Contributions to and from PACS have been subject to numerous changes in the law over the past decade. The most significant change to affect contributions to and from PACs was Proposition 208, which limited contributions by PACs to candidates for office quite drastically. Since then, Proposition 34 was passed by the voters, taking effect January 1, 2001. The significant portions of Proposition 208 were repealed with the passage of Proposition 34. Below is a summary of contributions to and from PACs which are authorized currently under the law.

Contributions to Political Action Committees

Contributions to PACs from association members may be made in one of two ways, by either earmarking a certain amount of member's dues to be put into the political action committee fund (requiring member approval and notification) (Keep in mind under San Jose Teacher's Association v. Superior Court (38 Cal.3d 839) association members have the right to complain about where their dues are being sent for political activities and demand refund on those amounts.) The second and more preferable manner for collecting funds for PACs is setting up voluntary contributions by association members from association dues and having those deducted through payroll.

There is currently no limit on the amounts given to PACs involved in both local and statewide elections. However, under Proposition 34, a PAC may not accept any contribution totaling more than $5,600.00 per calendar year from a single source "for the purpose of making contributions to candidates for elective state office"

Contributions to Local Candidates by PAC. Proposition 34 only limits contributions in state elections. As such, Contributions by political action committees to local candidates are almost unlimited. As in contributions to PACs no contributions may be made by PACs of $100 or more in cash. (Govt. Code 84300(b)).

Local Rules. It is normal for counties and cities to pass ordinances and resolutions limiting contributions to and from political action committees. Please consult legal counsel or these ordinances prior to managing a PAC.

Contributions by PACs to State Candidates.

Reporting Requirements:

Maintaining a PAC requires meticulous record keeping and timely reports to be filed with the appropriate governmental agencies.  Your association’s legal advisors should be able to provide you with guidance in this area.