to raise and spend funds
under state law if not for “federal election
activity” that “refers” to clearly identified
federal candidate
Prohibits state/local candidates from using soft
money for public communications that
promote/attack a clearly identified federal
candidate, but exempts communications
referring to a federal candidate who is also a
state/local candidate
CRS-10
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
But allows a state, district, or local party
committee to use funds raised under state law
for allocable share (at FEC-determined
ratios) of a voter registration drive in last 120
days of a federal election, voter ID, GOTV, &
generic activity, if it: (1) does not refer to a
federal candidate; and (2) takes no donations
over $10,000 a year (or less, if state law so
limits) for such activity6 [Sec. 101]
But allows state, district, or local party cttee. to
use some funds raised under state law for an
allocable share (at FEC-determined ratios) of a
voter registration drive in last 120 days of a
federal election, voter ID, GOTV, and generic
activity, if it: (1) does not refer to a federal
candidate; (2) does not pay for a broadcast,
cable, or satellite communication (unless it
refers solely to state or local candidates); (3)
takes no more than $10,000 a year (or less, if
state law so limits) from any person (incl. an
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 or indirectly
establish, finance, maintain, or control)
Prohibits funds for these accounts from being
solicited, received, directed, transferred, or
spent by or in name of natl. party, fed.
candidate or official, or joint fundraising
activities by two or more state or local party
committees [Sec. 101]*
CRS-11
Current Law
Federal or non-federal activity: FEC allctn.
rules offer guidance in determining if activity is
fed. or non-fed. elctn. related, by such means as
“ballot composition” (for administration and
generic voter drives), “time and space” allotted
in a communication, etc. [11 CFR §106.1]
Definition of activity generally triggering
application of federal elctn. law – Express
advocacy: Sup. Court, in Buckley v. Valeo
(424 U.S. 1, 44 (1976)) and FEC v. Mass.
Citizens for Life (479 U.S. 238, 249 (1986)),
generally construed fed. campaign law to reach
only funds used for indpt. communications by
non-political cttees. that incl. express words
advocating elctn./defeat of clearly identified
cand.; in lower courts, prevailing view is,
generally, that regulation of such
communications that do not contain specific
express advocacy words (or “magic words,”
e.g., “vote for,” “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
S. 27 — As Passed
(McCain-Feingold)
“Federal election activity” defined to include:
(1) voter registration drives in last 120 days of
a federal election; (2) voter identification,
GOTV drives, and generic activity in
connection with an 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 (regardless of whether they expressly
advocate a vote for or against); or (4) services
by a state or local party employee who spends
at least 25% of paid time in a month on
activities in connection with a federal election
[Sec. 101]
H.R. 2356 — As Passed
(Shays-Meehan)
Same as S. 27 [Sec. 101]
CRS-12
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
FEC v. Furgatch (807 F.2d 857 (9th Cir.
1987), cert. denied, 484 U.S. 850 (1987)),
which has emerged as a minority view,
generally held that a communication will be
considered issue advocacy if its message is
unmistakable and unambiguous, suggestive of
only one plausible meaning; if it presents a
clear plea for action; and it is clear what action
is advocated, i.e., speech cannot be express
advocacy when reasonable minds could differ
as to whether it encourages a vote for or
against a candidate or encourages the reader to
take some other action
Provides alternative definition of “public
communication” (third type of “federal
election activity”) in the event that the first
definition is ruled unconstitutional, based on
FEC v. Furgatch (807 F.2d 857 (9th Cir.
1987), cert. denied, 484 U.S. 850 (1987)) (i.e.,
communication promoting, supporting,
attacking, or opposing a candidate, regardless
of whether it advocates a vote for or against a
candidate, and is suggestive of no plausible
meaning other than an exhortation to vote for
or against a candidate)9 [Sec. 101]
No provision
Public political communications:
Defined by new regulations as those made
through broadcast (including cable),
newspaper, magazine, outdoor advertising
facility, mailing or any electronic medium,
including Internet or Web site, with intended
audience of over 100 people
[11 CFR §100.23(e)(1) 2001]
“Public communications” defined as those
made by broadcast, cable, satellite, newspaper,
magazine, outdoor advertising, mass mailing
(over 500 identical or substantially similar
pieces mailed within 30 days of each other), or
phone bank (over 500 identical or substantially
similar calls made within 30 days of each
other) [Sec. 101]
Same as S. 27 [Sec. 101]
Defines generic campaign activity as one that
promotes a party but not a federal or nonfederal candidate [Sec. 101]
Same as S. 27 [Sec. 101]
State parties may spend soft money on
activities that are not “federal election
activities,” including: public communications
referring solely to state/local candidates;
contributions to state/local candidates; state,
district, or local convention costs; grassroots
materials only depicting state/local candidates;
and state/district/local party bldg. costs
[Sec. 101]
State parties may spend soft money on
activities that are not “federal election
activities,” including: public communications
referring solely to state/local candidates;
contributions to state/local candidates; state,
district, or local convention costs; and
grassroots materials only depicting state/local
candidates 27[Sec. 101]*
Generic activity:
No provision
State/local parties may spend money on federal
and non-federal races, if they allocate funds
between hard and soft money
[11 CFR §106.5]
CRS-13
Current Law
Fundraising costs:
Parties may allocate costs
[11 CFR §106.5(f)]
Support for tax-exempt groups:
No restrictions on parties’ ability to support
tax-exempt groups
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Prohibits party committees from using soft
money to raise funds for use at least in part on
“federal election activities” [Sec. 101]
Same as S. 27 [Sec. 101]
Prohibits party committees or agents from
raising money for, or giving or directing money
to, an Internal Revenue Code §501(c) taxexempt org. or a §527 tax-exempt organization
(unless it is also a fed. political committee)
[Sec. 101]
Prohibits party committees or agents from
raising money for, or giving or directing money
to, an Internal Revenue Code §501(c) taxexempt org. that makes disbursements in
connec. with a fed. election (incl. a “federal
election activity”) or a §527 tax-exempt org. (if
not a fed. political cttee.) [Sec. 101]
CRS-14
S. 27 — As Passed
(McCain-Feingold)
Current Law
Federal candidates/officeholders:
- Role in raising soft money:
May participate in fundraisers without
restriction
Federal candidates/officeholders:
- Role in tax-exempt fundraising:
No restrictions
H.R. 2356 — As Passed
(Shays-Meehan)
Prohibits federal candidates, officeholders,
agents, or entities they directly or 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-fed. elctns.
Same as S. 27
Ban does not apply to an individual who is also
a state/local candidate, for activity allowed
under state law and is not for a “federal
election activity” that refers to clearly identified
federal candidate; does not prohibit appearing,
speaking, or being featured guest at state/local
party fundraiser [Sec. 101]
Ban does not apply to an individual who is or
was also a state or local candidate, for activity
allowed under state law and refers only to the
state/local candidate or opponents; does not
prohibit appearing, speaking, or being featured
guest at state/local party fundraiser [Sec. 101]*
No provision
Regardless of other soft money restrictions,
allows fed. cands./officials to make: (a)
unrestricted general solicitations on behalf of
501(c)s involved in fed. elctns. where
solicitation doesn’t specify how funds will be
used, unless org.’s principal purpose is voter
registration in last 120 days of fed. elctn.,
GOTV, voter ID, or generic activity where a
fed. cand. is on ballot; and (b) solicitations for
501(c)s involved in fed. elctns. specifically for
such activities, or for general use by 501(c)
whose principal purpose is those activities,
with solicitations only to individuals, subject to
a $20,000 per donor limit [Sec. 101]*
CRS-15
Current Law
S. 27 — As Passed
(McCain-Feingold)
Disclosure by national parties:
Regulations require disclosure of all receipts
and disbursements [11 CFR §104.8, 104.9]
Codifies FEC regulations on disclosure of all
activity–federal and non-federal7 [Sec. 103]
Same as S. 27 [Sec. 103]
Requires disclosure of all “federal election
activities” by state and local party committees
(including entities directly or indirectly
established, financed, maintained, or controlled
by either state/local party committee and agent
or by state or local candidates and officials)
Requires disclosure of “fed. elctn. activities” by
state/local party committees incl. entities
directly or indirectly established, financed,
maintained, or controlled by either state/local
party committee and agent or by state/local
candidates and officials, subject to $5,000
threshold in aggregate activity per year
except by authorized campaign committees of
state/local candidates, raising and spending
funds under state law, if not for “federal elctn.
