Oregon may soon have campaign contribution limits for the first time in state history, thanks to a compromise between labor and business groups. The proposal, which was introduced as an amendment to House Bill 4024, would cap the amount of money that individuals, corporations, unions, and political committees can donate to candidates and ballot measures, starting from 2026.
The compromise, which was crafted by the state’s largest labor unions and business coalitions, aims to balance the interests of different stakeholders and avoid a potential ballot measure that would impose much stricter limits. The proposal would set the following limits for each election cycle:
- $2,900 for statewide candidates, such as governor, attorney general, and secretary of state.
- $1,500 for legislative candidates, such as state senators and representatives.
- $500 for local candidates, such as county commissioners and city councilors.
- $10,000 for political action committees (PACs), such as those that support or oppose candidates or ballot measures.
- $50,000 for political party committees, such as those that represent the Democratic or Republican parties.
- $100,000 for small donor committees, such as those that receive contributions of $250 or less from individuals.
The proposal would also require more transparency and disclosure of campaign spending, such as:
- Reporting the top five contributors of any advertisement that supports or opposes a candidate or a ballot measure.
- Reporting the sources of any contribution that exceeds $10,000 in a single year.
- Reporting the sources of any independent expenditure that exceeds $1,000 in a single year.
The proposal would also create a new commission to oversee and enforce the campaign finance laws, and to impose civil penalties for violations.
The reasons for the compromise
The compromise was motivated by the desire to avoid a ballot measure that would set much lower limits and ban corporate contributions altogether. The ballot measure, known as Initiative Petition 9, is being pushed by good government groups, such as Honest Elections Oregon and Common Cause Oregon, who argue that the current system allows wealthy donors and special interests to have too much influence over the political process.
The ballot measure would set the following limits for each election cycle:
- $500 for statewide candidates, legislative candidates, and local candidates.
- $500 for PACs, political party committees, and small donor committees.
- $0 for corporations, unions, and other entities.
The ballot measure would also require more transparency and disclosure of campaign spending, such as:
- Reporting the top three contributors of any advertisement that supports or opposes a candidate or a ballot measure.
- Reporting the sources of any contribution that exceeds $1,000 in a single year.
- Reporting the sources of any independent expenditure that exceeds $500 in a single year.
The ballot measure would also create a new commission to oversee and enforce the campaign finance laws, and to impose civil and criminal penalties for violations.
The supporters of the ballot measure say that the compromise is too weak and contains too many loopholes, and that they will continue to collect signatures to qualify for the November ballot. They need to gather at least 149,360 valid signatures by July 2, 2024.
The supporters of the compromise say that the ballot measure is too extreme and would have unintended consequences, such as:
- Driving more money to independent expenditures, which are harder to track and regulate.
- Reducing the diversity and competitiveness of candidates, especially those from underrepresented groups and rural areas.
- Challenging the constitutional rights of free speech and association.
The supporters of the compromise say that their proposal is more realistic and balanced, and that it has a better chance of passing the Legislature and surviving legal challenges.
The prospects of the compromise
The compromise, which was sponsored by House Majority Leader Julie Fahey, D-Eugene, has been scheduled for a hearing in the House Rules Committee on Friday, February 23, 2024. The committee, which is chaired by Fahey, has the power to send the bill to the House floor for a vote.
The compromise has received mixed reactions from lawmakers, who have until March 10, 2024, to wrap up their session. Some lawmakers have expressed support for the compromise, saying that it is a step in the right direction and that it reflects the will of the voters, who approved a constitutional amendment in 2020 that authorized the Legislature to enact campaign contribution limits. Some lawmakers have expressed opposition to the compromise, saying that it is either too lenient or too restrictive, and that it would favor certain groups over others. Some lawmakers have expressed uncertainty about the compromise, saying that they need more time and information to evaluate its merits and impacts.
The compromise also faces potential legal hurdles, as Oregon has a history of striking down campaign finance laws on constitutional grounds. The Oregon Supreme Court has ruled in the past that campaign contributions are a form of free speech, and that any limits must be narrowly tailored to serve a compelling state interest. The court has also ruled that any limits must apply equally to all sources and recipients of campaign money, and that any exceptions or exemptions must be justified by a clear and convincing evidence.
The compromise, if passed by the Legislature and signed by the governor, would likely be challenged in court by either the supporters or the opponents of the ballot measure, or by other interested parties. The outcome of such a challenge would depend on the interpretation and application of the 2020 constitutional amendment, which has not been tested in court yet.
