[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[House]
[Pages H7994-H7996]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CAMPAIGN FINANCE REFORM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California [Mr. Farr] is recognized for 5 minutes.
  Mr. FARR of California. Mr. Speaker, I rise tonight to bring to the 
attention of this House that there is a war of words being waged in 
this House on the issue of campaign finance reform, and the No. 1 form 
of ammunition is the Dear Colleague letters that are going back and 
forth.
  I know, because I have sent several of these missives myself, and 
also been the recipient of a couple of them.
  I would like to call a truce, if only temporarily, and will include 
the Congressional Research Service Report No. 96-628 GOV for the 
Record. I do this, Mr. Speaker, so that all the Members and the public 
can see laid out in chart style on a side-by-side comparison of the 
Thomas-Gingrich campaign finance bill and the Farr campaign finance 
bill, along with the current law.
  The CRS report is done in its usual nonpartisan, unbiased style, and 
I commend it to everyone for solid information on the two bills that 
will be up for a vote next week before this body.
  Mr. Speaker, I include for the Record the report.

                        CRS Report for Congress


campaign finance bills in the 104th congress: summary and comparison of 
        major provisions of h.r. 3760, h.r. 2566, and h.r. 3505

       This report summarizes and compares major provisions of 
     three campaign finance reform bills offered in the House 
     during the 104th Congress. It provides capsule summaries of 
     those sections which address the central focus of the reform 
     debate: regulating the flow of money in federal elections 
     through adding, deleting, or adjusting limits on expenditures 
     and funding sources. These bills also contain provisions to 
     improve disclosure and enforcement of federal election law; 
     these and most miscellaneous provisions are omitted from the 
     comparison.
       H.R. 3760, the Campaign Finance Reform Act of 1996, was 
     introduced by Representative Bill Thomas on July 9, 1996 and 
     ordered reported by the House Oversight Committee on July 11, 
     1996. It is co-sponsored by the House Republican leadership. 
     It represents a significant departure from Democratic-
     sponsored bills which passed the House in recent Congresses, 
     which sought a voluntary system of spending limits and cost-
     saving benefits (or public funding) to complying candidates. 
     H.R. 3760 seeks to promote greater competition and more 
     broadly-based funding by augmenting the role of political 
     parties and local citizens in the financing of campaigns. It 
     thus attempts to offset the role played by wealthy candidates 
     and political action committees (PACs) in recent elections.
       H.R. 2566, the Bipartisan Clean Congress Act of 1995, was 
     introduced by Representatives Linda Smith, Martin Meehan, and 
     Christopher Shays on October 31, 1995. This bill is based on 
     recent House-passed bills which offered a system of voluntary 
     spending limits in House elections, in exchange for certain 
     benefits. It departs from previous bills in replacing public 
     funding with cost-reduction benefits to participating 
     candidates. A prohibition on PAC contributions and 
     expenditures in federal elections is another prominent 
     feature.
       H.R. 3505, the American Political Reform Act, was 
     introduced by Representative Sam Farr on May 22, 1996. Co-
     sponsored by the House Democratic leadership, it closely 
     resembles the House-passed bill of the 103d Congress (H.R. 
     3). Like H.R. 2566, it features voluntary spending limits and 
     cost-saving benefits. Unlike that bill, it offers an 
     aggregate PAC receipts limit and lower PAC contribution 
     limit, rather than a PAC ban in federal elections.

       TABLE 1.--CAMPAIGN FINANCE LEGISLATION BEFORE THE 104TH CONGRESS: COMPARISON OF SELECTED PROVISIONS      
----------------------------------------------------------------------------------------------------------------
                                                              H.R. 2566 (Smith/Meehan/                          
           Current law                 H.R. 3760 (Thomas)              Shays)               H.R. 3505 (Farr)    
----------------------------------------------------------------------------------------------------------------
                                         LIMITATIONS ON SOURCES OF FUNDS                                        
                                                                                                                
                                              In general--Indexing                                              
                                                                                                                
Limits set in 1974 and 1976 FECA   All limits indexed         No provision............  No provision.           
 Amendments, not indexed for        retroactively to 1977,                                                      
 inflation.                         based on CPI, as of 1997                                                    
                                    and every 2 years                                                           
                                    thereafter (rounded to                                                      
                                    next lowest $500                                                            
                                    increment)\1\.                                                              
                                                                                                                

[[Page H7995]]

