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RS20346: Campaign Finance Bills in the 106th Congress:
Comparison of Shays-Meehan, as passed,
with McCain-Feingold, as considered

Joseph E. Cantor

Specialist in American National Government
Government & Finance Division

Updated January 12, 2000

Summary

On September 14, 1999, the House passed the Shays-Meehan bill--H.R. 417, the Bipartisan Campaign Finance Reform Act of 1999, as amended, by a vote of 252-177. Senate sponsors of the companion measure, S. 26 (McCain-Feingold), revised their proposal and, on September 16, introduced S. 1593, containing just four sections of H.R. 417 and S. 26. The Senate debated S. 1593 from October 13-20, culminating in unsuccessful cloture votes October 19 on two amendments: Daschle amendment 2298, substituting text nearly identical to the House-passed H.R. 417; and Reid amendment 2229 (a perfecting amendment to no. 2298), substituting text of S. 1593 as offered, plus McCain amendment 2294 (adopted October 14), which added certain disclosure requirements. This report compares provisions of the House-passed bill with the one considered by the Senate in October 1999. No further updates are planned.

Table 1. Shays-Meehan, as passed, and McCain-Feingold, as considered

H.R. 417 (Shays-Meehan)--As passed a S. 1593 (McCain-Feingold)
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 prohibits personal use of campaign funds No provision
Bans party coord. expends. for House/ Senate cands. not abiding by vol. limit of $50,000 in contributions/loans from personal/family funds No provision
Independent Expenditures (Hard Money)
Defines "independent expenditure" as containing express advocacy and made without coordination with candidate, agent, or person coordinating with cand. No provision
Requires 48 hour notice of expenditures of $10,000+, until 20 days before election No provision
Bans both party independent and coordinated expends. for gen. elec. cands. No provision
Amends "contribution" to include any "coordinated activity" No provision
Defines "coordinated activity" as anything of value provided in coord. with candidate (or party or agent) to influence fed. election, regardless of whether exp. advocacy, incl. payments: (1) in cooperation/consultation with, or at request/suggestion of, candidate, party, or agent; (2) using cand.-prepared materials; (3) based on info. provided by candidate for purposes of expenditure; (4) by a spender who in that election cycle has raised funds or acted in official position for candidate; (5) by spender who used same consultants as 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 coord. with candidate to influence election regardless of whether express advocacy No provision
Deems anything of value in coord. with a candidate a contribution or expenditure No provision
Exempts lobbying contacts from consideration as coord. with candidates No provision
Bans conciliation agreements if probable cause found of knowing/willful violation of indep. expenditure disclosure rules No provision
Party Soft Money b
Bans natl. party cttee. soft money solicitation, receipt, direction, transfer, spending
Bans fed. candidates, officials, or their PACs from raising soft money in conn. with fed. election, or funds from sources beyond fed. limits/prohibitions in non-fed. elecs.
Bans party committees' use of soft money to raise funds
Bans state/local party cttees. from spending soft money for fed. elec. activity, incl.: (1) voter registration drives in last 120 days of fed. election; (2) voter identification, get-out-the-vote drives, and generic activity in conn. with election in which a fed. candidate is on ballot; and (3) communications that refer to a clearly identified fed. candidate with intent of election influence (regardless of whether express advocacy)
Allows state party spending on specified activities solely for 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
Non-Party Soft Money
Requires unions, corps., and other entities--not incl. party cttees. or religious orgs.--to disclose all exempt activities (but only internal communications referring to federal candidates), once $50,000 has been spent No provision
Requires unions to give reasonable notice to dues-paying non-members of rights to disallow political use of their funds
Prohibits party committees from raising money for, or giving to, tax-exempt groups
Issue Advocacy
Defines "express advocacy" communications as advocating election or defeat of cand. by: (1) using explicit phrases, or words/slogans that in context can have no other reasonable meaning than elec. advocacy; (2) referring to a candidate in a paid radio/TV broadcast ad that runs in affected state within 60 days of election (for Pres.: within 60 days, regardless of where ad runs); or (3) expressing unmistakable, unambiguous elec. advocacy, when taken as whole, with ltd. ref. to external events No provision
Exempts from def.: printed/Internet voting guides/records about at least 1 cand., which: (1) taken as a whole do not express unambiguous support for cands. (but may incl. agreement/disagreement with cand. views); (2) are not coord. with cand./party (but allowing questions and responses for guides); and (3) contain no words/phrases that in context have no reasonable meaning but elec. advocacy No provision
