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The McCain-Feingold-Cochran Campaign Reform Bill

The McCain-Feingold-Cochran campaign reform bill is similar to the bills that were debated in the 105th and 106th Congresses. A strong bipartisan majority of both the House and the Senate favors this reform. It contains the following major components:

A Ban on Soft Money. The bill would prohibit all soft money contributions to the national political parties from corporations, labor unions, and wealthy individuals. State parties that are permitted under state law to accept these unregulated contributions would be prohibited from spending them on activities relating to federal elections, including advertising that supports or opposes a federal candidate. In addition, federal candidates would be prohibited from raising soft money. These provisions would shut down the Washington soft money machine, prohibiting the $100,000, $250,000 and even $500,000 contributions that for the last decade have flowed to the political parties.

McCain-Feingold-Cochran would also double the amount of "hard" money individuals may contribute to state parties for use in federal elections, from $5,000 to $10,000. It would increase the amount of "hard" money an individual may contribute in aggregate to all federal candidates, parties, and PACs in a single year from $25,000 to $30,000.

Restrictions on "Phony Issue Ads" Run by Corporations and Unions (The Snowe-Jeffords Amendment). First adopted as part of McCain-Feingold during the Senate's February 1998 campaign finance debate, the Snowe-Jeffords amendment addresses the explosion of thinly-veiled campaign advertising funded by corporate and union treasuries. These ads skirt federal election law by avoiding the use of direct entreaties to "vote for" or "vote against" a particular candidate. Under the bill, labor unions and for-profit corporations would be prohibited from spending their treasury funds on "electioneering communications." "Electioneering communications" are defined as radio or TV ads that refer to a clearly identified candidate or candidates and appear within 30 days of a primary or 60 days of a general election. This definition does not include any printed communication, direct mail, voter guides, or the Internet. It would also not cover issue advertising that does not identify a specific candidate or appears outside of the 30/60 day pre-election window.

The Snowe-Jeffords amendment permits 501(c)(4) non-profit corporations to make electioneering communications as long as they use only individual contributions (not corporate or union funds) and make certain disclosures. The amendment thus prevents unions or corporations from laundering funds through non-profits to make electioneering communications.

The amendment also provides that a group making electioneering communications that total $10,000 or more in an election cycle must disclose its identity, the cost of the communication, and the names and addresses of all contributors of $1,000 or more to the sponsor of the communication within the cycle. If the group makes expenditures on electioneering communications from a separate bank account to which only individuals can contribute, it need only disclose the large donors to that account.

The Snowe-Jeffords amendment treats corporations and unions fairly and equally. It does not prohibit any election ad, nor does it place limits on spending by outside organizations. But it will give the public crucial information about the election activities of independent groups and prevent corporate and union treasury money from being spent to influence elections.

Strict Codification of the "Beck" Decision. The bill would require labor unions to notify non-union employees that if they file an objection, they are entitled to have their agency fees reduced by an amount equal to the portion of fees used for political purposes.

Foreign Money. McCain-Feingold-Cochran would strengthen current law to prohibit foreign nationals from making any contributions in a federal, state or local election. The foreign money abuses from the 1996 election that captured so much attention would be entirely shut down by this proposal.

Greater Disclosure and Stronger Election Laws. McCain-Feingold-Cochran contains a number of provisions designed to improve disclosure of campaign finance information and strengthen enforcement of the law. The bill would: (1) strengthen current law to make it clear that it is unlawful to raise or solicit campaign contributions on federal property, including the White House and the United States Congress: (2) bar federal candidates from converting campaign funds for personal use, such as a mortgage payment or country club membership; (3) specify circumstances in which activities by outside groups or parties will be considered coordinated with candidates; and (4) provide more timely disclosure of independent expenditures.