Background: In 1992 Initiative 134 was passed, establishing campaign contribution limits in elections for statewide and legislative office. The stated purposes of the initiative were to: (1) give individuals and interest groups equal opportunities to influence elective and governmental processes; (2) reduce the influence of large organizational contributors; and (3) restore public trust in governmental institutions and the electoral process.

The term contribution is broadly defined in statute, and includes any payment, loan, gift, deposit, forgiveness of debt, donation, advance, pledge, or transfer of funds. Further examples of contributions include the financing of an electioneering communication and making an expenditure in cooperation with or at the direction of a person designated to direct expenditures to the candidate or committee. Ordinary home hospitality, contributions which are returned within five business days, non-coordinated news coverage, and internal political communications are not considered contributions. Customary volunteer services, display of messages on a person's property, legal or accounting services if provided by a regular employee, and the performance of ministerial functions are also not considered contributions to a candidate or committee.

Campaign contribution limits are adjusted for inflation by the Public Disclosure Commission by rule every even-numbered calendar year. Certain contributions are exempt from any limits, including contributions for the purpose of voter registration, get-out-the vote campaigns, or expenditures by a political committee for its own internal organization or fundraising without direct association with individual candidates. Any expenditure or contribution for independent expenditure or electioneering communication made by a political party for a candidate is considered to be a contribution to that candidate. A contribution for independent expenditures or electioneering communications is exempt from contribution limits.