                                                                                                                
                                           Political Action Committees                                          
                                                                                                                
                                                  To candidates                                                 
                                                                                                                
Limit for multicandidate           Abolishes multicandidate   Bans PAC contributions &  Lowers limit to $8,000  
 committee (which most PACs are)    committee status; PAC      expenditures in federal   per election cycle;    
 is $5,000 per election; no limit   limit=individual limit:    elections (If            Aggregate PAC receipts  
 on PAC receipts by candidates.     $2,500 \1\ per election.   unconstitutional:         limit of 33\1/3\% of   
                                                                lowers limit to $1,000   spending limit         
                                                               per election;             ($200,000), plus       
                                                                sets an aggregate        $100,000 if runoff,    
                                                               limit on PAC receipts     plus $66,600 if close  
                                                               by candidates of 25% of   primary.               
                                                               spending limit                                   
                                                               ($150,000).                                      
                                                                                                                
                                                   To parties                                                   
                                                                                                                
$5,000 per year to a state         $43,500 \1\ per year to a  No provision............  $15,000 per year to any 
 committee (and its local           state or national                                    state committee (incl. 
 affiliates); $15,000 per year to   committee (same as for                               Grassroots Fund);      
 a national committee.              individual).                                        $25,000 per year to a   
                                                                                         national committee.    
                                                                                                                
                                                 Leadership PACs                                                
                                                                                                                
Permitted as any other PAC.......  Prohibited after 2 year    Prohibited upon           Prohibited upon         
                                    phase-out (by end of       enactment, with 1 year    enactment, with 2 year 
                                    1998 election); bans       phase-out.                phase-out.             
                                    joint fundraising                                                           
                                    committees.                                                                 
                                                                                                                
                                                   Individuals                                                  
                                                                                                                
                                  Aggregate limit on all federal contributions                                  
                                                                                                                
$25,000 per year.................  $73,000\1\ per year        No provision............  $100,000 per election   
                                    (contributions to any                                cycle, with up to      
                                    party committee                                      $25,000 per year to    
                                    exempted).                                           candidates and $20,000 
                                                                                         per year to state      
                                                                                         parties.               
                                                                                                                
                                                  To candidates                                                 
                                                                                                                
$1,000 per election..............  $2,500\1\ per election     Under voluntary system:   No provision.           
                                    (limits lifted for         $2,000 to participating                          
                                    candidate whose opponent   candidate if opponent                            
                                    spends more than           exceeds spending limits.                         
                                    $150,000 in primary or                                                      
                                    general.                                                                    
                                                                                                                
                                                    To PAC's                                                    
                                                                                                                
$5,000 per year..................  $2,500\1\ per year.......  No provision............  No provision.           
                                                                                                                
                                                   To parties                                                   
                                                                                                                
$5,000 per year to a state         $58,500\1\ per year to a   No provision............  $20,000 per year to a   
 committee (and local               state or national                                    state committee        
 affiliates); $20,000 per year to   committee (exempt from                               (including its         
 a national committee.              aggregate annual limit).                             Grassroots Fund).      
                                                                                                                
                                                     Parties                                                    
                                                                                                                
                                                  To candidates                                                 
                                                                                                                
$5,000 per election from a state   $14,500\1\ per election    No provision............  $5,000 aggregate limit  
 committee (including local         from a state or national                             on all contributions   
 affiliates or a national           committee.                                           from state and local   
 committee.                        Party committees may                                  committees of same     
                                    exceed limits to offset                              political party.       
                                    (and match):                                                                
                                     incumbents' carryover                                                      
                                    from previous cycle;                                                        
                                     general election                                                           
                                    opponents whose personal                                                    
                                    spending exceeds                                                            
                                    individual contribution                                                     
                                    limit.                                                                      
National and state committees      Exempts from limits costs  No provision............  No provision.           
 subject to limits (under 2         of party communications                                                     
 U.S.C. 441a(d)) on coordinated     with members                                                                
 expenditures on behalf of          (contributors, voters                                                       
 general election candidates.       registered with party,                                                      
                                    voters in recent party                                                      
                                    primary, self-identified                                                    
                                    partisans).                                                                 
                                                                                                                
                                                     To PACs                                                    
                                                                                                                
$5,000 per year..................  $14,500\1\ per year......  No provision............  No provision.           
                                                                                                                
                                                   Candidates                                                   
                                                                                                                
No limits on contributions or      Spending above individual  Under voluntary system:   Under voluntary system: 
 loans to own campaign.             contribution limit in      limited to $60,000 per    limited to $50,000 per 
                                    general election           cycle; if candidate       cycle; if candidate    
                                    triggers lifting of        exceeds limit, triggers   exceeds limit, triggers
                                    limit on party             lifting of spending and   increased spending     
                                    contributions (as match)   large donor limits, and   limit for participating
                                    to opponent.               doubled contribution      opponents.             
                                   Spending above $150,000     limit for participating                          
                                    in primary or general      opponents.                                       
                                    triggers lifting of                                                         
                                    individual and in-                                                          
                                    district limits for                                                         
                                    opponent.                                                                   
                                                                                                                