activity” that “refers” to a clearly identified
federal candidate [Sec. 103]
Disclosure must include all amounts raised and
spent by special soft money accounts that are
allowed to be used for “federal election
activities” [Sec. 103]*
Ends building fund exemption [Sec. 103]
Same as S. 27 [Sec. 103]
State/local party disclosure:
Required for activity by federal accounts only
[2 USC § 434]
All mixed activities must be funded through
federal accounts [11 CFR § 106.5(a)]
Building funds:
Donations to national/state party building funds
are exempt [2 USC§431(8)(B)(viii)]
H.R. 2356 — As Passed
(Shays-Meehan)
CRS-16
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Issue Advocacy (Soft Money)
Definition of activity generally triggering
application of federal election lawExpress advocacy: Supreme Court, in
Buckley v. Valeo (424 U.S. 1, 44 (1976)) and
FEC v. Massachusetts Citizens for Life (479
U.S. 238, 249 (1986)), generally construed
federal campaign law to reach only funds used
for independent communications by nonpolitical committees that include express words
of advocacy of election or defeat of a clearly
identified candidate; prevailing view in lower
courts is that, generally, regulation of such
communications that do not contain specific
express words of advocacy (also referred to as
the “magic words,” e.g., “vote for” or “defeat”)
is unconstitutional; FEC, therefore, has had
some difficulty in enforcing its more
encompassing regulation, which includes a
“reasonable person” standard for determining
whether such communications constitute
“express advocacy”
[11 CFR §100.22]
“Electioneering communication”: Defined as
a broadcast, cable, or satellite advertisement
that “refers” to a clearly identified federal
candidate, made within 60 days of a general
election or 30 days of a primary for that federal
office, to an audience that includes voters in
that election
“Electioneering communication”: Defined as
a broadcast, cable, or satellite advertisement
that “refers” to a clearly identified federal
candidate, made within 60 days of a general
election or 30 days of a primary, and, if for
House or Senate elections, “is targeted to the
relevant electorate”
Exempts news events, “expenditures,” and
“independent expenditures”
Exempts news events, “expenditures,”
“independent expenditures,” debates, and
others by FEC regulation
Provides alternative definition of
“electioneering communication,” in the event
that the first definition is ruled
unconstitutional, based on FEC v. Furgatch
(807 F.2d 857 (9th Cir. 1987), cert. denied,
484 U.S. 850 (1987)) (i.e., communication
promoting, supporting, attacking, or opposing
a candidate, regardless of whether it expressly
advocates a vote for or against a candidate,
and is suggestive of no plausible meaning
other than an exhortation to vote for or
against a candidate); nothing in provision
alters 11 CFR 100.22(b), FEC regulation
defining express advocacy9 [Sec. 201]
Same as S. 27 [Sec. 201]
CRS-17
Current Law
Targeted communications:
Not defined
Disclosure:
Communications by non-political cttees. that
avoid explicit advocacy language are outside
purview of, and hence not subject to, FECA
disclosure; but spending on such activities may
be disclosed if group is “political organization”
under Internal Rev. Code
[26 USC §527]
S. 27 — As Passed
(McCain-Feingold)
(In context of electioneering communications
prohibited by 501(c) and 527 corporations:)
“Targeted communication” defined as an
electioneering communication that is
distributed from TV/radio broadcast station or
cable or satellite service whose audience
“consists primarily” of residents of state for
which candidate is seeking office11 [Sec. 204]
Requires disclosure to FEC of disbursements
for “electioneering communications” by any
spender exceeding an aggregate of $10,000 per
year in such disbursements, within 24 hours of
the first and each subsequent $10,000
disbursement [Sec. 201]
H.R. 2356 — As Passed
(Shays-Meehan)
“Targeted to the relevant electorate” defined
as a communication which can be received by
50,000 or more persons in state or district
where Senate or House election, respectively, is
occurring [Sec. 201]
Requires disclosure to FEC of disbursements
for direct costs of producing and airing
“electioneering communications” by any
spender exceeding $10,000 annual aggregate in
such disbursements, within 24 hours of the first
and each subsequent $10,000 amt.
[Sec. 201]
CRS-18
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
For “electioneering communications”:
- Identification of spender, custodian of books,
and any entity exercising control over activity
- principal place of business
- identification of disbursements of over $200
- identification of donors of $1,000 or more
(either to a separate segregated fund devoted
exclusively to such activities or, if none, to
organization itself)
For “electioneering communications”:
- Identification of spender, custodian of books,
and any entity exercising control over activity
- principal place of business
- identification of disbursements of over $200
- identification of donors of $1,000 or more
(either to a separate segregated fund devoted
exclusively to such activities, with funds only
from U.S. citizens or nationals or permanent
resident aliens, or, if no separate segregated
fund, to organization itself)
- notation as to election and candidates to
which communications pertain [Sec. 201]
Contents of disclosure:
Only for activities meeting express advocacy
standard and for FECA-defined political
committees – Statement of org. identifies
name of spender, sponsor (if any), treasurer,
custodian of books, and banks
[2 USC § 433]
Periodic disclosure reports list aggregate cash
on hand, receipts, expenditures, transfers,
loans, rebates, refund dividends, and interest
(and, for presidential candidates, public funds);
itemized ID on contributions received and
expenditures made of over $200 per year, with
name, address, occupation, and principal place
of business of donor or recipient
For persons other than political committees,
disclosure requirements are triggered once
independent expenditures over $250 in a
calendar year are made [2 USC § 434]
- notation as to election and candidates to
which communications pertain [Sec. 201]
CRS-19
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Bans funding of “electioneering
communications” with funds from union or
certain corporate funds; but exempts Internal
Revenue Code §501(c)(4) or §527 tax-exempt
corporations making “electioneering
communications” with funds solely donated by
individuals, who are U.S. citizens or
permanent resident aliens10 [Sec. 203],
unless a communication is “targeted,” i.e., it
was distributed from a broadcaster or cable
or satellite service whose audience “consists
primarily” of residents of the state for which
the candidate is running for office11 [Sec. 204]
Bans funding of “electioneering
communications” with funds from union or
certain corporate funds; but exempts IRC
§501(c)(4) or §527 tax-exempt corporations
making “electioneering communications” with
funds solely donated by individuals who are
U.S. citizens, nationals, or permanent resident
aliens [Sec. 203],
unless a communication is a “targeted”
communication, i.e., it was distributed from a
broadcaster or cable or satellite service and is
received by 50,000 or more persons in state or
district where Senate or House election,
respectively, is occurring [Sec. 204]
Corporations and labor unions:
FECA bans union and corporate general
treasury spending to influence federal elections,
subject to Supreme Court imposed express
advocacy standards [2 USC §441b(a)]
In FEC v. Massachusetts Citizens for Life
(MCFL) (479 U.S. 238, 259 (1986)), Court
held that ban on corporate general treasury
spending cannot be constitutionally applied to
non-profit political or ideological corporations
that do not accept donations from for-profit
corporations and unions and whose members
have 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-20
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Coordination–
FECA does not define “coordination” or
“coordinated activity” per se, but:
- Expenditures made in cooperation,
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 decisionmaking 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)]
Treats an “electioneering communication” that
is coordinated with a candidate, agent, or party
as a contribution to and expenditure by
candidate or party [Sec. 202]
Same as S. 27 [Sec. 202]
CRS-21
Current Law
Broadcast disclosure:
- Attribution: Fed. Communications Act
imposes general requirement that political
radio/TV ads incl. notice of who paid for ads
[47 USC § 317]
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
(See discussion under “Advertising” section)
(See discussion under “Advertising” section)
Requires broadcasters to maintain and make
available for public inspection records of
broadcast time requests by cands. or by other
entities whose messages relate to political
matters of natl. importance, incl. messages
about a legally qualified cand., a fed. election,
or a legislative issue of public importance;
requires records to incl.: whether request was
accepted; rate charged; date and time
message aired; class of time purchased; ID of
cand. and office, election, or issue referred to;
and identity of purchaser, including officers of
any non-candidate entity12 [Sec. 504]
Same as S. 27 [Sec. 504]
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 corporation, committee,
association, or unincorporated group, FCC
regs. also require broadcaster to maintain
records of group’s governing personnel,
available for public inspection
[47 CFR § 73.1212]
CRS-22
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
FEC Disclosure
- Requires all reports filed electronically to be
posted on FEC 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)]
Requires all reports filed with FEC to be
posted on Internet and available for inspection
within 48 hours, or 24 hours if filed
electronically13 [Sec. 501]
Same as S. 27 [Sec. 501]
No provision
Requires FEC to maintain central Web site of
all publicly available election-related
reports13 [Sec. 502]
Same as S. 27 [Sec. 502]
No provision
Requires FEC to develop and provide
standardized software for filing reports
electronically, and requires candidates’ use of
such software14 [Sec. 307]
Same as S. 27 [Sec. 306]
Requires candidates to file monthly reports in
election years and quarterly reports in nonelection years12 [Sec. 503]
Requires candidates to file quarterly reports in
non-election years12 [Sec. 503]*
Requires national party committees to file
monthly reports in all years12 [Sec. 503]
Same as S. 27 [Sec. 503]
Filing schedule for candidates:
Principal campaign cttees. of cands. must file
quarterly, pre-elctn., and, for general, postelection 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. parties) may
file: (a) quarterly, pre-elctn., and, for general,
post-elctn. reports in elctn. yrs., and semiannual reports in non-election years; or (b)
monthly reports [2 USC §434(a)]
CRS-23
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
FEC Enforcement
Criminal penalties:
For knowing and willful violations involving
contributions/expenditures of $2,000 or more
per year: a fine equaling the greater of $25,000
or 300% of amount involved or up to one year
in prison, or both
[2 USC §437g(d)(1)(A)]
Statute of limitations:
Three years for criminal violations of FECA
[2 USC §455(a)]
Sentencing guidelines:
No provision
Increases criminal penalties for knowing and
willful violations involving contribution/
expenditure/donation amounts aggregating
from $2,000 to $25,000 in a year: a fine under
Title 18 (USC) or up to one year in prison, or
both; for knowing and willful violations
involving amts. aggregating $25,000 or more:
a fine under Title 18 or up to five years in
prison, or both15 [Sec. 314]
Same as S. 27 [Sec. 312]
Changes to five years, for criminal violations
of FECA15 [Sec. 315]
Same as S. 27 [Sec. 313]
Directs U.S. Sentencing Commission to
promulgate guidelines and make legislative or
administrative recommendations regarding
penalties for violating fed. elctn. law, per
specified considerations: (1) reflect serious
nature; (2) enhancement for foreign national
violation, large no. of illegal transactions,
large dollar amount of violations, misuse of
govt. funds, or intent to gain fed. govt.
benefits; (3) enhancement for cand. or high
campaign official; (4) assure consistency with
FEC regs.; (5) acct. for aggravating or
mitigating circumstances; and (6) comply with
purposes of 18 USC §3553(a)(2) 15 [Sec. 316]
Directs U.S. Sentencing Commission to
promulgate guidelines and make legislative or
administrative recommendations regarding
penalties for violating fed. elctn. law, per
specified considerations: (1) reflect serious
nature; (2) enhancement for foreign national
violation, large no. of illegal transactions, large
dollar amount of violations, misuse of govt.
funds, or intent to gain fed. govt. benefits;
(3) assure consistency with FEC regs.; (4) acct.
for aggravating or mitigating circumstances;
and (5) comply with purposes of 18 USC
§3553(a)(2) [Sec. 314]*
CRS-24
Current Law
Penalties for violating ban on contributions
made in the name of another:
No specific penalties
S. 27 — As Passed
(McCain-Feingold)
Civil: Imposes penalties, for knowing and
willful violations, of between 300% of
violation amount and the greater of $50,000
or 1000% of violation amt.
