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BACKGROUND Campaign contribution limits have historically been permitted due to concerns that donors may gain unfair access to, or influence over, officials who are subsequently elected. Limits on contributions and expenditures also must be balanced with First Amendment considerations for freedom of speech and association. Campaign finance laws generally regulate campaign contributions by establishing limits, source restrictions, and disclosure requirements. In 1974, California voters adopted the Political Reform Act (Act) to regulate: campaign contributions and expenditures; lobbying; and conflicts of interest.' The Act also established the California Fair Political Practices Commission (FPPC), which adopts regulations to implement and enforce the Act. These laws have evolved over time both by the state legislature and with California voters adopting: Props. 68 (contribution limits) and 73 (contribution limit and inter-candidate transfer ban) in 1988, Prop. 112 (gift and travel payment limits) in 1990; Prop. 208 in 1997 —then repealed by Prop. 34 (contribution limits, disclosure expansion, lobbyist contribution limits, and allowed independent expenditure committees) in 2000. DISCUSSION Contribution Limits. Most recently, the state legislature adopted AB 571 (2019 Mullin) — Political Reform Act and Local Contribution Limits - that caps a person's contributions to a candidate for county or city elective office at an adjusted amount established by the FPPC2. The FPPC says that for 2021-2022, the maximum amount for an individual contribution to a candidate for city or county office will be $4,900 per election. AB 571 allows a city to adopt its own contribution limits, including amounts higher or lower than the state's $4,900 cap per person. In reviewing campaign finance disclosure statements from the 2020 election, of the committees3 required to file pre-election disclosure statements the largest individual contributions did not exceed the $4,900 cap. Options. The Council may consider campaign contribution limits which are more or less restrictive than the state's $4,900 limit per contributor to a candidate for city office.4 As no candidate received a contribution which exceeded the state's $4,900 limit, it is not recommended that the Council consider a limit higher than AB 571. ' Under the Act, a conflict of interest is defined as a financial interest which, at set monetary thresholds, prohibits an elected or appointed official, or certain government employees, from making, participating, or influencing a decision in their official capacity. See Cal. Election Code§85301(d) and Cal. Govt. Code §83124. For candidates who do not plan to raise or spend $2,000 or more in a calendar year, including the candidate's personal funds, these disclosures are not required. 'Contribution limits by individuals to candidates have been upheld due to concerns about corruption. Courts have not allowed campaign contribution limits to committees supporting or opposing local ballot measures, finding no important governmental interest in regulating such contributions. Page 2 of 4