Comprehensive Public Funding - Frequently Asked Questions
1. Must a candidate electronically file all 3 Seed Money Reports listed in Section 10?
Response: You do not have to file Seed Money Report #3 if (1) there is a zero balance for Seed Money Report #2; and (2) You don’t receive or expend any additional seed money.
2. If comprehensive public funding runs out ($300,000 provided to qualified candidates), how much in private contributions may a candidate raise?
Response: Section 12(b) provides that a certified candidate may accept contributions up to the base amount the certified candidate would have been eligible to receive, subject to contribution limitations in Hawaii Revised Statutes section 11-204 (up to $2,000 from any person in a two-year election period).
3. Are loan repayments considered as “expenditures” when calculating base amounts?
Response: For purposes of calculating base amounts, expenditures do not include loan repayments.
4. May a certified candidate, in pursuit of his election, pass out bananas on a street corner?
Response: Yes, a certified candidate may pass out a banana to a passer-by if the candidate purchases the bananas with campaign funds. The candidate cannot donate the bananas to his campaign and he cannot accept a non-monetary contribution of bananas.
5. May a certified candidate use public funds to pay himself for use of part of his home for a headquarters?
Response: Yes, expenses directly related to the candidate’s campaign are permissible pursuant to Section 15(a). There should be a clearly segregated portion of the personal residence for campaign purposes. The owner of the property may be paid a fair rental value for the apportioned actual use of personal residence.
6. May a certified candidate use surplus funds from a previous election to pay fines or penalties?
Response: No, surplus funds are frozen pursuant to Section 6 of Act 244.
7. May a candidate make a qualifying contribution to the candidate’s own campaign?
Response: No, a candidate’s personal funds may be used for seed money pursuant to Section 5 of Act 244, but there is no provision that permits a candidate to provide personal funds to make a qualifying contribution.
8. May an individual volunteer to play music at a campaign event?
Response: Yes, volunteer services are not contributions.
9. May a certified candidate use the candidate’s personal computer and printer to make campaign flyers and brochures?
Response: Yes, use by the candidate of the candidate’s computer and printer are not contributions. However, the candidate must use campaign funds to pay for paper and ink. The candidate may not contribute paper and ink to the candidate’s campaign.
10. May a certified candidate arrange to speak at a school fundraiser (like a barbecue) in which people buy their meal from the school fundraiser?
Response: Yes, if the government facility permits use by nongovernmental organizations for a fee or with reservations and the governmental facility’s use regulations do not prohibit political activities on the premises. However, the candidate cannot use comprehensive public funds to donate to the school fundraiser.
11. Are candidates eligible for a reduced filing fee?
Response: No, there is no provision in Act 244 or HRS section 12-6 for a reduced filing fee.
12. May a candidate pay the $250 filing fee with personal funds, seed money, or comprehensive public funds?
Response: REVISED. Due to the adoption of new Hawaii Administrative Rules, Chapter 3-162 on March 8, 2010, candidates may now use public funds to pay their filing fee. The candidate can pay the $250 filing fee with personal funds or comprehensive public funds, but not seed money. Seed money must be used solely to determine a candidate’s viability. A candidate has already made a decision to run by the time nomination papers are filed.
13. Who are the checks and money orders for qualifying contributions made payable to?
Response: Hawaii Election Campaign Fund.
14a. May a candidate accept a $5 contribution that is a business check?
Response: No. It must be a personal check.
14b. Can a candidate or any another person who is collecting $5 qualifying contributions from registered voters and soliciting signatures for the candidate’s Application for Certification purchase money orders and provide the money orders at the cost of the money orders (e.g., $5 face value and $.50 fee) to registered voters to be used as qualifying contributions?
Response: No. Each registered voter who signs an Application for Certification must purchase their own $5 money order. Act 244 requires that the $5 qualifying contribution be made in the “form of a check or money order.” This language was specifically added by the Legislature to prevent any cash contributions to a candidate. If a voter paid cash for a pre-purchased money order that would be equivalent to a cash contribution. Moreover, pre-purchased money orders could lead to abuses (e.g., a candidate could purchase two-hundred $5 money orders and voters could sign an application without making a $5 qualifying contribution). Finally, there would be no audit trail.
14c. If several registered voters (e.g. in one household) are signing the candidate’s Application for Certification, can one of the voters purchase money orders on behalf of the other voters to be used as qualifying contributions by the other voters?
Response: No. Each registered voter who signs an Application for Certification must purchase their own $5 money order.
14d. What is a money order for purposes of Act 244?
Response: A money order is a payment order for a pre-specified amount of money ($5 for purposes of Act 244). A money order typically consists of two portions: the negotiable check for remittance to the candidate; and a receipt or stub that the registered voter who purchases the money order retains. The provider of the money order also keeps a record. The negotiable instrument must say “money order” to comply with Act 244. For instance, a “Moneygram Money Order” may be accepted as a qualifying contribution, but not a “Moneygram.” While the U.S. Postal Service originally issued money orders, money orders may now also be purchased from other sellers. (e.g., 7-11, Wal-Mart).
15. Who gets paid their base amount first in the following scenario?
Response: If Candidate A’s Application for Certification for Comprehensive Public Funding was verified by the County Clerk and was sent to the Campaign Spending Commission who completed review, and Candidate A’s nomination papers are filed first on February 1, 2012, Candidate A will be certified and receive 30% of base amount because Candidate A has no opponent at that time.
If Candidate B, in a different council district from Candidate A, is certified thereafter on February 6, 2012 at 10:00 a.m., Candidate B is paid 30% of base amount.
If Candidate C’s Application for Certification for Comprehensive Public Funding was verified by the County Clerk, Candidate C files nomination papers, and Candidate C is certified by the Campaign Spending Commission on February 6, 2012 at 12:00 p.m., and Candidate C is an opponent of Candidate A, Candidate A will be paid the remaining 70% of base amount. Then Candidate C will be paid 100% base amount if funds are available.
16(a). Prior to certification, may a candidate spend surplus funds?
Response: Yes, a candidate may spend surplus funds prior to certification. Pursuant to Section 6 of Act 244, a candidate is prohibited from using surplus funds upon certification.
16(b). Prior to certification, may a candidate distribute signs, bumper stickers and other campaign material?
Response: A candidate may distribute signs, bumper stickers and other campaign material up to certification.
However, once the candidate is certified, Section 9 of Act 244 provides that the candidate cannot accept for use any campaign material purchased or held from a date prior to filing the “Declaration of Intent to Seek Comprehensive Public Funds.” Pursuant to section 37, “a date prior” begins July 1, 2008, the date Act 244 was effective. Therefore, campaign material purchased or held between July 1, 2008 and the date of filing the “Declaration of Intent to Seek Comprehensive Public Funds” cannot be accepted for use once the candidate is certified.
After a candidate is certified, any campaign material purchased or held between July 1, 2008 and the date of filing the “Declaration of Intent to Seek Comprehensive Public Funds” that is under the control of the candidate, including coordination with the candidate, cannot be accepted for use.
Campaign material not under the control of the candidate, including coordination with the candidate, can be used by other persons, such as:
(1) Bumper stickers and t-shirts previously distributed;
(2) Signs distributed and not returned from prior elections;
(3) Signs distributed and not under the control of the candidate, including coordination with the candidate.
