[House Report 106-294]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 106-294
======================================================================
CAMPAIGN INTEGRITY ACT OF 1999
_______
August 5, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Thomas, from the Committee on House Administration, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1867]
[Including cost estimate of the Congressional Budget Office]
The Committee on House Administration, to whom was referred
the bill (H.R. 1867) to amend the Federal Election Campaign Act
of 1971 to reform the financing of campaigns for elections for
Federal office, and for other purposes, having considered the
same, report without recommendation.
Purpose of the Legislation
In order to provide the House with an opportunity for
debate on a range of approaches to the campaign finance issue,
the Committee is submitting without recommendation one of the
more thoughtful measures which has garnered substantial support
in the 105th and 106th Congresses.
H.R. 1867 emerged in the 105th Congress as the ``bipartisan
freshman bill'' (H.R. 2183) and was offered as the base text
for the substitute amendment process on the floor in 1998.
Among its featured provisions are: a ban of national party soft
money, a ban on interstate transfers of non-federal funds,
indexing contribution limits prospectively every four years
starting in 1999, eliminating the coordinated expenditure
limits for political parties, disclosure of the identity and
cost of sponsors of broadcast ads referring to candidates by
name once spending exceeds $25,000 a year for one or
$100,000 for all federal candidates in election years, and
mandatory electronic filing for committees that raise over
$50,000.
Summary of the Legislation
section-by-section description
TITLE I--SOFT MONEY AND CONTRIBUTIONS AND EXPENDITURES OF POLITICAL
PARTIES
Section 101. Banning soft money of national political parties and
candidates
(a) Prohibits national party committees from raising,
soliciting, directing, transferring or spending funds which are
not subject to the limitations, prohibitions, and reporting
requirements of the Act (i.e., soft money).
(b) Prohibits federal candidates and officeholders from
raising soft money in connection with a federal election, money
from sources beyond federal limits and prohibitions in non-
federal elections, or soft money in connection with, or for a
communication that identifies a federal candidate. Exempts
solicitations of funds for an individual's non-federal campaign
or attendance at a state or local party fundraiser in a
candidate's home state.
(c) Bans interstate transfers between state parties of
funds not subject to the limitations, prohibitions, and
reporting requirements of the Act.
Section 102. Increasing aggregate annual limit on contributions by
individuals to political parties
(a) Raises aggregate annual limit to $50,000, with a
maximum of $25,000 to parties and $25,000 to candidates and
PACs.
(b) Raises limit on individual donations to national
parties to $25,000 per year.
Section 103. Repealing limitations on coordinated expenditures by
political parties
(a) Repeals party coordinated expenditure limits (in 2
U.S.C. Sec. 441a(d)).
Section 104. Increasing limit on contributions by multicandidate
political committees to national political parties
(a) Increases limit on multicandidate PAC contributions to
national parties to $20,000 per year.
TITLE II--INDEXING CONTRIBUTION LIMITS
Section 201. Indexing contribution limits
(a) Indexes all contribution limits in 2001, based on price
index increases in 1999 and 2000, and in 2005 and every fourth
subsequent year, based on price index increases in the previous
four years.
(b) Requires increases to be rounded to the nearest
multiple of $100.
TITLE III--EXPANDING DISCLOSURE OF CAMPAIGN FINANCE INFORMATION
Section 301. Disclosing certain ``issue advocacy'' communications
(a) Requires disclosure to the Clerk of the House or
Secretary of the Senate concerning broadcast communications
referring to House or Senate candidates--by name,
representation, or likeness, once aggregate spending exceeds
$25,000 a year for one or $100,000 for all federal candidates.
(b) Requires reports to include amount expended for such
communications, together with the person's address and phone
number (or, if appropriate, the address and phone number of the
person's principal officer).
(c) Imposes a civil fine of not more than $50,000 for
knowing violations of this provision.
Section 302. Requiring monthly filing of reports
(a) Requires monthly report filing by candidate committees
in all years and by other committees in election years.
Section 303. Requiring electronic filing for certain reports
(a) Requires electronic disclosure by all committees with
financial activity of at least $50,000.
(b) Requires FEC to make available at no cost a
standardized package of software to enable electronic filing of
reports.
Section 304. Ending ``best efforts'' exceptions for information on
contributor's occupation
(a) Ends ``best efforts'' exception for disclosure of
occupation and employer, for itemized donations of over $200.