Criminal: For knowing/willful violations in
amts. of over $10,000, imposes penalties of
two years in prison for up to $25,000 violation
amt., or fine of between 300% of violation
amt. and the greater of $50,000 or 1000% of
violation amt., or prison and fine16 [Sec. 317]
H.R. 2356 — As Passed
(Shays-Meehan)
Same as S. 27 [Sec. 315]
Advertising
Lowest unit rate (LUR):
Broadcasters must sell time to candidates
during last 45 days of a primary and 60 days of
a general election at LUR for same class and
amount of time for same period
[47 USC § 315(b)]
Makes TV, cable, and satellite LUR broadcast
time non-preemptible, with rates based on
comparison to prior 365 days; requires such
rates to be available to parties buying time on
behalf of candidates; and provides for random
audits to insure compliance17 [Sec. 305]
No provision 28
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 unit rate
(LUR) ads
Requires federal candidate broadcast ads that
are sold at lowest unit rate and that include
direct reference to opponents to include
candidate photo or image on TV and a
statement of cand. approval (printed on TV
and spoken by cand. on radio)19 [Sec. 306]
Same as S. 27 [Sec. 305]
CRS-25
S. 27 — As Passed
(McCain-Feingold)
Current Law
Sponsor Identification:
Public political advertisements, from
expenditures by any person, incl. express
advocacy, or those containing contribution
solicitations, must state clearly who paid for
communication and whether a candidate
authorized it [2 USC §441d]
- Adds requirement for sponsor ID by political
committees for any public political advertising
(including “electioneering communications”)
- Requires specific minimal standards to
enhance visibility of such identification in the
communication, including an audio statement
of candidate or sponsor approval in TV and
radio ads; also in TV ads, requires a written
statement of responsibility that appears in a
clearly readable manner, with a reasonable
degree of color contrast, for at least four
seconds 20 [Sec. 313]
H.R. 2356 — As Passed
(Shays-Meehan)
- Same as S. 27
- Requires specific minimal standards to
enhance visibility of such identification in the
communication, including an audio statement
of candidate or sponsor approval in TV and
radio ads; also in TV ads, requires a written
statement of responsibility that appears in a
clearly readable manner, with a reasonable
degree of color contrast, for at least four
seconds, and is conveyed in an unobscured,
full-screen view of candidate/sponsor (or with
image and voice-over thereof) [Sec. 311]*
Foreign Money
Prohibits direct or indirect contributions or
anything of value, or their solicitation, from
foreign nationals, in connection with election to
any political office; exempts permanent
resident aliens [2 USC §441e]
Bans direct or indirect contributions from
foreign nationals (incl. soft money), or their
solicitation or receipt, or any promise to make
such donations, in connection with any U.S.
election or to a natl. party committee (retains
permanent resident alien exemption) [Sec. 303]
Bans direct or indirect contributions from
foreign nationals (incl. soft money), or their
solicitation or receipt, or any promise to make
such donations, in connection with any U.S.
election, to a natl. party committee, or for any
expenditure, disbursement, or independent
expenditure for an “electioneering
communication” (retains permanent resident
alien exemption) [Sec. 303]
No provision
Clarifies that ban does not apply to U.S.
nationals [Sec.317]
CRS-26
S. 27 — As Passed
(McCain-Feingold)
Current Law
H.R. 2356 — As Passed
(Shays-Meehan)
Miscellaneous
Fundraising on govt. property:
Bans solicitation or receipt of contributions, as
defined by FECA, in any room or building used
by federal officials or employees to discharge
official duties [18 USC § 607]
Inaugural committees:
Donations to presidential inaugural committees
are not considered contributions under FECA
[See, e.g., FEC Advisory Opinion 1980-144]
Fraudulent misrepresentation:
Bans candidates’ fraudulent misrepresentation
on a matter that is damaging to other
candidates or parties [2 USC §441h]
Contributions by minors:
No different treatment for minors and adults
No provision
Bans solicitation or receipt of contributions,
including soft money, from anyone or by
federal officials, while in any federal
government building used to discharge official
duties [Sec. 302]
Same as S. 27 [Sec. 302]
- Requires FEC disclosure of over-$200
donations to presidential inaugural
committees within 90 days of event
- Bans foreign national donations21 [Sec. 310]
Same as S. 27 [Sec. 308]
- Prohibits fraudulent misrepresentation in the
solicitation of campaign funds
- Bans knowing and willful participation in
conspiracy to engage in such violations 22
[Sec. 311]
Same as S. 27 [Sec. 309]
No provision
Bans contributions to candidates and donations
to parties by individuals 17 years of age and
younger [Sec. 318]
GAO Study:
Directs GAO to study and report to Congress
statistics for and effects of public funding
systems in Arizona and Maine23 [Sec. 312]
Same as S. 27 [Sec. 310]
CRS-27
Current Law
S. 27 — As Passed
(McCain-Feingold)
H.R. 2356 — As Passed
(Shays-Meehan)
Expedited review:
Provides for expedited judicial review by
appropriate district court, certifying all
constitutional questions, to the court of appeals
for the circuit involved, sitting en banc [2 USC
§ 437h] (Prior to 1988 amendments, FECA
also provided expedited, direct appeal to U.S.
Supreme Court) [P.L.100-352]
Provides for expedited review to the U.S.
District Court for D.C. (and exclusive venue)
for declaratory judgment and injunctive relief;
provides direct appeal to the U.S. Supreme
Court from any final order or judgment; and
provides for expedited consideration by both
courts24 [Sec. 403]
Provides for expedited review to the U.S.
District Court for D.C. (and exclusive venue)
for declaratory judgment and injunctive relief
on constitutional grounds; provides direct
appeal to the U.S. Supreme Court from any
final order or judgment; and provides for
expedited consideration by both courts
Provides if any action is brought for
declaratory or injunctive relief challenging the
constitutionality of the Act, it shall be filed in
U.S. District Court for D.C. and heard by a 3judge court; a copy of the complaint shall be
delivered promptly to the Clerk of the House
and the Secretary of the Senate; a final decision
shall be reviewable only by direct appeal to the
U.S. Supreme Court, (notice of appeal to be
filed within 10 days and jurisdictional
statement to be filed within 30 days); expedited
consideration to be provided by both courts;
and right of intervention provided to Members
of the House and Senate
[Sec. 403]*
Partial Invalidity:
If any provision of the Act, or its application to
any person or circumstance, is held invalid, the
validity of the remainder and its application to
other persons and circumstances shall not be
affected. [2 USC § 454]
Severability:
If any provision of the Act or its amendments,
or its application to any person or
circumstance, is held unconstitutional, the
remainder of the Act and its amendments, and
its application to any person or circumstance,
shall not be affected by the holding [Sec. 401]
Same as S. 27 [Sec. 401]
CRS-28
S. 27 — As Passed
(McCain-Feingold)
Current Law
Effective date:
30 days after enactment, unless otherwise
provided [Sec. 402]
H.R. 2356 — As Passed
(Shays-Meehan)
Effective date:
Generally: Nov. 6, 2002, unless otherwise
provided *
Transition rules for soft money:
- Prior to Jan. 1, 2003, parties may spend soft
money raised before effective date to retire
outstanding debts and obligations in connection
with elections held through Nov. 5, 2002,*
provided that no soft money is used to repay
hard money debts 29
- At no time after effective date may national
parties use soft money to defray costs of
construction or purchase of a party office
building or facility 27 [Sec. 402]
No provision
No provision
Requires FEC to promulgate regulations within
90 days of enactment to carry out provisions of
Title 1 (on soft money) and within 270 days to
carry out other provisions of Act [Sec. 402]*
CRS-29
Notes to Table
Senate bill:
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)
House bill:
25
Wamp amendment (no. 12) brought limit for contributions to House candidates in line with
the Shays-Meehan substitute’s increase for presidential and senatorial candidates.
26
Capito amendment (no. 10) added new section to assist House candidates with wealthy
opponents, comparable to the Shays-Meehan substitute’s provisions for Senate candidates.
27
Kingston amendment (no. 25) struck the Shays-Meehan substitute’s exemption of state and
local party building costs from the “federal election activity” definition, and removed the
substitute’s provision allowing soft money raised through the effective date to continue to be
used indefinitely to pay for national party building costs.
28
Green amendment (no. 11) struck Shays-Meehan substitute’s requirement that lowest unit
rate be provided to candidates at more favorable terms and be extended to political parties.
29
Meehan motion to recommit with instructions, clarified that soft money used for debt
repayment after the effective date shall not be used to repay hard money debts.
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)
CRS-30
Appendix 1. Senate Debate on and Amendments to
S. 27 (McCain-Feingold) and S.J.Res. 4 (Hollings-Specter)
Supporters of McCain-Feingold sought an early debate and vote on the issue,
and, on January 26, 2001, reached an agreement with then-Majority Leader Lott for
a two week Senate debate in mid- or late-March. On February 6, two unanimous
consent agreements were approved: the first committed the Senate to begin debating
McCain-Feingold on March 19 or 26, with floor amendments allowed; the second
agreement committed the Senate to consider the Hollings-Specter constitutional
amendment to allow mandatory campaign spending limits, immediately following
disposition of McCain-Feingold. Senate debate began March 19, and after a twoweek debate, S. 27 was passed by the Senate on April 2 by a vote of 59-41. As
passed, S. 27 included 22 amendments offered on the floor; 16 other amendments
were rejected during the two-week debate. On March 26, the Senate debated
S.J.Res. 4 and defeated it by a 40-56 vote. On May 15, the Senate revisited the issue
when it passed a Sense of the Senate resolution instructing the Secretary of the Senate
to engross S. 27 and send it to the House; the vote (on S.Amdt. 477) was 61-39. On
May 22, the bill was sent to the House, where it was referred to the Committees on
House Administration, Energy and Commerce, and the Judiciary.
