Government Code section 84308 (Section 84308) is a component of the California Political Reform Act that contains “pay-to-play” restrictions aimed at ensuring that state and local government officials are not biased by campaign contributions when they make decisions on government contracts or other public entitlements that may benefit campaign donors.

Prior to 2023, Section 84308 did not apply to elected officials, including school and community college districts. However, starting in 2023, all elected board members, board member candidates, and chief executives of local educational agencies became subject to these pay-to-play restrictions. With measure and candidate election season upon us, it is critical that school and community college district officers understand the limits on—and repercussions of—candidate and measure campaign fundraising that includes soliciting or accepting contributions from private companies that do business with the agency or may do so in the future. These prohibitions are enforced by the Fair Political Practices Commission (FPPC), which has authority to investigate violations and impose fines.

Section 84308 contains three key prohibitions:

1. It prohibits agency “officers” from accepting, soliciting, or directing a contribution of $500 or more to a campaign (including a ballot measure campaign) from a person or entity that is before the board seeking a “license, permit, or other entitlement for use” (hereinafter, “entitlement for use decision”) from the district and for 12 months after the decision on that entitlement for use is made;
2. It prohibits agency officials from participating in agency entitlement for use decisions that affect a campaign donor, if the official has knowingly received campaign contributions from that campaign donor within the 12 months preceding the entitlement for use decision date, and the law further requires an official to disclose the contribution on the public record; and
3. It requires donors that make campaign contributions to or at the request of officers to disclose those contributions on the public record at the time an entitlement for use decision is made by an agency, and it prohibits that donor from making a contribution of more than $500 to an agency officer during the entitlement for use decision period.

In practical terms, and as explained in greater detail below, this law generally means that:

School and College Board Trustees may not

• Participate in any entitlement for use proceeding pending before their agency involving an individual or entity who, within the past 12 months, contributed more than $500 to their candidate campaign.
• Accept campaign contributions of more than $500 from an individual or entity involved in an entitlement for use proceeding during, or for 12 months following, the agency proceeding.
• Solicit contributions of more than $500 to any other campaign committee, including a ballot measure committee, from an individual or entity involved in an entitlement for use proceeding during, or for 12 months following, the proceeding.

Chief Executives (i.e., District Superintendents, College Presidents/Chancellors) may not

• Solicit contributions of more than $500 for any candidate campaign committee or ballot measure committee from an individual or entity involved in an entitlement for use proceeding during, or for 12 months following, the agency proceeding. This means that a chief executive may not solicit ballot measure contributions in excess of $500 from any company under contract with the agency and for 12 months following the contract approval, unless the contract is subject to one of the listed exceptions.

Contracting Parties may not

• Contribute more than $500 to any candidate or campaign committee while the entitlement for use proceeding is pending and for 12 months thereafter. School and community college district vendors and contracting parties that have provided more than $500 in campaign contributions to a candidate or measure campaign committee at the request of an officer in the 12 months prior to contract approval must publicly disclose that contribution on the public record during the contract approval proceeding. Some kinds of contracts are exempt from these rules.

The following provides a more detailed overview of the impact of Section 84308.

1. To Which Officials does Section 84308 Apply?

Section 84308 applies only to conduct of an “officer” of an agency, which includes any elected or appointed officer of an agency, any alternate to an elected or appointed officer of any agency, and any candidate for elective office in an agency. (Gov. Code, § 84308(a)(4).) FPPC regulations and guidance further clarify that to be considered an “officer,” a person must meet two criteria:

• They must have the ability to make, participate in making, or use their official position to influence an entitlement for use decision before the agency or exercise authority or budgetary control over the agency; and
• They must serve in an elected position or serve as the chief executive of an agency.

Under the applicable definitions, school and college board trustees as well as superintendents (for school districts) and chancellors/presidents (for community college districts) are considered officers subject to the Section 84308 rules. Board member candidates are also considered officers, but enforcement of the rules only applies once a candidate assumes office.

2. What is a “proceeding involving a license, permit, or other entitlement for use”?

The prohibitions of Section 84308 apply to campaign contributions made to campaigns by donors/contributors that have a financial interest in a proceeding involving a “license, permit, or other entitlement for use” pending before the agency. The term is broadly defined. Examples of a license, permit, or other entitlement for use identified by the FPPC that would be common for school and community college districts include contract approvals or actions (unless an exception applies), charter school petitions, and event permits. (See Fair Political Practices Commission, Officers and Section 84308 (2026).)

The following types of contracts are not considered entitlement for use decisions:

• • Competitively bid contracts that are required by law to be awarded pursuant to a competitive process
  • Labor contracts and personal employment contracts
  • Contracts valued under $50,000
  • Contracts that lack financial compensation for any party
  • Contracts between two or more agencies
  • Actions taken that are considered only a periodic review or renewal of a competitively bid contract where there are no material modifications to the contract, as further defined.

3. What Campaign Contributions Trigger Section 84308?

Only campaign contributions fitting the following criteria invoke the restrictions of Section 84308:

• The contribution amount exceeds $500;
• The contribution is:
  • • • Made 12 months before, during, or 12 months after an agency proceeding on an entitlement for use;
      • Made by individual or entity involved in the proceeding; and
      • Made to the campaign committee of an officer or to another candidate or a ballot measure committee at the solicitation of one of those officers.

4. What Requirements Must an Officer Observe with regard to Campaign Contributions?

A. Prohibition: Accepting, Soliciting, or Directing Contributions Exceeding $500 During 12-Month Period While the Proceeding is Pending and 12 Months After

An officer may not accept, solicit, or direct campaign contributions of more than $500 from an individual or entity involved in an entitlement for use proceeding during the pendency of the proceeding or for the 12 months following. This prohibition applies in two ways. First, it prevents an officer from accepting contributions to their own campaign committee while the proceeding is pending and for 12 months after. Second, it prohibits an officer from soliciting or directing contributions of more than $500 to another campaign committee (including a ballot measure committee) during this time period. Related, the law also prohibits campaign donors from making such contributions.

Example: School district approves legal services agreement with a law firm in January and places a parcel tax ballot measure on the November ballot, when two board members are also up for election. The board members are prohibited from accepting contributions of more than $500 from the law firm because 12 months have not passed since the contract was approved, and no contract exception applies to the legal services agreement. Additionally, no board member or the superintendent (even in their individual capacity) may solicit a contribution of more than $500 from the law firm to the campaign committee formed to support the parcel tax ballot measure.

B. Prohibition and Disclosure: Participating in an Entitlement for Use Proceeding

An officer may not participate in an entitlement for use proceeding if they accepted a campaign contribution of more than $500 from an individual or entity involved in the proceeding in the prior 12 months. The officer may not participate in the entitlement for use decision, and they (and the contributor) must publicly disclose the contribution as part of the proceeding. However, an officer who previously accepted such a contribution may participate in the proceeding if they refund the amount of the contribution in excess of $500 within 30 days of learning that the contributor is involved in the decision.

Example: An instructional consultant contributes $600 to board member Lee’s re-election campaign committee in October. The board will consider a contract with the same consultant in March of the following year. Board member Lee will need to recuse themself from any involvement in consideration of the contract, unless they refund at least $100 of the contribution within 30 days of learning of the potential contract coming to the board.

 The laws in this area are complex and nuanced, and even perceived violations may create significant negative publicity for any campaign. Districts should work with counsel to determine how they may apply to proceedings in which they are involved. Please contact a DWK attorney in our Board Ethics, Transparency, and Accountability (BETA) Group for more information on how these rules may apply to your district officials, campaigns, and measures.