TITLE IV--EFFECTIVE DATE
Section 401. Effective date
(a) Makes these amendments to the Act effective as of all
elections occurring after January 2001.
Committee Consideration of the Legislation
INTRODUCTION AND REFERRAL
On May 19, 1999, Mr. Hutchinson (for himself, Mr. Hill of
Montana, Mr. Hulshof, Mr. Brady of Texas, Mr. Moran of Kansas,
Mr. Petri, Mr. English, Mr. Bachus and Mr. Cook) introduced the
following bill; which was referred to the Committee on House
Administration.
HEARINGS
The Committee on House Administration held four days of a
hearing on Campaign Reform over two months in 1999.
On June 17, 1999, the Committee held the first day of the
hearing on Campaign Reform. Members present: Mr. Boehner, Mr.
Ehlers, Mr. Mica, Mr. Ewing, Mr. Hoyer, and Mr. Davis.
Witnesses: Mr. Gilchrest testified on H.R. 593 and H.R. 594.
Mr. Calvert testified on H.R. 1880. Mr. Sabo testified on H.R.
1171.
On June 29, 1999, the Committee held the second day of the
hearing on Campaign Reform. members present: Mr. Thomas, Mr.
Boehner, Mr. Ney, Mr. Mica, Mr. Ewing, Mr. Hoyer, Mr. Fattah,
and Mr. Davis. Witnesses: Mr. Shays testified on H.R. 417, Mr.
Hutchinson testified on H.R. 1867, Mr. Regula testified on H.R.
1641, Ms. Mink testified on H.R. 399 and H.R. 400, Mr. Gillmor
testified on H.R. 1778 (sharing time with Mr. Tanner), and Mr.
Andrews testified on H.R. 331.
On July 13, 1999, the Committee held the third day of the
hearing on Campaign Reform. Members present: Mr. Boehner, Mr.
Ney, Mr. Ewing, Mr. Hoyer, and Mr. Davis. Witnesses: Mr. Dreier
submitted written testimony on H.R. 32, Mr. Doolittle testified
on H.R. 1922, Mr. Burton testified on H.R. 1747, Mr. Bereuter
testified on H.R. 69, Mr. Pitts testified on H.R. 223, Mr.
Goodling testified on H.R. 2467, Mr. Price testified on H.R.
227, Mr. Paul testified on H.R. 2026 and H.R. 2027, and Mr.
Watkins testified on H.R. 696.
On July 22, 1999, the Committee held the fourth day of the
hearing on Campaign Reform. Members present: Mr. Thomas, Mr.
Boehner, Mr. Ehlers, Mr. Hoyer, Mr. Fattah, and Mr. Davis.
Witnesses: Roger Pilon, Director, Center for Constitutional
Studies, CATO Institute; Laura Murphy, Legislative Director,
American Civil Liberties Union; Don Simon, Acting President,
Common Cause; Jim Miller, Author of Monopoly Politics, Former
Director OMB; Burt Neuborne, Director, Brennan Center for Law
and Justice; James Bopp, James Madison Center for Free Speech;
Bob Dahl, Fair Government Foundation; Paul Sullivan, Americans
Back in Charge Foundation; David O'Steen, Executive Director,
National Right to Life Committee; Cheryl Perrin, Executive
Director, Campaign for America; Amy Kauffman, Research Fellow,
Hudson Institute; and Kathleen Hall Jamieson, Dean, the
Annenberg School of Communication.
markup
On Monday August 2, 1999 the Committee met to mark up H.R.
2668, H.R. 417, H.R. 1867, and H.R. 1922. The Committee
reported H.R. 1867 without recommendation by voice vote a
quorum being present. No amendments were offered.
Matters Required Under the Rules of the House
committee record votes
Clause 3(b) of House rule XIII requires the results of each
record vote on an amendment or motion to report, together with
the names of those voting for and against, to be printed in the
committee report. No recorded votes were requested during
consideration of H.R. 1867.
committee oversight findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
oversight findings of committee on government reform
The Committee states, with respect to clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, that
the Committee on Government Reform and Oversight did not submit
findings or recommendations based on investigations under
clause 4(c)(2) of rule X of the Rules of the House of
Representatives.
constitutional authority
In compliance with clause 3(d)(1) of rule XIII, the
Committee states that Article 1, Section 4 of the U.S.
