Recent Developments in State Campaign Finance, Lobbying and Gift Law

Now that the new year is well underway, states have begun releasing updated political contribution limits, gift limits and lobbying registration thresholds. Similar to the Federal Election Commission’s recent publication of significant increases to federal political contribution limits, states are also announcing larger increases in their indexed limits as a result of historically high inflation. As the 2024 election cycle begins in earnest, prospective contributors should take particular note of new contribution limits in several jurisdictions.

Alabama

The Alabama Ethics Commission increased the de minimis value of items that lobbyists and lobbyist employers may provide public officials, public employees or candidates per occasion ($32) and in the aggregate per calendar year ($64).

Arizona

The Arizona Secretary of State’s office also increased contribution limits for state and local candidates. The new contribution limits to statewide and legislative candidate committees per cycle are applicable to individuals and political committees (PACs) without “Mega PAC” status ($5,400) and PACs with “Mega PAC” status ($10,800). The increased limits also impact contributions to local candidates from individuals and PACs without “Mega PAC” status ($6,650) and “Mega PACs” ($13,300). A PAC receives “Mega PAC” status once it receives contributions of $10 or more from at least 500 individuals in a four-year period.

Illinois

The Illinois State Board of Elections increased state contribution limits by nearly 15 percent. The new limits for this election cycle are as follows:

• Corporate contributions to candidate committees ($13,700).
• Corporate contributions to PACs ($27,400).
• Corporate contributions to political party committees ($27,400).
• Individual contributions to candidate committees ($6,900).
• Individual contributions to PACs ($13,700).
• Individual contributions to political party committees ($13,700).
• PAC contributions to all committees ($68,500).

Michigan

Michigan released updated lobbying registration and reporting thresholds as well as gift limits. Lobbying registration is now required if an individual receives more than $725 in compensation or reimbursement for efforts to influence legislative or administrative action in Michigan during a 12-month period. Additionally, lobbying registration is now required if an employer expends more than $2,900 for all lobbying activity or expends more than $725 for lobbying a single public official in Michigan during a 12-month period.

Michigan also announced updated monthly food and beverage expenditure limits ($72), annual food and beverage expenditure limits ($450) and the general gift threshold ($72).

Additionally, the Office of the Secretary of State published increased contribution limits for individuals and PACs contributing to candidates for state senate ($2,450), state house ($1,225) and governor or other statewide offices ($8,325) per election cycle. Contribution limits to local candidates have also been adjusted according to district population.

New York

New York is an outlier among states that adjusted political contribution limits for the 2023-2024 cycle. Effective immediately following the 2022 election, contribution limits for certain state candidates actually decreased as the state rolled out a new public financing system for certain state candidates. Individual contributions to participating statewide candidates (governor, lieutenant governor, attorney general and comptroller) will be matched at a $6-1 ratio for the first $250 contributed. Individual contributions of up to $250 to participating state senate and assembly candidates will also be matched according to a tiered formula starting at a $12-$1 match and decreasing to an $8-$1 match. PAC contributions to state candidates are not eligible for public matching funds.

Under the new state contribution limits, individuals and PACs may contribute up to $9,000 per election to statewide candidates, $5,000 per election to state senate candidates and $3,000 per election to state assembly candidates, regardless of whether those candidates participate in the public financing system.

North Carolina

In North Carolina, the per election limits on contributions to candidates and PACs from individuals and other PACs increased to $6,400.

South Dakota

South Dakota’s annual limit for gifts from lobbyists and lobbyist employers increased by 7 percent to $115.47.

Tennessee

Tennessee’s Bureau of Ethics and Campaign Finance (BECF) released their increased contribution limits for the 2023-2024 election cycle. The new limits impact the amount that individuals may contribute to candidates for statewide office ($4,900) and candidates for the general assembly and other state and local offices ($1,800). The amounts that PACs may contribute per election cycle also increased. PACs may now contribute more to candidates for statewide office and the state house ($14,400), candidates for state senate ($28,800) and candidates for other state and local offices ($9,400).

The BECF also released new limits on the amount lobbyists may expend per event on public officials ($73) and the amount lobbyist employers may expend annually on public officials ($147).

Texas

The Texas Ethics Commission released annual increases to the state’s lobbying registration thresholds. Lobbying registration is now required if an individual makes expenditures of more than $880 in a calendar quarter in furtherance of lobbying. Registration is also required if an individual is compensated more than $1,760 in a calendar quarter and spends more than 40 hours in a calendar quarter on lobbying activities in Texas.