Amendments Accepted.
Domenici (S.Amdt. 115) – to raise limits on contributions to Senate candidate whose opponent
exceeds a designated level of personal funding in his or her campaign; to limit repayment of
candidate loans to campaign to $250,000, with amounts contributed after the election.
Offered and Approved (70-30), March 20
Torricelli (S.Amdt. 122) – to make broadcast time purchased at lowest unit rate nonpreemptible and to require such rates to be available to political parties buying time on behalf
of candidates. Offered March 20. Approved (70-30), March 21.
Cochran (S.Amdt. 137), as modified – to: (1) require all reports filed with FEC to be posted
on Internet and available for inspection within 48 hours (24 if filed electronically); and (2)
require FEC to maintain a central web site of all election-related reports. Offered March 22.
Approved by voice vote, March 22.
Wyden-Collins (S.Amdt. 138) – to require candidates to appear personally in lowest unit rate
broadcast ads that refer to opponents. Offered March 22. Approved by voice vote, March
22.
Nickles-Gregg (S.Amdt. 139) – to strike Beck provision in McCain-Feingold bill. Offered
March 22. Approved (99-0), March 22.
Landrieu (S.Amdt. 124), as modified – to require FEC to develop and provide standardized
software for filing reports electronically. Offered March 21. Approved by voice vote, March
22.
Wellstone (S.Amdt. 145) – to remove exemption in McCain-Feingold for electioneering
communications by 501c(4) or 527 organizations, as it applies to “targeted communications”
(i.e., electioneering communications broadcast by TV, radio, cable, or satellite, to voters of
state in which a clearly identified federal candidate seeks office). Offered March 26.
Approved (51-46), March 26.
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Hagel (S.Amdt. 146–Division 2: Subtitle B–Increased Disclosure) – to codify FEC
regulations requiring disclosure of national party soft money receipts and disbursements; to
require candidates to file monthly reports in election years and quarterly reports in nonelection years, and require national party committees to file monthly reports in all years; to
require broadcasters to maintain and make available for public inspection records of broadcast
time requests by candidates or by other entities whose message relates to political matters of
national importance, including about a legally qualified candidate, a federal election, or a
legislative issue of public importance; records must include: whether request was accepted;
rate charged; date and time message aired; class of time purchased; identification of candidate
and office, election, or issue referred to; and identity of purchaser (including officers of any
non-candidate entity). Offered March 26. Motion to table Division 2 defeated (100-0), March
27. Division 2 approved by voice vote, March 27.
Thompson, as modified (S.Amdt. 149) – to raise limit on individual contributions to
candidates to $2,000 per candidate, per election, and to national party committees to $25,000
per year, both indexed for inflation; to raise aggregate limit on individual contributions to
$37,500 per year, indexed for inflation; to raise special limit on combined contributions to
Senate candidates by national and senatorial party committees to $35,000 in year of election,
indexed for inflation. Offered and Approved (84-16), March 28.
Schumer (S.Amdt. 153) – to require national parties to comply, voluntarily, with coordinated
expenditure limits in the event that the Supreme Court finds them unconstitutional, in order
to be eligible for lowest unit broadcast rate, and to allow broadcasters to not offer lowest unit
rate to parties for independent expenditures; includes severability clause. Offered and
Approved (52-48), March 28.
Bingaman (S.Amdt. 157) – to require FEC disclosure of donations to presidential inaugural
committees within 90 days of inauguration, and to prohibit such donations from foreign
nationals. Offered and Approved by voice vote, March 29.
Specter (S.Amdt. 140, as modified) – to provide an alternative to the definition of
electioneering communication, in the event that Snowe/Jeffords provision is ruled
unconstitutional, based on the Ninth Circuit Furgatch case (i.e., suggestive of no plausible
meaning other than an exhortation to vote for or against a candidate, regardless of whether it
constitutes express advocacy); to provide that nothing in the provision alters the FEC
regulation, 11 CFR 100.22(b), defining express advocacy. Offered and laid aside, March 22.
Amendment modified twice and Approved (82-17), March 29.
Nelson (S.Amdt. 159) – to prohibit fraudulent misrepresentation in the solicitation of
campaign funds. Offered and Approved by voice vote, March 29.
Kerry (S.Amdt. 160) – to direct GAO to study statistics for and the effect of public funding
(“clean money”) systems in Arizona and Maine and report to Congress within a year of
enactment. Offered and Approved by voice vote, March 29.
Levin (S.Amdt 161) – to allow state and local parties to use funds raised in accordance with
state laws for the allocable share of voter registration drives in the last 120 days of a federal
election, voter identification efforts, get-out-the-vote drives, and generic activities, provided
that they do not refer to a federal candidate and that no person donates more than $10,000 a
year to a state or local party for such activities. Offered and Approved by voice vote, March
29.
CRS-32
Durbin (S.Amdt. 162) – to require sponsorship identification on all election-related
advertising, and to enhance the visibility of such identification in the communication. Offered
and Approved by voice vote, March 29.
Thompson (S.Amdt 163) – to change penalties for knowing and willful violations to a fine
under Title 18 or one year in prison, or both, for amounts aggregating between $2,000 and
$25,000 in a year, and a fine under Title 18 or five years in prison, or both, for amounts
aggregating $25,000 or more; to change statute of limitations for election law violations from
three to five years; to direct U.S. Sentencing Commission to promulgate guidelines and make
legislative or administrative recommendations regarding penalties for violating federal election
law, per specified considerations. Offered and Approved by voice vote, March 29.
Bond (S.Amdt. 166) – to increase civil and criminal penalties for knowing and willful
violations of ban on contributions made in the name of another. Offered and Approved by
voice vote, March 30.
Hatch (S.Amdt. 167) – to provide expedited review to the U.S. District Court for D.C. for
declaratory judgment and injunctive relief; to provide direct appeal to the U.S. Supreme
Court; and to provide expedited consideration by both courts. Offered and Approved by voice
vote, March 30.
McCain (S.Amdt. 165) – to replace section 214, regarding coordinated activities: to define
“coordinated expenditure or other disbursement” as a payment made in concert or cooperation
with, or at request or suggestion of, or pursuant to any particular or general understanding
with a candidate or party; to include in the definition of “contribution,” “any coordinated
expenditures or other disbursements” (including non-express advocacy); to direct FEC to
promulgate new regulations on this subject. Offered and Approved (57-34), March 30.
Durbin (S.Amdt 169, as modified) – to take into account gross receipts of a candidate (as of
June 30 and Dec. 30 of year before election) whose opponent exceeds recommended amount
of personal fund spending on his or her campaign, before contribution limit increases are
triggered. Offered, Modified and Approved by voice vote, March 30.
McCain (S.Amdt. 171) – to make minor, technical, and conforming changes to bill, as passed.
Offered and Approved by voice vote, Apr. 2, 2001.
Amendments Rejected, Tabled, or Withdrawn.
Domenici-Ensign (S.Amdt. 112) – to raise limits on contributions to Senate candidate whose
opponent exceeds a designated level of personal funding in his or her campaign. Tabled (5148), March 19.
Bennett (S.Amdt. 117) – to repeal exemption that allows use of corporate and union treasury
money to pay overhead costs of a separate segregated fund (PAC). Offered March 20.
Defeated (37-63), March 20.
Smith, OR (S.Amdt. 118) – to prohibit contributions to candidates for or Members of
Congress by registered lobbyists when Congress is in session. Offered March 20. Tabled
(74-25), March 20.
Wellstone-Cantwell (S.Amdt. 123) – to allow states to establish voluntary systems of public
financing for congressional elections within their respective states. Offered March 21.
Defeated (36-64), March 21.
CRS-33
Hatch (S.Amdt. 134) – to: (1) strike McCain-Feingold provision on Beck decision; and (2)
require unions and corporations to disclose to and get consent of dues-payers and
shareholders, respectively, regarding use of treasury funds for political activities. Offered
March 21. Tabled (69-31), March 21.
Hatch (S.Amdt. 136) – to require unions and corporations to make reports on their political
spending to their dues-payers and shareholders, respectively. Offered March 21. Tabled (6040), March 22.
Helms (S.Amdt. 141) – to require union dues-payers to be notified annually by unions of their
right to withhold portion of dues not used for collective bargaining. Offered March 22.
Tabled (53-40), March 23.
Hutchison (S.Amdt. 111) – to exempt state and local political organizations that disclose
financial activity under state laws from notification and reporting requirements under P.L.
106-230 (mandating disclosure by 527 organizations). Offered March 19. Withdrawn, March
23.
S. J. Res. 4 (Hollings-Specter) – Proposed constitutional amendment to allow Congress and
states to set reasonable limits on contributions and expenditures in support of or opposition
to candidates for nomination and election to federal and state, or local office. Debate began
March 26. Defeated (40-56), March 26.
Fitzgerald (S.Amdt. 144) – to apply contribution limits on an election cycle basis. Offered
March 23. Withdrawn, March 26.
Hagel (S.Amdt. 146 –Division 1: Subtitle A–Contribution Limits) – to raise individual limit
on contributions to candidates to $3,000 per election, to national party committees to $60,000
per year, to PACs/other committees to $15,000 per year, and on annual aggregate
contributions to $75,000; to raise limit on PAC contributions to candidates to $7,500 per
election, to national party committees to $30,000 per year, and to PACs/committees to $7,500
per year; to raise limit on party contributions to candidates to $7,500 per election or, for
national party committees, a total of $15,000 per election, to PACs/other committees to
$7,500 per year, and special limit on combined contributions to Senate candidates from
national and senatorial party committees to $60,000 (in general election year); to index all
hard money contribution limits for inflation, as of 2003. Offered March 26, Division 1
Tabled (52-47), March 27.