Constitution grants Congress the authority to make laws
governing the time, place and manner of holding Federal
elections.
federal mandates
The Committee states, with respect to section 423 of the
Congressional Budget Act of 1974, that the bill does not
include any significant Federal mandate.
preemption clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any committee on a bill or joint
resolution to include a committee statement on the extent to
which the bill or joint resolution is intended to preempt state
or local law. The Committee states that H.R. 1867 is not
intended to preempt any state or local law.
statement on budget authority and related items
The bill does not provide new budget authority.
committee cost estimate
Clause 3(c)(2) of rule XIII requires each committee report
that accompanies a measure providing new budget authority, new
spending authority, or new credit authority or changing
revenues or tax expenditures to contain a cost estimate, as
required by section 308(a)(1) of the Congressional Budget Act
of 1974, as amended and, when practicable with respect to
estimates of new budget authority, a comparison of the total
estimated funding level for the relevant program (or programs)
to the appropriate levels under current law.
Clause 3(d)(2) of rule XIII requires committees to include
their own cost estimates in certain committee reports, which
include, when practicable, a comparison of the total estimated
funding level for the relevant program (or programs) with the
appropriate levels under current law.
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office, pursuant to
section 403 of the Congressional Budget Act of 1974.
congressional budget office cost estimate
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, the following estimate and comparison
prepared by the Director of the Congressional Budget Office
under section 403 of the Congressional Budget Act of 1974:
August 4, 1999.
Hon. William M. Thomas,
Chairman, Committee on House Administration,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1867, the Campaign
Integrity Act of 1999.
If you wish further details in this estimate, we will be
pleased to provide them. The CBO staff contact is John R.
Righter.
Sincerely,
Dan L. Crippen, Director.
Enclosure.
Effective for elections held after January 2001, H.R. 1867
would make numerous amendment to the Federal Election Campaign
Act of 1971. It would ban the solicitation and use of ``soft
money'' by national political parties and candidates, increase
certain limits on contributions and expenditures, index limits
on contributions, require additional filings by political
committees, and require electronic filing for information for
campaigns that spend or raise more than $50,000. Subject to the
availability of appropriated funds, CBO estimates that
implementing H.R. 1867 would cost the Federal Election
Commission less than $500,000 a year.
Because H.R. 1867 could affect the collection of fines and
penalties from violations of campaign finance laws, pay-as-you-
go procedure would apply. CBO estimates that any change in the
amount of penalties and fines, which are recorded as
governmental receipts, would not be significant.
H.R. 1867 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would impose no
costs on state, local, or tribal governments. The bill would
create new private-sector mandates, as defend in UMRA, on
candidates, political parties, state party organizations, and
certain individuals and advocacy groups. CBO has not yet
completed an estimate of the cost of those mandates, but will
provide such as estimate at a later date.
The CBO staff contact is John R. Righter. This estimate was
approved by Robert A. Sunshine, Deputy Assistant Director for
Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
FEDERAL ELECTION CAMPAIGN ACT OF 1971
* * * * * * *
organization of political committees
Sec. 302. (a) * * *
* * * * * * *
[(i) When the treasurer] (i)(1) Except as provided in
paragraph (2), when the treasurer of a political committee
shows that best efforts have been used to obtain, maintain, and
submit the information required by this Act for the political
committee, any report or any records of such committee shall be
considered in compliance with this Act or chapter 95 or chapter
96 of the Internal Revenue Code of 1954.
(2) Paragraph (1) shall not apply with respect to information
regarding the occupation or the name of the employer of any
individual who makes a contribution or contributions
aggregating more than $200 during a calendar year (as required
to be provided under subsection (c)(3)).
* * * * * * *
reports
Sec. 304. (a)(1) * * *
* * * * * * *
(2) If the political committee is the principal campaign
committee of a candidate for the House of Representatives or
for the Senate--
(A) in any calendar year during which there is
regularly scheduled election for which such candidate
is seeking election, or nomination for election, the
treasurer shall file the following reports:
(i) * * *
* * * * * * *
[(iii) additional quarterly reports, which
shall be filed no later than the 15th day after
the last day of each calendar quarter, and
which shall be complete as of the last day of
each calendar quarter: except that the report
for the quarter ending December 31 shall be
filed no later than January 31 of the following
calendar year; and]
(iii) monthly reports, which shall be filed
no later than the 20th day after the last day
of the month and shall be complete as of the
last day of the month, except that, in lieu of
filing the reports otherwise due in November
and December of the year, a pre-general
election report shall be filed in accordance
with clause (i), a post-general election report
shall be filed in accordance with clause (ii),
and a year end report shall be filed no later
than January 31 of the following calendar year.
