Topic:
CAMPAIGN FINANCE; CAMPAIGNS (GENERAL); CONTRACTORS; CORPORATIONS; ELECTIONS (GENERAL); LOBBYING; STATISTICAL INFORMATION;
Location:
CAMPAIGNS - FINANCE;

OLR Research Report


August 2, 2005

 

2005-R-0605

INDIVIDUAL AND CORPORATE CONTRIBUTIONS TO CANDIDATES

By: Sandra Norman-Eady, Chief Attorney

Individual and corporate contributions to candidates vary widely by state and elective office. Montana’s individual limit of $ 100 to legislative races is the lowest and states such as Illinois and New Mexico have the potential to be among the highest because they do not cap individual or corporate limits. Several states, including Connecticut, prohibit direct corporate contributions and only allow businesses to make contributions through a political action committee (PAC) using a separate, segregated account. Table 1 shows the limits on individual and corporate contributions to candidates by state.

As a general rule, registered lobbyists and contractors are bound by the same limits on campaign contributions as individuals or corporations. Client or principal lobbyists and incorporated contractors are subject to the limit on corporate contributions, while communicator lobbyists and unincorporated contractors are subject to the limits for individuals. Connecticut uses the term “client” while other states use “principal” to refer to lobbyists who employ others (communicators) to lobby for them, while communicator lobbyists do so on behalf of one or more client lobbyists. In Connecticut, both must register once every two years with the Office of State Ethics. Massachusetts appears to be the only state that sets a contribution limit for lobbyists that differs from that of other individuals.

Many states, including Connecticut, ban lobbyists’ contributions to legislative and sometimes statewide candidates when the legislature is in session. With some exceptions, four states, Alaska, California, Kentucky, and South Carolina ban lobbyists contributions at any time. Table 2 shows the the states that ban lobbyists’ contributions.

At least five states, Kentucky, New Jersey, Ohio, South Carolina, and West Virginia, ban or restrict contractor contributions. These anti “pay to play” provisions are also gaining popularity in municipalities. Table 3 shows the states that ban contractor contributions.

TABLE 1: LIMITS ON INDIVIDUAL AND CORPORATE CONTRIBUTIONS TO CANDIDATES

States

Individuals to Candidates

Corporations to Candidates

Alabama

§ 17-22A-1 et seq.

Unlimited

$ 500/candidate/electiona,c,f

Alaska

§ 15. 13. 065 to . 080

$ 1,000/candidate/year

Aggregate amounts candidates may accept from non-residents:

$ 20,000/year/guber-

natorial candidate

$ 5,000/year/senate candidate

$ 3,000/year/house candidate

Prohibited

Arizonab

§ 16-901 et seq.

Limits for the 2005-2006 election cycle:

$ 760/statewide candidates

$ 296/legislative candidates

An individual may not contribute an aggregate amount in excess of $ 3,530 per calendar year to candidates and committees that give to candidates.

Amounts are per electiona

Prohibitedc

Arkansas

§ 7-6-201 et seq.

$ 1,000/candidate/per electiona

Same as individual limits

California

Gov. Code § 85300 et seq.

Limits effective Jan. 1, 2005:

$ 22,300/gubernatorial candidate

$ 5,600/statewide candidate $ 3,300/legislative candidate

Amounts are per electiona

Same as individual limits

-Continued-

States

Individuals to Candidates

Corporations to Candidates

Colorado

Constitution Art. XXVIII

$ 500/gubernatorial candidate

$ 500/other statewide candidate

$ 200/legislative candidate

Amounts per electiona

Prohibitedc

Connecticut

§ 9-333m to v

$ 2,500/gubernatorial candidate

$ 500/senate candidate

$ 250/house candidate

$ 15,000 aggregate/individual to all candidates and committees

All amounts are per electiona

Equal to twice the individual amounts per candidatec

$ 100,000 aggregate limit

All amounts per electiona

Delaware

§ 15-8010 to 8013

$ 1,200/statewide candidate

$ 600/other candidate

All amounts per election cycle

Same as individual limits

Florida

§ 106. 08

$ 500/candidate/per electiona

Same as individual limits

Georgia

§ 21-5-41 to 43

Statewide candidates:

$ 5,000/primary election

$ 3,000/primary run-off

$ 5,000/general election

$ 3,000/general run-off

Legislative candidates:

$ 2,000/primary election

$ 1,000/primary run-off

$ 2,000/general election

$ 1,000/general run-off

All amounts per election cycle

Same as individual limits

Hawaii

§ 11-200 to 207

$ 6,000/statewide candidate

$ 4,000/senate candidate

$ 2,000/house candidate

All amounts are per election cycle

Same as individual limits

Idaho

§ 67-6610A

$ 5,000/statewide candidate

$ 1,000/legislative candidate

Amounts are per electiona

Same as individual limits

Illinois

10 ILCS 5/9-1 et seq.

Unlimited

Unlimited

Indiana

§ 3-9-1-1 et seq.

Unlimited

$ 5,000/statewide candidate

$ 2,000/senate candidate

$ 2,000/house candidate

All amounts are per year

Iowa

§ 56. 2 et seq.

Unlimited

Prohibitedc

-Continued-

States

Individuals to Candidates

Corporations to Candidates

Kansas

§ 25-4153

$ 2,000/statewide candidate

$ 1,000/senate candidate

$ 500/house candidate

Amounts are per election cycle

Same as individual limits

Kentucky

§ 121. 150

$ 1,000/candidate/per electiona

Prohibited

Louisiana

§ 18: 1481 to 1532

$ 5,000/statewide candidate

$ 2,500/legislative candidate

Both amounts are per electiona

Same as individual limits

Maineb

Tit. 21-A, § 1001 to 1128

$ 500/gubernatorial candidate/per electiona

$ 250/other candidate/per electiona

Individuals limited to $ 25,000 aggregate contributions to all campaign finance entities per calendar year.

Same as individual limits

Maryland

Election Law § 13-226

$ 4,000/candidate

$ 10,000 aggregate to all candidates

Both amounts are per four-year election cycle

Same as individual limits

Massachusettsd

Ch. 55, §§ 7A to 8

$ 500/candidate

$ 12,500/individual aggregate limit on contributions to all candidates

Registered lobbyists may only contribute up to $ 200/candidate

All amounts are per calendar year

Prohibited

Michigan

§ 169. 252

$ 3,400/statewide candidate

$ 1,000/senate candidate

$ 500/house candidate

All amounts are per election cycle

Prohibitedc

Minnesota

§ 10A. 27

Election year limits:

$ 2,000/gubernatorial candidate

$ 500/legislative candidate

Non-election year limits:

$ 500/gubernatorial candidate

$ 100/legislative candidate

All amounts are per calendar year

Prohibited

-Continued-

States

Individuals to Candidates

Corporations to Candidates

Mississippi

§ 23-15-801 et seq.

§79-13-15

Unlimited

$ 1,000/candidate/calendar year

Missouri

§ 130. 032

$ 1,175/statewide candidate

$ 775/senate candidate

$ 300/house candidate

All amounts are per electiona

Same as individual limits

Montana

§ 13-37-216

$ 400/gubernatorial slate

$ 100/legislative candidate

Amounts are per electiona

Prohibitedc

Nebraska

§ 32-1608

Unlimited

Same as party contribution limitsc

Nevada

§ 294A. 100

$ 5,000/candidate/per electiona

Same as individual limits

New Hampshire

§ 664: 4

To candidates not agreeing to abide by spending limits:

$ 1,000/per electiona

To candidates agreeing to abide by spending limits:

$ 5,000/per electiona

Prohibited

New Jersey

§ 19: 44A-11. 3

$ 2,600/gubernatorial candidate

$ 2,200/legislative candidate

Both amounts are per electiona

Same as individual limits

New Mexico

§ 1-19-25 to 36

Unlimited

Unlimited

New York

Election Law, § 14-114

Gubernatorial Candidates:

Primary –

Product of number of enrolled voters in candidate’s party in state x $ . 005, but not less than $ 5,400 or more than $ 16,200

General –

$ 33,900

Legislative Candidates:

Primary –

$ 5,400/senate candidate

$ 3,400/house candidate

General –

$ 8,500/senate candidate

$ 3,400/house candidate

All amounts per calendar year

Maximum contributions by individual cannot exceed $ 150,000 in any one year

Same as individual limits, but limited to an aggregate of $ 5,000 per year in aggregate political contributions and expenditures

-Continued-

States

Individuals to Candidates

Corporations to Candidates

North Carolina

§ 163-278. 6 et seq.

$ 4,000/candidate/per electiona

Prohibitedc

North Dakota

§ 16. 1-08. 1

Unlimited

Prohibitedc

Ohio

§§ 3517. 102 and 3599. 03

$ 2,500/candidate/per electiona

Prohibitedc

Oklahoma

21 OS § 187. 1 et seq. and Ethics Commission Rules §257: 1-1-1 et seq. and §257: 10-1-2 et seq.

$ 5,000/candidate/campaign

*This limit applies to an entire family, defined as an individual, his spouse, and all children under 18 living in the same household.

Prohibitedc

Oregon

§ 260. 160 to 174

Unlimited

Unlimited

Pennsylvania

25 Pa. Stat. §§ 3241 to 3260a

Unlimited

Prohibitedc

Rhode Island

§ 17-25-10. 1

$ 1,000/candidate or

$ 2,000/candidate if candidate qualifies for public funding and agrees to abide by spending limits

Both amounts are per calendar year

Individuals limited to $ 10,000 in aggregate contributions to candidates, PACs and party committees per year

Prohibited

South Carolina

§§ 8-13-1314 to 1316

$ 3,500/statewide candidate

$ 1,000/legislative candidate

Both amounts are per electiona

Same as individual limits

South Dakota

§ 12-25-1. 1

$ 1,000/gubernatorial candidate

$ 250/legislative candidate

Both amounts are per calendar year

Prohibited

Tennessee

§ 2-10-302

$ 2,500/statewide candidate

$ 1,000/legislative candidate

Both amounts are per electiona

Prohibited

Texas

Election Code, § 253

Unlimited

Prohibitedc

Utah

§ 20A-11-101

Unlimited

Unlimited

Vermonte

17 VSA ch. 59

$ 400/gubernatorial candidate

$ 300/senate candidate

$ 200/house candidate

All amounts are per two-year election cycle

Same as individual limits

-Continued-

States

Individuals to Candidates

Corporations to Candidates

Virginia

§ 24. 2-900 et seq.

Unlimited

Unlimited

Washington

RCW § 42. 17. 610 et seq.

WAC § 390-05-400

$ 1,250/gubernatorial candidate

$ 625/legislative candidate

Both amounts are per electiona

During the 21 days before the general election, no candidate for legislative office may contribute to his or her own campaign more than $ 5,000 in the aggregate, and no candidate for state executive office may contribute to his or her own campaign more than $ 50,000 in the aggregate.

Prohibited for out-of-state corporations.

Same as individual limits for Washington corporations.

West Virginia

§ 3-8-8 to 12

$ 1,000/candidate/per electiona

Prohibitedc

Wisconsin

§ 11. 01 et seq.

$ 10,000/statewide candidate

$ 1,000/senate candidate

$ 500/house candidate

Above amounts are per election campaign

An individual may not contribute more than $ 10,000 in a calendar year to any combination of Wisconsin candidates or political committees.

Prohibited

Wyoming

§ 22-25-102

$ 1,000/candidate/per electiona

No individual may make more than $ 25,000 in total contributions during a two-year election cycle.

Prohibited

Source: National Conference of State Legislatures 2005 Report

(a) Primary and general are considered separate elections; stated amount may be contributed in each election.

(b) Candidates participating in “Clean Elections” public financing program may not accept contributions after qualifying for public funds. Limits listed are for candidates not participating in public financing program.