                                         In-state and district receipts                                         
                                                                                                                
No geographical restriction on     House candidates must      House candidates must     No provision.           
 campaign receipts.                 raise at least 50% of      raise at least 60% of                            
                                    funds from individual      funds from individual                            
                                    residents of district.     residents of state; for                          
                                                               eligibility threshold                            
                                                               in voluntary system,                             
                                                               50% of required amount                           
                                                               from in-state must come                          
                                                               from in-district.                                
                                                                                                                
                                              Large donor receipts                                              
                                                                                                                
No restrictions on campaign        No provision.............  House candidates can      House candidates can    
 receipts.                                                     accept up to 25% of       accept up to 33\1/3\%  
                                                               voluntary spending        of spending limit      
                                                               limit ($150,000) in       ($200,000) in          
                                                               individual donations in   individual donations in
                                                               excess of $250.           excess of $200, plus   
                                                                                         $100,000 if runoff,    
                                                                                         plus $66,600 if close  
                                                                                         primary.               
                                                                                                                
                                                    Lobbyists                                                   
                                                                                                                
Subject to same contribution       No provision.............  Contributions from        No provision.           
 limits as any individual ($1,000                              registered lobbyists                             
 per candidate, per election).                                 reduced to $100 per                              
                                                               candidate, per election.                         
                                                                                                                
                                            INDEPENDENT EXPENDITURES                                            
                                                                                                                
No limit on expenditures           Clarifies definition of    Amends definition of      Amends definition of    
 expressly advocating election or   independent expenditure,   independent expenditure   independent expenditure
 defeat of clearly identified       and adds definition of     to include express        to include express     
 candidates, if made without        express advocacy.          advocacy (broadly         advocacy (broadly      
 cooperation or consultation with                              defined); enumerates      defined); enumerates   
 any candidate.                                                activities and agents     activities and agents  
                                                               which would indicate      which would indicate   
                                                               collaboration (thus       collaboration (thus    
                                                               precluding independent    precluding independent 
                                                               expenditure).             expenditure).          
                                                                                                                
                                                    BUNDLING                                                    
                                                                                                                
No restriction on collecting       Prohibits PACs and         Counts contributions      Counts contributions    
 donations to candidates by         registered lobbyists       raised by conduit         raised by conduit      
 conduits or intermediaries;        from acting as conduit     against conduit's         against conduit's      
 contribution counts against        for contributions.         contribution limit (as    contribution limit (as 
 donor's limit.                                                well as donor's), if      well as donor's), if   
                                                               conduit is a: PAC,        conduit is a: connected
                                                               party committee, or       PAC; party committee;  
                                                               their employees and       union, corporation, or 
                                                               agents; union,            partnership; registered
                                                               corporation, registered   lobbyist; or any       
                                                               lobbyist, or anyone       employee or agent      
                                                               acting in their behalf.   acting in their behalf.
                                                                                                                
                                                   SOFT MONEY                                                   
                                                                                                                
                                          Party and Candidate Activity                                          
                                                                                                                
Only money raised in amounts and   Prohibits national party   Prohibits national party  Prohibits national party
 from sources permitted under       committees from using      committees from           committees from        
 federal law may be used in         non-federal money for      raising, soliciting, or   raising, soliciting, or
 federal elections; FEC             mixed activities (incl.    transferring soft         transferring soft      
 regulations contain formulae for   registration, get-our-     money.                    money.                 
 allocating costs of ``mixed''      the-vote, and absentee    Prohibits state and       Requires state          
 activities, which benefit both     ballot efforts.            local party committees    activities in          
 federal and non-federal           Party committees may use    from spending soft        connection with federal
 elections; allocation can be       non-federal money for      money for mixed           activities to be funded
 based on time and space of         mixed candidate-specific   activities or for         with federal money     
 communication, ballot              activities, if allocated   generic party             through State Party    
 composition, funds expended,       on time and space basis.   activities and vote       Grassroots Funds.      
 funds received, or fixed or       Exempts party slate         drives in a federal      Prohibits use of soft   
 minimum percentage.                lists, volunteer           election year.            money for any activity 
                                    mailings and phone        Prohibits party            that significantly     
                                    banks, and collateral      committees from using     affects a federal      
                                    materials from             soft money to raise       election.              
                                    contribution or            funds.                   Prohibits federal       
                                    expenditure definition,   Prohibits federal          candidates and         
                                    if allocated by ballot     candidates and            officeholders from     
                                    composition method.        officeholders from        raising soft money.    
                                                               raising soft money.                              
                                                                                                                