* * * * * * *
[(4) All political committees other than authorized
committees of a candidate shall file either--
[(A)(i) quarterly reports, in a calendar year in
which a regularly scheduled general election is held,
which shall be filed no later than the 15th day after
the last day of each calendar quarter: except that the
report for the quarter ending on December 31 of such
calendar year shall be filed no later than January 31
of the following calendar year.
[(ii) a pre-election report, which shall be filed no
later than the 12th day before (or posted by registered
or certified mail no later than the 15th day before)
any election in which the committee makes a
contribution to or expenditure on behalf of a candidate
in such election, and which shall be complete as of the
20th day before the election;
[(iii) a post-general election report, which shall be
filed no later than the 30th day after the general
election and which shall be complete as of the 20th day
after such general election; and
[(iv) in any other calendar year, a report covering
the period beginning January 1 and ending June 30,
which shall be filed no later than July 31 and a report
covering the period beginning July 1 and ending
December 31, which shall be filed no later than January
31 of the following calendar year; or
[(B) monthly reports in all calendar years which
shall be filed no later than the 20th day after the
last day of the month and shall be complete as of the
last day of the month, except that, in lieu of filing
the reports otherwise due in November and December of
any year in which a regularly scheduled general
election is held, a pre-general election report shall
be filed in accordance with paragraph (2)(A)(i), a
post-general election report shall be filed in
accordance with paragraph (2)(A)(ii), and a year end
report shall be filed no later than January 31 of the
following calendar year.]
(4)(A) In a calendar year in which a regularly scheduled
general election is held, all political committees other than
authorized committees of a candidate shall file--
(i) monthly reports, which shall be filed no later
than the 20th day after the last day of the month and
shall be complete as of the last day of the month,
except that, in lieu of filing the reports otherwise
due in November and December of the year, a pre-general
election report shall be filed in accordance with
clause (ii), a post-general election report shall be
filed in accordance with clause (iii), and a year end
report shall be filed no later than January 31 of the
following calendar year;
(ii) a pre-election report, which shall be filed no
later than the 12th day before (or posted by registered
or certified mail no later than the 15th day before)
any election in which the committee makes a
contribution to or expenditure on behalf of a candidate
in such election, and which shall be complete as of the
20th day before the election; and
(iii) a post-general election report, which shall be
filed no later than the 30th day after the general
election and which shall be complete as of the 20th day
after such general election.
(B) In any other calendar year, all political committees
other than authorized committees of a candidate shall file a
report covering the period beginning January 1 and ending June
30, which shall be filed no later than July 31 and a report
covering the period beginning July 1 and ending December 31,
which shall be filed no later than January 31 of the following
calendar year.
* * * * * * *
[(8) The requirement for a political committee to file a
quarterly report under paragraph (2)(A)(iii) or paragraph
(4)(A)(i) shall be waived if such committee is required to file
a pre-election report under paragraph (2)(A)(i), or paragraph
(4)(A)(ii) during the period beginning on the 5th day after the
close of the calendar quarter and ending on the 15th day after
the close of the calendar quarter.]
* * * * * * *
(11)(A) The Commission shall permit reports required by this
Act to be filed and preserved by means of computer disk or any
other appropriate electronic format or method, as determined by
the Commission, except that the Commission shall require the
reports to be filed and preserved by such means, format, or
method, unless the aggregate amount of contributions or
expenditures (as the case may be) reported by the committee in
all reports filed with respect to the election involved (taking
into account the period covered by the report) is less than
$50,000.
* * * * * * *
(C) The Commission shall make available without charge a
standardized package of software to enable persons filing
reports by electronic means to meet the requirements of this
paragraph.
[(C)] (D) As used in this paragraph, the term ``report''
means, with respect to the Commission, a report, designation,
or statement required by this Act to be filed with the
Commission.
* * * * * * *
enforcement
Sec. 309. (a) * * *
* * * * * * *
(b) Before taking any action under subsection (a) against
any person who has failed to file a report required under
section 304(a)(2)(A)(iii) [for the calendar quarter] for the
month immediately preceding the election involved, or in
accordance with section 304(a)(2)(A)(i), the Commission shall
notify the person of such failure to file the required reports.