Hagel (S.Amdt. 146 –Division 3: Subtitle C–Soft Money) – to impose a $60,000 annual limit
on receipt of soft money by a national party committee (or an entity it directly or indirectly
establishes, maintains, finances, or controls) from any individual or entity; to impose a
$60,000 annual limit on soft money donations by any individual or entity to all national party
committees (not including party transfers); to index soft money donation limits, as of 2002;
to require state and local party committees–and entities established, maintained, financed, or
controlled by them or by one or more state and local candidates–to use only hard money for
allocable expenses; to codify portions of FEC regulations on what kinds of mixed activities
(those benefitting federal as well as state and local campaigns) must be allocated between hard
and soft money funding; to make soft money limits contingent upon satisfactory Supreme
Court review. Offered March 26, Division 3 Tabled (60-40), March 27.
Kerry (S.Amdt. 148) – to provide partial public financing for Senate candidates in general
elections who abide by voluntary spending limits. Offered March 27. Defeated (30-70),
March 27.
CRS-34
Feinstein-Cochran-Schumer (S.Amdt. 151, to SA 149) – to raise limit on individual
contributions to candidates to $4,000 per election cycle (from date of last general election for
that office to date of that general election); to raise aggregate limit on individual contributions
to $65,000 per two-year election cycle, with up to $30,000 per cycle to candidates and
$35,000 per cycle to PACs and parties; to index individual contribution limit and special limit
on combined national and senatorial party committee Senate candidate contributions for
inflation, in $100 increments, as of 2003; to require national parties to comply with
coordinated expenditure limits, even if held to be invalid by Supreme Court, in order to be
eligible for lowest unit rate, and to allow broadcasters to not offer lowest unit rate to parties
for independent expenditures. Offered March 28. Motion to table defeated (46-54), March 28.
Withdrawn, March 28.
Schumer (S.Amdt. 135) – to express Sense of the Senate that election reform is not ready for
consideration by Senate. Offered March 21. Withdrawn, March 28.
DeWine (S.Amdt. 152) – to strike Title II of McCain-Feingold, defining electioneering
communications, requiring their disclosure, and prohibiting their use by certain entities and
in certain instances. Offered March 28. Defeated (28-72), March 29.
Harkin (S.Amdt. 155) – to establish voluntary spending limits in Senate elections ($1 million
plus 50 cents per eligible voter in state, plus an additional 67% for a primary, and 20% for
a runoff), with public funds (from a tax checkoff and FEC fines) to match, on a two-for-one
basis, amounts spent by an opponent over the voluntary limit. Offered and Defeated (32-67),
March 29.
Frist-Breaux (S.Amdt. 156, as modified) – to establish non-severability for only the
Snowe/Jeffords provisions regarding electioneering communications (Sections 201 and 203),
the soft money provisions (in Section 101, except for the part banning party donations to or
fundraising for tax-exempt organizations, and in section 103(b), banning party building
funds), and the hard money contribution limit increases (in Section 308); to establish
severability for all other provisions; severability would allow any provision of the bill that is
not held unconstitutional to remain in effect, and non-severability would invalidate all five
sections (Sections 101, 103(b), 201, 203, and 308) if any one of those sections was held
unconstitutional; and to provide expedited review of any provision or amendment to U.S.
District Court with direct appeal to Supreme Court. Offered; Motion to table approved (5743), March 29.
Bingaman (S.Amdt. 158) – to require that broadcasters provide free, equal response time to
federal candidates who are attacked or opposed in broadcast ads (regardless of whether they
constitute express advocacy) by any person, other than another federal candidate. Offered,
and Motion to table approved (72-28), March 29.
Harkin (S.Amdt 168) – to make provisions that ban soft money and that increase hard money
contribution limits non-severable, with relation to each other. Offered, Defeated by voice
vote, March 30.
Reed (S.Amdt 164, as modified) – to extend period in which audits may be conducted from
six to 12 months; to give FEC authority to seek injunctions; to increase knowing and willful
violation penalties; to expedite enforcement procedures in final 60 days of election; to prevent
use of candidate name by unauthorized committees, and require candidate name in the name
of authorized committees; to allow FEC to refer suspected violations to Attorney General at
any time; to authorize FEC appropriations of $80 million annually, to be adjusted for
inflation. Offered March 29, Modified and Defeated (41-50), March 30.
CRS-35
Amendment Superseded by Modification.
Thompson, as offered (S.Amdt. 149) – to raise individual limit on contributions to candidates
to $2,500 per election, to national party committees to $40,000 per year, to PACs/other
committees to $7,500 per year, and on annual aggregate contributions to $50,000; to raise
limit on PAC (and party) contributions to candidates to $7,500 per election, to national party
committees to $17,500 per year, and to PACs/other committees to $7,500 per year; to raise
special limit on combined contributions to Senate candidates from national and senatorial
party committees to $35,000 (in general election year); to index all hard money contribution
limits for inflation, in multiples of $500, as of 2003. Offered March 27. Motion to table
defeated (46-54), March 28. Modification accepted by unanimous consent, March 28 (see
modified version).
Amendments Submitted but Not Acted On.
Hutchison (S.Amdt. 110) – to limit to $250,000 the amount of Senate campaign funds that
may be used to repay personal loans from candidates or family members. Offered March 19.
Specter (S.Amdt. 114) – to add to definitions of electioneering communications and public
communications (in terms of federal election activity) that they promote, support, attack, or
oppose a candidate in such a way that a reasonable person would not disagree that the
message seeks the election or defeat of a candidate. Offered March 19.
Thompson (S.Amdt. 116) – to triple all hard money contribution limits and index them for
future inflation. Offered March 20.
Allard (S.Amdt. 119) – to: (1) raise individual and lower PAC contribution limits; (2) remove
party limits in response to candidate spending of over $5,000 personal funds; (3) require half
of congressional campaign funds to come from state or district residents; (4) require national
parties to disclose disbursements of over $1,000 on any political activity, as defined; (5)
require Paycheck Protection by corporations and unions; (6) require annual notice of political
activity spending to corporate stockholders and union dues-payers; (7) require unions and
corporations to report all exempt activity spending of at least $1,000; (8) require monthly
reports by candidates after July of election year and 24-hour reports in last 15 days of
election; (8) require itemized record-keeping and reporting of all contributions; (9) prohibit
deposit of any contribution not properly identified; (10) allow filing of reports by FAX or
other methods; (11) require availability of all reports at FEC within 24 hours; (12) prohibit
fundraising to repay debts and loans past 90 days after election, and require unpaid debts to
be assumed by candidate; and (13) prohibit franked mass mailings by Members. Offered
March 20.
Allard (S.Amdt. 120) – to: (1) require national parties to disclose disbursements of over
$1,000 on any political activity, as defined; (2) require annual notice of political activity
spending to corporate stockholders and union dues-payers; and (3) require unions and
corporations to report all exempt activity spending of at least $1,000. Offered March 20.
Allard (S.Amdt. 121) – to: (1) require monthly reports by candidates and, in last 15 days of
election, 24-hour reports; (2) require itemized record-keeping and reporting of all
contributions; (3) prohibit deposit of any contribution not properly identified; and (4) require
availability of all reports at FEC within 24 hours. Offered March 20.
Bond (S.Amdt. 125) – to: (1) amend Motor Voter law to require voters whose registration
cannot be verified to present picture identification to vote; and (2) require FEC to set up a
CRS-36
demonstration project to coordinate maintenance of voter rolls with state officials. Offered
March 21.
Bond (S.Amdt. 126) – to amend Motor Voter law to improve accuracy of voter rolls, allow
states to require notarization of mail-in registration form, require first-time voters to show
picture identification, and establish penalty for conspiracy to deprive citizens of fair and
impartial election process. Offered March 21.
Cleland (S.Amdt. 127) – to: (1) require pre-election reports filed by 12th day before election;
and (2) require PACs with over $100,000 in financial activity to file monthly reports and to
notify FEC of contributions of $1,000 or more received in last 20 days of an election. Offered
March 21.
Cleland (S.Amdt. 128) – to allow FEC to conduct random audits within 12 months of an
election. Offered March 21.
Cleland (S.Amdt. 129) – to allow filing of civil suits for injunctive relief if FEC does not act
on a complaint within 120 days of its filing. Offered March 21.
Cleland (S.Amdt. 130) – to prohibit candidates from raising funds before January 1 of
election year (or 90 days before ballot qualification), with exception to compensate for
opponent carryover, and after the fifth day following election, except to pay debts incurred
in that campaign. Offered March 21.
Cleland (S.Amdt. 131) – to give FEC authority for independent litigation and for right to
petition Supreme Court for appeals. Offered March 21.
Cleland (S.Amdt. 132) – to add a seventh FEC commissioner and specify new appointment
and prerequisite experience rules. Offered March 21.
Cleland (S.Amdt. 133) – to require certification in disclosure reports that an itemized
contribution was not made in the name of another person or from a foreign national. Offered
March 21.
Bond (S.Amdt. 150) – to increase civil and criminal penalties for violation of prohibition on
contributions made in the name of another (i.e., laundered money); to ban any funding from
foreign nationals for any disbursement or independent expenditure by political party
committees. Offered March 27.
Warner (S.Amdt. 154) – to establish a 100% tax credit of up to $100 ($200 on joint returns)
for contributions to congressional candidates by taxpayers whose modified adjusted gross
income does not exceed $50,000 ($100,000 for joint returns). Offered March 28.
CRS-37
Appendix 2. House Debate on and Amendments to
H.R. 2356 (Shays-Meehan)
The House Administration Committee held a series of hearings on campaign
finance reform beginning on March 17, 2001 in Phoenix AZ. On May 1, during the
second hearing of the series, supporters of McCain-Feingold and its House
companion, H.R. 380 (Shays-Meehan), urged the House to act by Memorial Day.
Chairman Ney stated the Committee would report a bill to the House by the end of
June. A third hearing, on constitutional issues, was held June 14, and a fourth, on
June 21, heard testimony from House Members.
