Limits on Out-of-State Campaign Contributions

Out-of-state or out-of-district campaign contributions corrupt the political process because an elected official may become more beholden to these contributors than to the community she represents. Alaska and Oregon have adopted limits on out-of-state or out-of-district contributors. Both have been overruled by federal courts as violations of the First Amendment. While the Oregon law has been repealed, the Alaska law has been suspended and is on appeal in the Alaska Supreme Court.

Because these laws so well embody the principles of localism and republicanism, the New Rules Project offers them here as models that should be reinstated.

RULES:

• Alaska Cap on Out-of-state Campaign Contributions
  In 1996 the Alaska Legislature adopted a campaign finance reform law that banned contributions from business and unions and capped campaign contributions at $500 per individual. The new law also put a cap on the contributions that a candidate for governor, lieutenant governor or state legislator could receive from individuals not living in Alaska. In 1999, the state Supreme Court upheld most of the provisions from the 1996 law. More...
  
  
• Oregon's Ballot Measure 6 (1994)
  Oregon's 1994 Ballot Measure 6 amended the state constitution to allow candidates to "use or direct only contributions which originate from individuals who at the time of their donation were residents of the electoral district of the public office sought by the candidate." It imposed a 10 percent cap on the total amount of money a candidate could accept from contributors residing outside the district. More...