If a satisfactory response is not received within 4 business
days after the date of notification, the Commission shall,
pursuant to section 311(a)(7), publish before theelection the
name of the person and the report or reports such person has failed to
file.
* * * * * * *
limitations on contributions and expenditures
Sec. 315. (a)(1) No person shall make contributions--
(A) * * *
* * * * * * *
(B) to the political committees established and
maintained by a national political party, which are not
the authorized political committees of any candidate,
in any calendar year which, in the aggregate, exceed
[$20,000] $25,000; or
* * * * * * *
(2) No multicandidate political committee shall make
contributions--
(A) * * *
* * * * * * *
(B) to the political committees established and
maintained by a national political party, which are not
the authorized political committees of any candidate,
in any calendar year, which, in the aggregate, exceed
[$15,000] $20,000; or
* * * * * * *
(3) No individual shall make contributions aggregating more
than $25,000 [in any calendar year] to political committees of
political parties, or contributions aggregating more than
$25,000 to any other persons, in any calendar year. For
purposes of this paragraph, any contribution made to a
candidate in a year other than the calendar year in which the
election is held with respect to which such contribution is
made, is considered to be made during the calendar year in
which such election is held.
* * * * * * *
(c)(1) * * *
* * * * * * *
(3)(A) The amount of each limitation established under
subsection (a) shall be adjusted as follows:
(i) For calendar year 2001, each such amount shall be
equal to the amount described in such subsection,
increased (in a compounded manner) by the percentage
increase in the price index (as defined in subsection
(c)(2)) for each of the years 1999 through 2000.
(ii) For calendar year 2005 and each fourth
subsequent year, each such amount shall be equal to the
amount for the fourth previous year (as adjusted under
this subparagraph), increased (in a compounded manner)
by the percentage increase in the price index for each
of the four previous years.
(B) In the case of any amount adjusted under this
subparagraph which is not a multiple of $100, the amount shall
be rounded to the nearest multiple of $100.
* * * * * * *
(d)[(1)] Notwithstanding any other provision of law with
respect to limitations on expenditures or limitations on
contributions, the national committee of a political party and
a State committee of a political party, including any
subordinate committee of a State committee, may make
expenditures in connection with the general election campaign
of candidates for Federal office[, subject to the limitations
contained in paragraphs (2) and (3) of this subsection].
[(2) The national committee of a political party may not
make any expenditure in connection with the general election
campaign of any candidate for President of the United States
who is affiliated with such party which exceeds an amount equal
to 2 cents multiplied by the voting age population of the
United States (as certified under subsection (e)). Any
expenditure under this paragraph shall be in addition to any
expenditure by a national committee of a po-
litical party serving as the principal campaign committee of a
candidate for the office of President of the United States.
[(3) The national committee of a political party, or a
State committee of a political party, including any subordinate
committee of a State committee, may not make any expenditure in
connection with the general election campaign of a candidate
for Federal office in a State who is affiliated with such party
which exceeds--
[(A) in the case of a candidate for election to the
office of Senator, or of Representative from a State
which is entitled to only one Representative, the
greater of--
[(i) 2 cents multiplied by the voting age
population of the State (as certified under
subsection (e)); or
[(ii) $20,000; and
[(B) in the case of a candidate for election to the
office of Representative, Delegate, or Resident
Commissioner in any other State, $10,000.]
* * * * * * *
ban on use of soft money by national political parties and candidates
Sec. 323. (a) National Parties.--A national committee of a
political party, including the national congressional campaign
committees of a political party, and any officers or agents of
such party committees, may not solicit, receive, or direct any
contributions, donations, or transfers of funds, or spend any
funds, which are not subject to the limitations, prohibitions,
and reporting requirements of this Act. This subsection shall
apply to any entity that is established, financed, maintained,
or controlled (directly or indirectly) by, or acting on behalf
of, a national committee of a political party, including the
national congressional campaign committees of a political
party, and any officers or agents of such party committees.