On June 28, the Committee completed its hearings by taking further testimony
from Members. It then proceeded to markup of H.R. 2360 (Ney-Wynn), and ordered
it reported favorably to the House (H.Rept. 107-132). The bill featured limits on soft
money donations to national parties, disclosure of amounts spent on election-related
issue advocacy, and increases in some hard money contribution limits. The Committee
also ordered H.R. 2356, the modified Shays-Meehan bill, reported unfavorably
(H.Rept. 107-131, pt. 1). That bill closely resembled S. 27 (McCain-Feingold), as
passed by the Senate in April. Hearings were also held on June 12 by the Judiciary
Subcommittee on the Constitution, on related constitutional issues, and on June 20
by the Energy and Commerce Subcommittee on Telecommunications and the Internet,
on related broadcast issues.
The House planned to consider campaign finance reform on July 12, 2001, with
debate expected to focus on the Ney-Wynn and Shays-Meehan bills. However,
debate failed to materialize that day, when the House rejected on a 203-228 vote the
proposed rule for considering the issue. H. Res. 188, as reported from the Rules
Committee that morning (H.Rept. 107-135), would have made in order H.R. 2356
(Shays-Meehan), 20 perfecting amendments (including 14 by the bill’s managers),
and two substitutes–the Doolittle amendment, nearly identical to H.R. 1444, and the
Ney-Wynn amendment, identical to H.R. 2360.
Supporters of Shays-Meehan filed a discharge petition on July 19 to force
reconsideration of the issue. By gaining the needed 218 signatures, it would bring up
a rule—H.Res. 203 (Turner)—making in order for House debate on Shays-Meehan
and three substitutes (offered by Representatives Shays and Meehan, House
Administration Committee Chairman Ney, and Majority Leader Armey). On January
24, 2002, advocates of Shays-Meehan secured the last four signatures necessary to
force a floor vote on the bill. House leaders pledged to set a date for floor debate,
based on terms of the discharge petition.
On February 7, 2002, the House Rules Committee reported H.Res. 344 (H.Rept.
107-358), setting forth terms for debate of H.R. 2356, similar to those of the
discharge petition. The House passed the rule on a voice vote on February 12. On
February 13, the House agreed to a Shays-Meehan substitute amendment, after
rejecting substitutes offered by Representatives Armey and Ney. The House then
agreed to four perfecting amendments and rejected eight others, after which H.R.
2356, as amended, was passed on a 240-189 vote.
CRS-38
Amendments Accepted.
Shays Substitute no. 9 (Passed, 240-191)
Individuals (Hard Money). Raises limit on contributions to candidates to $2,000 in
Presidential and Senate elections, retains $1,000 limit in House elections, and indexes both
for inflation; raises limit on contributions to state party committee to $10,000 per year; raises
limit on contributions to national party committees to $25,000 per year, indexed for inflation;
raises (and indexes) aggregate limit to $95,000 per 2-year cycle, with sub-limits:(a) $37,500
to all candidates; (b) $57,500 to all PACs and parties (no more than $37,500 of which is to
state and local parties and PACs);
Parties (Hard Money). Raises special limit on combined contributions to Senate candidates
by national and senatorial party committees to $35,000 in year of election, indexed for
inflation;
Candidates (Hard Money). Codifies FEC regulations on permissible uses for campaign
funds; retains ban on personal use; limits repayment of candidate loans to $250,000, from
post-election contributions; for Senate elections: raises limits on individual and party support
for Senate candidate whose opponent exceeds designated level of personal funding in
campaign; creates threshold of $150,000 + 4¢ times number of eligible voters in state; if
“opposition personal funds amount” (personal spending of candidate minus that of opponent)
exceeds threshold amount by: (a) 2-4 times, then limit on individual contributions to opponent
is tripled; (b) 4-10 times, then limit on individual contributions to opponent is raised 6-fold;
(c) 10 times, then limit on individual contributions to opponent is raised 6-fold and limit on
party coordinated expenditures for opponent is removed; aggregate individual limit would be
raised to extent of increased contribution limits; limits would be raised only to extent of 110%
of total “opposition personal funds amount;” In calculating “opposition personal funds
amount,” considers candidate warchests, by including “gross receipts advantage” of candidate
opposed by wealthy candidate (i.e., 50% of gross receipts of candidate minus 50% of gross
receipts of wealthy opponent, as of June 30 and Dec. 31 of year before election);
Independent Expenditures (Hard Money). Defined as an expenditure by a person for a
communication that is express advocacy, and that is not made in concert or cooperation with,
at request or suggestion of a candidate, party, or agent; requires a 48-hour notice of
independent expenditures of $10,000 or more, up to 20 days before an election (and 24-hour
notice of expenditures above $1,000 in last 20 days, same as currently); bans parties from
making both independent and coordinated expenditures for a general election candidate;
Coordination (Hard and Soft Money). Treats an “electioneering communication” that is
coordinated with a candidate, agent, or party as a contribution to and expenditure by candidate
or party; treats expenditures by any person made in cooperation, consultation, or concert with,
or at request or suggestion of, any party committee as a contribution to that party committee;
repeals new FEC regulations on coordination within 90 days, and directs FEC to promulgate
new regulations within 90 days on coordinated communications by persons other than
candidates, authorized committees, or parties; specifies new rules will not require “agreement
or formal collaboration” to establish coordination and will address issues of: (1) republication
of campaign material; (2) common vendors; (3) prior employment status; and (4) substantial
discussion with candidate or party;
Soft Money: Party. Prohibits a national party committee, including entities directly or
indirectly established, financed, maintained, or controlled by such committee or agent acting
on its behalf, from soliciting, receiving, directing, transferring, or spending soft money; in
general, bans soft money spending for a “federal election activity” by state/local party
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committees, including an entity directly or indirectly established, financed, maintained, or
controlled by a state or local party committee (and agent acting on its behalf), or by an
association or group of state/local candidates or officials (while generally state/local
candidates are prohibited from using soft money for public communications that
promote/attack a clearly identified federal candidate, bill exempts communications referring
to a federal candidate who is also a state/local candidate); but allows state, district, or local
party committee to use some funds raised under state law for an allocable share (at a ratio to
be set by FEC) of voter registration drives in last 120 days of a federal election, voter
identification, get-out-the-vote drives, and generic activity, if they: (1) do not refer to a federal
candidate; (2) do not pay for a broadcast, cable, or satellite communication (unless it refers
solely to state/local candidates); (3) take no more than $10,000 a year from any person
(including an entity person establishes, finances, maintains, or controls) for such activity; and
(4) use only funds raised by that party committee expressly for such purposes, with no
transfers from other party committees (and agents/officers acting on their behalf or entity they
directly or indirectly establish, finance, maintain, or control); prohibits funds for these
accounts from being solicited, received, directed, transferred, or spent in name of national
party, federal candidate or official, or joint fundraising activities by two or more party
committees; defines “federal election activity” to include: (1) voter registration drives in last
120 days of a federal election; (2) voter identification, get-out-the-vote drives, and generic
activity in connection with an 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 (regardless of whether it expressly advocates a
vote for or against); or (4) services by a state or local party employee who spends at least 25%
of paid time in a month on activities in connection with a federal election; defines “public
communications” to include communications by broadcast, cable, satellite, newspaper,
magazine, outdoor advertising, 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 made within 30 days of each other); defines “generic campaign activity” as one that
promotes a party but not a federal or non-federal candidate; allows state parties to spend
money exclusively on non-federal election activities; bans party committees from using soft
money to raise funds for use at least in part on federal election activities; prohibits party
committees or agents from raising money for, or giving to, an Internal Revenue Code §501(c)
tax-exempt organization that makes disbursements in connection with a fed. election
(including a “federal election activity”) or a §527 tax-exempt organization (if not a federal
political committee); prohibits federal candidates, officeholders, agents, or entities they
directly or indirectly establish, maintain, finance, or control from raising soft money in
connection with a federal election (including any “federal election activity”) or any money
from sources beyond federal limits and prohibitions in non-federal elections (ban does not
apply to federal officials who are or were candidates for state or local office for activity
allowed under state law and refers only to the state/local candidate or opponents); regardless
of other soft money restrictions, allows federal candidates or officials to make: (a) general
solicitations without restriction on behalf of 501(c)s involved in federal elections where
solicitation doesn’t specify how funds will be used, unless 501(c)’s principal purpose is voter
registration in last 120 days of federal election, GOTV, voter ID, or generic activity where a
federal candidate is on ballot; and (b) solicitations for 501(c)s involved in federal elections
specifically for above-mentioned activities, or for general use by 501(c) whose principal
purpose is such activities, with solicitations made only to individuals, subject to a $20,000 per
donor limit; codifies FEC regulations on disclosure of all national party activity–federal and
non-federal; requires disclosure of “federal election activities” by state and local party
committees subject to a $5,000 threshold (including entities directly or indirectly established,
financed, maintained, or controlled by either state/local party committee and agent or by state