                                               Tax-Exempt Activity                                              
                                                                                                                
No provision in FECA.............  No provision.............  Prohibits party           Prohibits federal       
                                                               committees from raising   candidates and         
                                                               money for tax-exempt      officeholders from     
                                                               organizations.            raising money for a tax-
                                                              Prohibits federal          exempt organization    
                                                               candidates from           which he or she        
                                                               establishing,             establishes, maintains,
                                                               maintaining, or           or controls and which  
                                                               controlling a tax-        is substantially       
                                                               exempt organization       involved in voter      
                                                               which raises funds from   registration or get-out-
                                                               the public.               the-vote drives.       
                                                              Prohibits federal                                 
                                                               candidates from raising                          
                                                               money for a tax-exempt                           
                                                               organization involved                            
                                                               in get-out-the-vote and                          
                                                               registration drives.                             
                                                                                                                

[[Page H7996]]

                                                                                                                
                                                  MISCELLANEOUS                                                 
                                                                                                                
                                   Approval for payroll       Franking                                          
                                    deduction                 Bans unsolicited mass                             
                                   Requires employees who      mailings in election                             
                                    make PAC contributions     year, until after                                
                                    through payroll            general election.                                
                                    deduction to give                                                           
                                    authorization at least                                                      
                                    annually, with rights to                                                    
                                    withdraw approval at any                                                    
                                    time; employers must                                                        
                                    inform them of these                                                        
                                    rights at least annually.                                                   
                                                                                                                
                        VOLUNTARY SPENDING LIMITS AND PUBLIC BENEFITS IN HOUSE ELECTIONS                        
                                                                                                                
                                         Limits on Campaign Expenditures                                        
                                                                                                                
No provision.....................  No provision.............  $600,000 limit in 2 year  $600,000 limit in 2 year
                                                               cycle, plus $120,000 if   cycle, plus $200,000 if
                                                               runoff and $180,000 if    runoff and $200,000 if 
                                                               close primary winner;     close primary winner;  
                                                              $60,000 limit on          $50,000 limit on        
                                                               candidate's personal      candidate's personal   
                                                               funds;                    funds;                 
                                                              Limit raised (and         Limit raised for        
                                                               individual contribution   participant if non-    
                                                               limit doubled) for        complying opponent     
                                                               participant if non-       exceeds certain limits;
                                                               complying opponent       Limit raised to offset  
                                                               exceeds certain limits;   extent of independent  
                                                              Limit raised to offset     expenditures, once over
                                                               extent of independent     $5,000 total or $2,500 
                                                               expenditures against      by one source; limit   
                                                               participant or for        removed if $15,000     
                                                               opponent, one in excess   spent, which parties   
                                                               of $25,000 overall.       can match (beyond their
                                                                                         contribution limits).  
                                                                                                                
                                      Fundraising Threshold for Eligibility                                     
                                                                                                                
No provision.....................  No provision.............  $60,000 in individual     $60,000 in individual   
                                                               contributions of $200     contributions of $200  
                                                               or less, at least 60%     or less.               
                                                               in-state, with half of                           
                                                               in-state amount from in-                         
                                                               district.                                        
                                                                                                                
                                      Benefits for Participating Candidates                                     
                                                                                                                
No provision.....................  No provision.............  Broadcast rate of 50% of  Broadcast rate of 50% of
                                                               lowest unit rate in       lowest unit rate in    
                                                               last 30 days of primary   last 30 days of primary
                                                               and last 60 days in       and last 60 days in    
                                                               general election;         general election;      
                                                              3 mailings per eligible   Unlimited mailings at   
                                                               voter at non-profit 3rd   non-profit 3rd class   
                                                               class bulk rate.          bulk rate.             
                                                                                                                
                                   Penalties for Non-Participating Candidates                                   
                                                                                                                
No provision.....................  No provision.............  No provision............  35% tax on receipts of  
                                                                                         candidates who exceed  
                                                                                         spending limits;       
                                                                                        Not eligible for lowest 
                                                                                         unit rate for broadcast
                                                                                         time.                  
----------------------------------------------------------------------------------------------------------------
\1\ Dollar amounts with asterisks are estimated indexed values.                                                 



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