(b) Candidates.--
(1) In general.--No candidate for Federal office,
individual holding Federal office, or any agent of such
candidate or officeholder may solicit, receive, or
direct--
(A) any funds in connection with any Federal
election unless such funds are subject to the
limitations, prohibitions and reporting
requirements of this Act;
(B) any funds that are to be expended in
connection with any election for other than a
Federal office unless such funds are not in
excess of the amounts permitted with respect to
contributions to Federal candidates and
political committees under section 315(a)(1)
and (2), and are not from sources prohibited
from making contributions by this Act with
respect to elections for Federal office; or
(C) any funds on behalf of any person which
are not subject to the limitations,
prohibitions, and reporting requirements of
this Act if such funds are for the purpose of
financing any activity on behalf of a candidate
for election for Federal office or any
communication which refers to a clearly
identified candidate for election for Federal
office.
(2) Exception for certain activities.--Paragraph (1)
shall not apply to--
(A) the solicitation or receipt of funds by
an individual who is a candidate for a non-
Federal office if such activity is permitted
under State law for such individual's non-
Federal campaign committee; or
(B) the attendance by an individual who holds
Federal office or is a candidate for election
for Federal office at a fundraising event for a
State or local committee of a political party
of the State which the individual represents or
seeks to represent as a Federal officeholder,
if the event is held in such State.
(c) Prohibiting Transfers of Non-Federal Funds Between
State Parties.--A State committee of a political party may not
transfer any funds to a State committee of a political party of
another State unless the funds are subject to the limitations,
prohibitions, and reporting requirements of this Act.
(d) Applicability to Funds From All Sources.--This section
shall apply with respect to funds of any individual,
corporation, labor organization, or other person.
* * * * * * *
Views of committee members
Clause 3(a) of rule XIII requires each committee to afford
a two day opportunity for members of the committee to file
supplemental, minority, or additional views and to include the
views in its report. The Committee on House Administration
Minority members have submitted dissenting views.
MINORITY VIEWS
H.R. 1867 does seek to address the two key problems in our
campaign finance system, the proliferation of unlimited soft
money and undisclosed issue advocacy. However, it is not a
comprehensive effort to address either. It fails to staunch the
total flow of soft money because it only addresses soft money
activities conducted by the national political committees. To
be sure, addressing soft money raised by national political
parties and Federal candidates is an essential first step to
ridding politics of unlimited, unregulated contributions.
however, H.R. 1867 would not regulate, any more rigorously than
current law does, soft money activities that are conducted by
State and local political parties which have an indirect but
unmistakable impact on candidates running in federal elections.
H.R. 1867 would not stop a wealthy tobacco company from
making a soft money contribution. Rather, it would simply
redirect the contribution to the state party, possibly
simultaneously attracting less public scrutiny. under the H.R.
1867 soft money ``ban'' corporate and union contributions could
still flood state and local parties in all 50 states. These
contributions in turn could be spend on ``generic'' party state
and local ``grass roots'' activities that boost a federal
candidate's prospects. Failure to address soft money on the
state and local level, even if it is prohibited on the national
level, will only preserve the loophole so many Americans
deplore, encouraging wealthy individuals and corporations to
divert huge contributions that now go to national non-federal
accounts to state parties. As a consequence, it is unlikely
that H.R. 1867 would shrink the total volume of unregulated
soft money, or neutralize its impact on federal elections. The
bill merely re-channels where special interests send these
unlimited contributions.
The loopholes in H.R. 1867's reforms are not limited to
soft money. Unlike the Shays-Meehan proposal reported out of
the Committee, H.R. 1867 does not seek to make special
interests that use the issue advocacy loophole to run thinly
disguised campaign ads play by the same rules that govern the
candidates themselves. H.R. 1867 contains no requirement that
hard dollars be used to pay for ``sham'' issue ads, and
requires disclosure of the advertising only when it exceeds
$25,000.
Perhaps most troubling, through, H.R. 1867 purports to
require disclosure of issue advertising, but in fact fails to
provide to the voter the necessary information about who is
paying for these confusing advertisements. While H.R. 1867
requires disclosure of the amount of money spent on a
particular advertisement, unlike every other disclosure
provision in the campaign finance system, it does not require
disclosure of the source of funds used to pay for advertising.
In her testimony before the Committee on July 22, 1999, Dean
Kathleen Hall Jamison of the Annenberg School of Communication
testified about the difficult that voters have in determining
how much credibility to lend to a communication when they do
not know the source of the communication. Without real
disclosure of the sources of money funding sham issue ads, the
ability of the voters to make informed decisions is severely
undermined. For these reasons, we urge passage of H.R. 419 as a
more comprehensive alternative to H.R. 1867.
Steny H. Hoyer.
Chaka Fattah.
Jim Davis.