or local candidates and officials); disclosure must include amounts raised and spent by special
soft money accounts, allowed to be used for “federal election activities;” ends building fund
exemption;
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Issue Advocacy (Soft Money). Defines “electioneering communication” as a broadcast, cable,
or satellite advertisement that “refers” to a clearly identified federal candidate, made within
60 days of a general election or 30 days of a primary, and, if for House or Senate elections,
is targeted to the relevant electorate (exempts news events, expenditures, independent
expenditures, debates, and others by FEC regulation); provides alternative definition of
“electioneering communication,” in the event that the first definition is ruled unconstitutional,
based on FEC v. Furgatch (1987) (i.e., communication promoting, supporting, attacking, or
opposing a candidate, regardless of whether it expressly advocates a vote for or against a
candidate, and is suggestive of no plausible meaning other than an exhortation to vote for or
against a candidate); nothing in provision alters 11 CFR 100.22(b), FEC regulation defining
express advocacy; defines “targeted to the relevant electorate” as communication which can
be received by 50,000 or more persons in state or district where Senate/House election,
respectively, is occurring; requires disclosure to FEC of disbursements for direct costs of
producing and airing electioneering communications by any spender exceeding $10,000 annual
aggregate in such disbursements, within 24 hours of first and each subsequent $10,000
amount; requires disclosure to include: identification of spender, custodian of books, and any
entity exercising control over activity; principal place of business; ID of disbursements of over
$200; ID of donors of $1,000 or more (either to a separate segregated fund devoted
exclusively to such activities, with funds only from U.S. citizens or nationals or permanent
resident aliens, or, if no separate segregated fund, to organization itself); and notation as to
election and candidates to which communications pertain; bans funding of electioneering
communications with funds from union or certain corporate funds; but exempts IRC
§501(c)(4) or §527 tax-exempt corporations making electioneering communications with
funds solely donated by individuals who are U.S. citizens or nationals or permanent resident
aliens, unless communication is a targeted communication, i.e., it was distributed from a
broadcaster or cable or satellite service and is received by 50,000 or more persons in state or
district where Senate/House election, respectively, is occurring; treats an electioneering
communication that is coordinated with a candidate, agent, or party as a contribution to and
expenditure by candidate or party; requires broadcasters to maintain and make available for
public inspection records of broadcast time requests by candidates or by other entities whose
message relates to political matters of national importance, including messages about a legally
qualified candidate, a federal election, or a legislative issue of public importance; requires
records to include: whether request was accepted; rate charged; date and time message aired;
class of time purchased; identification of candidate and office, election, or issue referred to;
and identity of purchaser, incl. officers of any non-candidate entity;
FEC Enforcement. Increases criminal penalties for knowing and willful violations involving
contribution/expenditure/donation amounts aggregating from $2,000 to $25,000 in a year:
a fine under Title 18 or up to one year in prison, or both; for knowing and willful violations
involving amounts aggregating $25,000 or more: a fine under Title 18 or up to five years in
prison, or both; imposes specific penalties for knowing and willful violations of ban on
contributions made in the name of another: in civil cases: between 300% of violation amount
and the greater of $50,000 or 1000% of violation amount; in criminal cases: 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 amount, or prison and fine; changes statute of
limitations from three to five years, for criminal violations of Act; directs U.S. Sentencing
Commission to promulgate guidelines and make legislative or administrative recommendations
regarding penalties for violating federal election law, per specified considerations; requires
FEC to promulgate regulations concerning bill’s soft money provisions within 90 days of
effective date and concerning bill’s other provisions within 270 days;
FEC Disclosure. Requires all reports filed with FEC to be posted on Internet and available
for inspection within 48 hours, or 24 hours if filed electronically; requires FEC to maintain
central web site of all publicly available election-related reports; requires FEC to develop and
CRS-41
provide standardized software for filing reports electronically, and requires candidates’ use
of such software; requires candidates to file monthly reports in election years and quarterly
reports in non-election years, and requires national party committees to file monthly reports
in all years;
Advertising. Makes TV, cable, and satellite lowest unit rate (LUR) broadcast time (for last
45/60 days of election) non-preemptible, with rates based on comparison to prior 180 days;
requires such rates to be available to parties buying time for “coordinated expenditures” for
their candidates; and provides for random audits to insure compliance; requires federal
candidate broadcast ads sold at lowest unit rate and 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); adds requirement for sponsor identification by political
committees for any public political advertising (including “electioneering communications”),
and requires specific minimal standards to enhance visibility of such identification in the
communication;
Foreign. Bans direct or indirect contributions from foreign nationals (including soft money),
or their solicitation or receipt, or any promise to make such donations, in connection with any
U.S. election, to a national party committee, or for any expenditure, disbursement, or
independent expenditure for an “electioneering communication” (retains permanent resident
alien exemption); clarifies that ban does not apply to U.S. nationals;
Miscellaneous. Bans solicitation or receipt of contributions, including soft money, from
anyone or by federal officials, while in any federal government building used to discharge
official duties; requires FEC disclosure of over-$200 donations to presidential inaugural
committees within 90 days of event, and bans foreign national donations to them; prohibits
fraudulent misrepresentation in the solicitation of campaign funds, and bans knowing and
willful participation in conspiracy to engage in such violations; bans contributions to
candidates and donations to parties by individuals 17 and younger; directs GAO to study and
report to Congress statistics for and effects of public funding systems in Arizona and Maine;
provides for expedited review to the U.S. District Court for D.C. (and exclusive venue) for
declaratory judgment and injunctive relief on constitutional grounds; provides direct appeal
to the U.S. Supreme Court from any final order or judgment; and provides for expedited
consideration by both courts; provides if any action is brought for declaratory or injunctive
relief to challenge the constitutionality of the Act, it shall be filed in U.S. District Court for
D.C. and heard by a 3-judge court; a copy of the complaint shall be delivered promptly to the
Clerk of the House and the Secretary of the Senate; a final decision shall be reviewable only
by direct appeal to the U.S. Supreme Court, (notice of appeal to be filed within 10 days and
jurisdictional statement to be filed within 30 days); expedited consideration to be provided by
both courts; and right of intervention provided to Members of the House and Senate; if any
provision of the Act or its amendments, or its application to any person or circumstance, is
held unconstitutional, the remainder of the Act and its amendments, and its application to any
person or circumstance, shall not be affected by the holding; generally, provisions take effect
November 6, 2002, unless otherwise provided; specifies transition rules for soft money: (a)
allows parties to pay outstanding debts from soft money raised between effective date and
December 31, 2002; and (b) to defray costs of construction or purchase of a party office
building or facility at any time after December 31, 2002.
Green Amendment no. 11 (Passed, 327-101)
Advertising. Strikes section 305 from H.R. 2356, requiring non-preemptible lowest unit rate
to candidates, changing time period used as a base for such rates, and requiring political
parties to get lowest unit rate for coordinated expenditures on behalf of candidates.
CRS-42
Capito Amendment no. 10 (Passed on voice vote)
Candidates (Hard Money). Triggers a tripling of individual contribution limits and additional
party coordinated expenditures for House candidates facing wealthy self-financed opponents;
adjusted limits would be triggered when wealthy opponent has spent more than $350,000 of
personal wealth, taking into account as offsets both the personal wealth spent by the
non-wealthy candidate and the accumulated campaign funds of both candidates.
Wamp Amendment no. 12 (Passed, 218-211)
Individuals (Hard Money). Increases the limit on individual contributions to House
candidates from $1,000 per election to $2,000.
Kingston Amendment no. 25 (Passed, 232-196)
Soft Money: Party. Deletes provision allowing use of remaining soft money funds for political
party building construction; also deletes exemption of state party building costs from the
definition of “federal election activity.”
Meehan Motion to Recommit (Passed on voice vote)
Miscellaneous. Clarified that provision allowing repayment of debts using soft money for a
limited time period shall not allow use of soft money to repay hard money debts.
Amendments Defeated.
Armey Substitute no. 13 (Defeated, 179-249)
Soft Money: Party. Prohibits the soliciting, receiving or directing of soft money by national
parties, including a ban on using soft money for constructing or purchasing a building,
influencing state reapportionment, and financing reapportionment litigation; requires state,
district, and local parties to spend hard money for “federal election activity,” which is defined
as: voter registration, voter ID, GOTV, or generic campaign activity in connection with an
election where federal candidate appears on the ballot, regardless of whether state or local
candidate also appears; prohibits all political parties from raising funds or making donations
to tax-exempt §501(c) and §527 organizations;
Soft Money: Non-Party. Prohibits corporations and labor unions from using treasury funds
to finance nonpartisan registration and GOTV activity; requires that §501(c)(3),(c)(4), and
527 organizations use hard money for partisan voter registration and GOTV activities.