Excl. background music (but not lyrics) from determinations of express advocacy No provision
Amends "expenditure" to incl. pymt. for communications refer. to clearly identified cands., with intent of fed. elec. influence, even if not express advocacy No provision
Prohibits publicly-funded presidential candidates from coordinating soft money issue advocacy (as defined) with parties No provision
Enforcement (FEC)
Allows random audits of campaigns within 12 months after election No provision
Increases civil penalties; adds automatic penalties for late filing; allows equitable remedies in conciliation agreements No provision
Expedites enforcement procedures where there is clear/convincing evidence that a violation is occurring (or has/is about to) No provision
Allows FEC to refer suspected violations to Attorney General at any time No provision
Changes standard to begin enforcement proceedings to "reason to investigate" No provision
Inc. criminal penalties for knowing/ willful violations of contrib./expend. limits to mand. prison term of 1-10 years No provision
Allows Justice Dept. to bring criminal actions at any time, without FEC referral No provision
Allows candidates to institute civil actions for suspected violations in last 90 days of election; expedited court review No provision
Provides that $500+ contributions a cttee. plans to return (after spec. period) be placed in FEC escrow acct., pending investigation; money used for fines, penalties, investigations; contributions returned if no reason to investigate found within 180 days No provision
Disclosure (FEC)
Requires electronic disclosure by any committee exceeding financial threshold; Internet posting of info. within 24 hours No provision
Prohibits candidates from depositing contributions over $200 unless required itemized information is complete No provision
Lowers threshold for itemizing contributions to $50 (name/address only) No provision
Advertising
Amends disclaimer requirements to make them more prominent and visible No provision
Foreign Nationals
In all U.S. elections: bans direct or indirect contributions (incl. soft money), or solicitation, from foreign nationals to a candidate, party, or committee (retains permanent resident alien exemption) No provision
Ban does not apply to U.S. nationals No provision
In federal elections only: bans financial activity by a non-U.S. citizen or non-U.S. national (incl. permanent resident aliens) No provision
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 No provision
Denies "willful blindness" as a defense against charge of violating foreign natl. fundraising ban, if recipient should have known money was from foreign natl. No provision
Mandates penalties for violating foreign national ban of up to 10 years in prison, up to $1 million in fines, or both No provision
Requires House Ethics Cttee. report and recommendation (incl. privileged motion for possible expulsion) re: Member convicted of violating foreign natl. ban No provision
Creates FEC clearinghouse of information on political and lobbying activities of foreign principals and agents No provision
Study Commission
Creates temp. commission to propose fed. camp. finance reforms, to be considered by Congress under fast-track rules No provision
Miscellaneous
Requires fines up to $1 mill., 3 yrs. jail, or both, if public-funded cand. evades spend. limits by add. private fundraising No provision
Requires public-funded cands. to certify no soft money raised to benefit their races No provision
Bans solicitation of contributions, incl. soft money, by fed. officials from any govt. bldg. used for official duties No provision
Bans use of White House meals or accommodations for political fundraising No provision
Expresses sense of Congress that "controlling legal authority" bans use of federal property to raise campaign funds No provision
Bans acceptance/solicitation of anything of value to get access to Air Force 1 or 2, Marine 1 or 2, White House, or V.P. res. No provision
Requires natl. party to reimburse Treasury at fair market charter rate for use of Air Force 1 to raise party money No provision
Requires fed. cands. not holding fed. office who use fed. govt. vehicles for campaigns to reimburse govt. at full cost No provision
Requires Internet notice within 30 days (or to Sel. Intelligence Cttee.) of non-govt. passengers on Air Force 1 or 2 No provision
Bans franked mass mailings within 180 (90) days of Member's gen. (prim.) elec. No provision
Bans minors' contribs. to cands./parties No provision
Bans false representation to raise funds No provision
Requires cand. name in auth. cttee. name; bans name use by non-auth. cttee. No provision
Bans pol. cttee. currency to encourage voter turnout ("walking around money") No provision
If any part of Act/statute is held invalid, remainder of Act/statute is unaffected No provision

a Provisions of Shays-Meehan in italics reflect (three) floor amendments added to the bill.

b Generic campaign activity is defined under party soft money in S. 1593, but under non-party soft money in H.R. 417.


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