(c) Use of treasury funds, dues prohibited. May only make political contributions through a PAC, using funds from a separate, segregated account. Subject to the same limits as any other PAC.

(e) In Massachusetts, candidates who agree to participate in “Clean Elections” public financing may accept private contributions up to an aggregate total not exceeding $ 450,000 for gubernatorial candidates, $ 20,800 for senate candidates, and $ 6,900 for house candidates.

(f) Full public financing is available to qualifying candidates for governor and lieutenant governor. A candidate who wishes to receive public funding may not solicit or accept any private contributions except qualifying contributions.

(g) Any public utility regulated by the Public Service Commission is prohibited from making political contributions.

TABLE 2: STATES THAT BAN LOBBYIST CONTRIBUTIONS TO CANDIDATES

States

Prohibition

Alaska

AS § 15. 13. 074(g)

A registered lobbyist cannot contribute to a legislative candidate while registered and for up to one year thereafter, except he may contribute to the legislative candidate from his district.

California

Government Code § 85702

A lobbyist cannot contribute to an elected state officer or candidate for elected state office if the lobbyist is registered to lobby the candidate’s or officeholder’s agency.

Kentucky

KRS §§ 6. 811 and 6. 611

A legislative agent cannot make a campaign contribution to a legislator, a candidate, or his campaign committee. “Legislative agents” are people whose official responsibilities include lobbying or who lobby as a legislative liaison for an association, coalition, or public interest entity formed to promote or otherwise influence legislation.

South Carolina

SC Code § 2-17-80

A lobbyist cannot offer, solicit, facilitate, or provide contributions on behalf of a legislator, any statewide constitutional officer, or any state agency public official or employee.

TABLE 3: BANS AND RESTRICTIONS ON CONTRACTOR CONTRIBUTIONS BY STATE

States

Prohibition

Kentucky

§ 121. 056

No person or any entity in which they have a substantial interest can be awarded a state contract if (1) the person contributes more than the maximum legal contribution in any one election to candidates for Governor and Lieutenant Governor and (2) the candidates win the election. The ban applies during the term of office following the campaign in which the contributions were made. The ban does not apply to contracts awarded by competitive bidding if the person or entity has the lowest and best bid.

A person has a “substantial interest” if he, a member of his immediate family, or both owns or controls 10% or more of an entity. “Immediate family” means a person’s spouse, parent, or child.

-Continued-

States

Prohibition

New Jersey

Executive Orders 134 and 18

Prohibits New Jersey state departments, agencies, and authorities from entering into a contract that exceeds $ 17,500 with an individual or entity that made a political contribution to the governor’s candidate committee or election fund or to any state or county political party committee. The ban does not apply to transportation contracts funded, in whole or in part, by the federal Highway Administration.

Ohio

§ 3517. 13

No state or municipal agency or department can award a contract valued at over $ 500, other than by competitive bidding, to an individual or business if the individual, his spouse, or any business partner, shareholder, administrator, executor, or trustee or his spouse made a contribution of over $ 1,000, in the aggregate, to the awarding authority or his campaign committee within the past two calendar years.

The owner of more than 20% of a corporation or business trust cannot be awarded a state or municipal contract valued at over $ 500 if he or his spouse made an individual contribution of the same amount during the same period.

The prohibitions do not apply to contracts awarded collectively by a number of statutorily named agencies.

South Carolina

§ 8-13-1342

No person awarded a contract with the state, a county, a municipality, or a political subdivision thereof, other than contracts awarded through competitive bidding practices, may make a contribution after the awarding of the contract or invest in a financial venture in which a public official has an interest if that official was in a position to act on the contract’s award. No public official or public employee may solicit campaign contributions or investments in exchange for the prior award of a contract or the promise of a contract with the state, a county, a municipality, or a political subdivision.

West Virginia

§ 3-8-12

Generally prohibits anyone who bids on or has a public contract at the state or local level from contributing to any political party, committee, or candidate for public office or to anyone for political purposes or use. The ban applies during the period of contract negotiation and performance.

SN-E: ts