Ney Substitute no. 14 (Defeated, 53-377)
(based on H.R. 417, as passed by House in 106th Congress)
Individuals (Hard Money). Raises aggregate individual limit to $30,000 per year; raises limit
on individual contributions to state parties to $10,000 per year;
Candidates (Hard Money). Specifies permissible uses and prohibit personal use of campaign
funds; bans party coordinated expenditures on behalf of House or Senate general election
candidates not abiding by voluntary personal spending limit of $50,000;
Independent Expenditures (Hard Money). Defines “independent expenditure” as containing
express advocacy and made without coordination with a candidate, agent, or person
CRS-43
coordinating with candidate; requires 48 hour notice of expenditures of $10,000 or more, up
to 20 days before an election; bans parties from making both independent and coordinated
expenditures for a general election candidate; amends “contribution” to incl. any “coordinated
activity”; defines “coordinated activity” as anything of value provided in coordination with
a candidate (or party or agent) to influence a federal election, regardless of whether it contains
express advocacy, incl. payments: (1) in cooperation or consultation with, or at request or
suggestion of, a candidate, party, or agent; (2) using candidate-prepared materials; (3) based
on information provided by candidate’s campaign for purposes of expenditure; (4) by a
spender who in that election cycle has raised funds or acted in an official position for a
candidate; (5) by a spender who has used same consultants as an affected candidate in election
cycle, directly or through party; (6) for communications about campaign plans, directly or
through party; (7) for in-kind professional services, directly or through party, other than for
voter guide mailings; and (8) in coordination with a candidate to influence election regardless
of whether communication contains express advocacy; deems anything of value in
coordination with candidate a “contribution” or “expenditure”; exempts lobbying contacts
from consideration as coordination; bans conciliation agreements in cases in which FEC has
found probable cause of knowing and willful violations of independent expenditure disclosure
requirements;
Soft Money: Party. Bans national party committees from soliciting, receiving, directing,
transferring, or spending soft money; bans state and local party committees from spending soft
money for federal election activity, including: (1) voter registration drives in last 120 days of
a federal election; (2) voter identification, get-out-the-vote drives, and generic activity in
connection with an election in which a federal candidate is on the ballot; and (3)
communications that refer to a clearly identified federal candidate with intent of influencing
that election (regardless of whether it is express advocacy); allows state party spending on
specific activities exclusively devoted to non-federal elections; bans party committees’ use of
soft money to raise funds; bans federal candidates, officeholders, and their PACs from raising
soft money in connection with a federal election, or money from sources beyond federal limits
and prohibitions in non-federal elections; requires disclosure by national parties of all activity
(federal and non-federal) and by state and local parties of specified activities that might affect
federal elections; removes building fund exemption;
Soft Money: Non-Party. Requires unions, corporations, and other groups or entities—other
than party committees or religious organizations—to disclose all exempt activities (but only
those internal communications referring to federal candidates), once $50,000 has been spent;
Issue Advocacy. Defines “express advocacy” communications as advocating election or
defeat of a candidate by: (1) using explicit phrases, or words or slogans that in context can
have no other reasonable meaning than election advocacy; (2) referring to a candidate in a
paid radio or TV broadcast ad that appears in affected state within 60 days of election (or, for
President, within 60 days, regardless of where ad appears); or (3) expressing unmistakable,
unambiguous election advocacy, when taken as a whole and with limited reference to external
events; exempts, from definition, printed or Internet voting guides and records about at least
one candidate, which: (1) taken as a whole do not express unambiguous support for candidates
(but may include words of agreement or disagreement with candidate positions); (2) are not
coordinated with a candidate or party (but allowing questions to candidates and their
responses, for the guides); and (3) contain no words or phrases that in context have no
reasonable meaning other than election advocacy; excludes background music (but not lyrics)
from determining if an ad constitutes express advocacy; amends “expenditure” to include
payment for communications referring to clearly identified candidates, with intent of federal
election influence (regardless of whether it is express advocacy);
CRS-44
FEC Enforcement. Allows random audits of campaigns within 12 months after election;
increases civil penalties for violations, adds automatic penalties for late filing, and provides
for equitable remedies in conciliation agreements; expedites enforcement procedures in cases
where there is clear and convincing evidence that a violation has occurred, is occurring, or is
about to occur; allows FEC to refer suspected violations to Attorney General at any time;
changes standard to begin enforcement proceedings to “reason to investigate” standard;
increases criminal penalties for knowing and willful violations of contribution and expenditure
limits to mandatory prison term of one to 10 years; allows Justice Department to bring
criminal actions at any time, without waiting for FEC referral; allows candidates to institute
civil actions for suspected violations in last 90 days of election, with expedited court review;
provides that contributions over $500 that a committee intends to return (after a specified
period) be placed in an FEC escrow account, pending investigation of possible violations, with
money used toward fines, penalties, and investigation costs and contributions returned if no
reason to investigate possible violation is found within 180 days of deposit;
FEC Disclosure. Requires electronic disclosure by any committee exceeding threshold
financial activity level, with Internet posting of information within 24 hours; bans candidates
from depositing contributions over $200 without complete itemized information; lowers
threshold for itemizing contributions to $50 (to include only name and address);
Advertising. Amends disclaimer requirements to make them more prominent and visible;
Foreign. In connection with all U.S. elections: bans direct or indirect contributions (including
soft money), or their solicitation, from foreign nationals to a candidate, party, or committee
(retains permanent resident alien exemption; clarifies that ban does not apply to U.S.
nationals); in connection with federal elections only: bans financial activity by anyone who is
neither a U.S. citizen nor U.S. national (this ban includes permanent resident aliens); ensures
all eligible voters equal rights to contribute and spend money in federal elections, including
through a PAC set up by their union or corporate employer; denies “willful blindness” as a
defense against charge of violating foreign national fundraising ban, if recipient should have
known that contribution was from foreign national; mandates penalties for violating foreign
national ban of up to 10 years in prison, up to $1 million in fines, or both; creates FEC
clearinghouse on political and lobbying activities of foreign principals and agents;
Commission. Creates temporary commission to propose federal campaign finance reforms;
Miscellaneous. Bans false representation to raise funds; restricts non-candidate committee
use of candidate names; bans contributions by minors to candidates or parties; bans
solicitation of contributions, including soft money, by federal officials from any government
building used to discharge official duties; bans use of White House meals or accommodations
for political fundraising; expresses sense of Congress that “controlling legal authority”
prohibits use of federal property to raise campaign funds; requires national party to reimburse
Treasury at fair market charter rate for use of Air Force One to raise money for party;
requires federal candidates (not holding federal office) who use federal government vehicles
for campaign purposes to reimburse Treasury at full cost; bans political committees’
providing currency to encourage voter turnout (“walking around money”); if any provision
of the Act or this statute is held unconstitutional, the remainder of the Act and this statute will
be unaffected.
Hyde Amendment no. 32 (Defeated, 188-237)
Miscellaneous. states that nothing in the bill may be construed to abridge First Amendment
rights, specifically the freedoms of speech and the press, the right to peaceably assemble and
the right to petition the government for a redress of grievances.
CRS-45
Pickering Amendment no. 27 (Defeated, 209-219)
Issue Advocacy. Exempts from the bill any communication/advertisement that consists of
information or commentary about a person holding or seeking federal office on any matter
pertaining to the Second Amendment.
Watts Amendment no. 31 (Defeated, 185-237)
Issue Advocacy. Exempts from the bill any communications/advertisement that consists of
information or commentary about a person holding or seeking federal office on any matter
pertaining to civil rights.
Sam Johnson Amendment no. 28 (Defeated, 200-228)
Issue Advocacy. Exempts from the bill any communication/advertisement that consists of
information or commentary about a person holding or seeking federal office on any matter
pertaining to veterans, military personnel, or senior citizens or families of any of those groups.
Combest Amendment no. 30 (Defeated, 191-237)
Issue Advocacy. Exempts from the bill any communication/advertisement that consists of
information or commentary about a person holding or seeking federal office on any matter
pertaining to workers, farmers or families.
Emerson Amendment no. 33 (Defeated, 185-244)
Soft Money: Party. Completely bans party soft money, by deleting “Levin” provision
allowing state and local parties to continue to use some soft money for generic activities and
voter registration and GOTV activities.
Wicker Amendment no. 34 (Defeated, 160-268)
Foreign. Prohibits any non-citizen from contributing to a federal campaign (i.e., removes
exemption from foreign national ban for permanent resident aliens).
Reynolds Amendment no. 29 (Defeated, 190-238)
Miscellaneous. Makes the bill effective immediately (February 14), with any soft money
funds remaining in party accounts would need to be returned to the donors.
Ney Amendment no. 26 (Defeated, 181-248)
Individuals (Hard Money). Raises limit on contributions to state party committees to $10,000
per year; raises aggregate contribution limit to $37,500 per year; exempts contributions to
national parties from aggregate limit; indexes all limits for inflation, as of 2003;
PACs (Hard Money). Raises limit on contributions to state party committees to $10,000 per
year; raises limit on contributions to national party committees to $30,000 per year; indexes
all limits for inflation, as of 2003;
Parties (Hard Money). Exempts national parties’ costs of producing and distributing
grassroots materials for volunteer activities from contribution and expenditure definition
(extending current exemption for state/local parties); indexes all limits, as of 2003;
CRS-46
Candidates (Hard Money). Allows national parties to make expenditures on behalf of House
or Senate candidates beyond the extent allowed under coordinated expenditure limits, to match
contributions from wealthy opponents’ personal funds, once in excess of $100,000;
Soft Money: Party. For federal election activities: prohibits national political party
committees, including officers or agents acting on their behalf and entities they directly or
indirectly establish, maintain, or control, from soliciting, receiving, directing, or transferring
soft money; For non-federal election activities: permits no soft money from individuals, and
imposes a limit of $20,000 per calendar year on the amount of soft money any other person
may donate or transfer to a national party committee; defines “federal election activity” to
include: (1) voter registration drives in the last 120 days of a federal election, unless for
generic activity; (2) voter identification or get-out-the-vote drives in an election with at least
one federal candidate on the ballot, unless for generic activity; (3) any public communication
that refers to or depicts a clearly identified federal candidate and that supports, promotes,
attacks, or opposes a candidate for that office, regardless of whether it expressly advocates
a vote for or against a candidate; or (4) any public communication made by broadcast, cable,
or satellite; exempts from “federal election activity” definition, costs of administering and
soliciting funds for national party committees, if funds are designated exclusively for such
uses and are segregated accordingly; defines “public communications” as those made by
broadcast, cable, satellite, newspaper, magazine, outdoor advertising facility, or direct mail;
defines “generic activity” as activity that does not mention, depict, or otherwise promote a
clearly identified federal candidate;
Issue Advocacy (Soft Money). For broadcast, cable, or satellite communications: requires
FEC disclosure of disbursements for communications disseminated within 120 days of a
federal election and which “mention a clearly identified federal candidate” by name, image,
or likeness, within 24 hours after each such disbursement; For non-broadcast communications:
requires FEC disclosure of disbursements for communications disseminated within 120 days
of a federal election, which “refer or depict a clearly identified federal candidate” by name,
image, or likeness, and are targeted to the relevant electorate, if 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; exempts from disclosure requirements: broadcast news stories
and commentaries; “expenditures” as defined by federal election law; payments by vendors
acting solely pursuant to a contractual agreement with person sponsoring communication; and,
in the case of non-broadcast media, communications by a membership organization (including
a union) or a corporation solely to its members, stockholders, or executive and administrative
personnel, if entity is not organized primarily for purposes of influencing federal elections;
defines “targeted mass communication” as one disseminated within 120 days of a federal
election, which “refers to or depicts” a clearly identified federal candidate by name, image,
or likeness, and which is “targeted to 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; and (b) other forms of communication will be deemed as “targeted” if over 10%
of intended recipients are part of that electorate or if over 10% of that total electorate receives
the communication; disclosure statement must include: identification of person making the
disbursement, any entity sharing or exercising control or direction over activity, and custodian
of books and accounts; principal place of business of person making disbursement (if not an
individual); identity of candidates mentioned or those to whom communication pertains; text
of communication; amount of disbursement (for non-broadcast communications, only amounts
over $200 and including identity of recipient, as well);
Miscellaneous. Makes provisions of bill effective immediately.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.