Chapter 5: Contribution Restrictions (What You Cannot Accept)

Official Source: Chapter 5 - Contribution Restrictions

Introduction

While Chapter 4 defined what a contribution is, this chapter explains what contributions are illegal. Accepting the wrong kind of money—even accidentally—can lead to fines, returned funds, and legal headaches.

The golden rule of this chapter: Know exactly who gave you the money.

Part A: The "True Source" Rule (Money Laundering)

It is a serious violation of the Political Reform Act to hide the true identity of a donor. In legal terms, this is called "campaign money laundering."

What it looks like

You might think of money laundering as a complex crime, but in campaigns, it often looks like this:

• Reimbursement: An employer wants to donate to you but has hit their contribution limit. They give bonuses to five employees and ask them to donate to you.
• "Straw Donors": A wealthy individual gives money to their friend and tells the friend to write a check to your campaign.

Your Responsibility: If a donor's behavior raises red flags (e.g., a receptionist writes a $5,000 check, or you get five checks from employees of the same company on the same day), you have a "duty to inquire." You must ask if they are the true source of the funds.

• Consequence: If you accept laundered funds, you must pay the entire amount to the Secretary of State for the General Fund. You do not get to keep it.

Part B: Cash & Anonymous Contributions

Paper money is hard to track, so the state hates it.

The $100 Cash Limit

• The Rule: You cannot accept cash contributions of $100 or more.
• Includes: Cash bills and coins.
• Trigger Warning: This applies to the total from a single source. A donor cannot give you $50 cash today and $50 cash tomorrow.
• The Fix: If you accidentally accept $100+ in cash, you must refund it within 72 hours of receipt.
  • Emergency Rule: If you receive $1,000+ in cash during the last 90 days of an election, you must refund it within 48 hours.

Anonymous Donors

• The Rule: You cannot accept $100 or more from an anonymous source.
• The Fix: If you receive an anonymous $100 bill in a donation jar, you cannot keep it. You must send it to the Secretary of State for the General Fund.

Money Orders & Cashier's Checks

• The Rule: You cannot accept contributions of $100 or more via money order or cashier's check.
• Requirement: Any contribution of $100+ must be by a written instrument (personal check, credit card, debit card, wire transfer) that contains the name of the donor.

Part C: Lobbyist Restrictions

State lobbyists face strict rules because of their influence in Sacramento.

The Ban

A state lobbyist cannot donate to you if they are registered to lobby the office you hold or are seeking.

• Example: A lobbyist registered to lobby the State Legislature cannot donate to a State Senate candidate.
• Scope: They also cannot donate to your local committee if you control one.

No Home Fundraisers

A lobbyist (or their cohabitant) cannot host a fundraiser for you in their home or office if they are registered to lobby your agency.

• Note: A lobbying firm can host an event if the cost is $500 or less (see Chapter 4), but they cannot rent out their office to you as a venue.

Part D: Pay-to-Play (Section 84308)

Crucial for Incumbents and Appointed Officials This law, known as Section 84308, is designed to prevent "pay-to-play" politics. It applies to proceedings involving licenses, permits, or other entitlements (e.g., a developer asking for a building permit).

Who it applies to:

• Local elected officers (City Council, Supervisors).
• Appointed Commissioners (Planning Commission, LAFCO).
• Heads of state/local agencies.
• Exempt: Judges, Legislature, Constitutional Officers.

The Restriction: If a proceeding involving a license/permit is pending before you (or was decided in the last 12 months):

1. You cannot accept a contribution of more than $250 from a party or participant in that proceeding.
2. You must disclose any such contribution you received in the prior 12 months.
3. You must disqualify (recuse) yourself from voting on the matter if you received >$250 from a party involved.

The Cure: If you accidentally accept a contribution >$250 from someone with a permit pending before you, you can "cure" the violation (and still vote) if you return the money (or the portion over $250) within 30 days of learning about it.

Part E: Other Prohibitions

Foreign Nationals

You cannot accept money from foreign nationals.

• Source: Federal Law (52 USCS 30121).
• Definition: Includes foreign governments, foreign political parties, and individuals who are not US citizens or permanent residents (green card holders).

State Buildings

You cannot physically receive or deliver a contribution inside the State Capitol or any state office building.

• Meaning: Do not accept a check while standing in a hallway in the Capitol. Do not have mail sent to your government office.
• Exception: This does not apply to legislative district offices, only state buildings where the state pays the majority of the rent.

Public Funds

You generally cannot use public money to run for office.

• Example: You cannot use your official government staff or office equipment to design campaign mailers.

Action Plan: Screening Your Money

FAQ: Common Questions

Q: Can I take a $50 bill from a donor? A: Yes. Cash under $100 is legal. Just record their name and address if it brings their total to $25+.

Q: A business owner wants to give me $100 cash for a ticket to my fundraiser. Is that okay? A: No. The limit is under $100. They cannot give you $100 in cash. They must write a check or use a card.

Q: I am a City Council member running for State Assembly. Does the "Pay-to-Play" rule apply to me? A: Yes. If you vote on licenses or permits in your role as City Council member, you cannot accept >$250 from the applicants, even for your Assembly campaign.

Q: Can a federal Green Card holder donate to me? A: Yes. Permanent residents are allowed to donate.