Information For Contributors

The Hawaii Campaign Spending Commission[1] has prepared this general guide to explain Hawaii laws applicable to a person contributing to a Hawaii[2] State or County candidate and candidate committee; or a noncandidate committee.

Hawaii’s campaign finance laws regulate contributions and expenditures in Hawaii State and county elections.    The laws, among other things, prohibit certain contributions and limit the amount of contributions to a candidate or candidate committee; and a noncandidate committee.[3]

WHAT IS A CONTRIBUTION?[4]

A contribution is anything of value given to influence the nomination for election, or election, of any candidate to office or to influence the outcome of any question or issue that appears or is reasonably certain to appear on the ballot of the next applicable election. A contribution includes the following:

·    A gift;
·    Subscription;
·    Deposit of money or anything of value including personal services;
·    Cancellation of a debt or legal obligation; and
·    Purchase of tickets to fundraisers.

Types of Contributions

Monetary Contributions
A monetary contribution may be made by check,[5] credit card, or cash.  Cash contributions of more than $100 shall not be accepted by the candidate or the committee without issuing a receipt to the contributor.

Non-monetary Contributions
Non-monetary contributions include, but are not limited to the following:

·    The donation of goods offered without charge or at an unreasonably low charge;
·    The payment, by any person other than the candidate or committee, of compensation for the services of another person which are provided to the candidate or committee without charge or at an unreasonably low charge; and
·    Coordinated activity.[6]

Fair Market Value of non-monetary contributions
·     Goods (such as equipment, supplies and consumable items) are valued at the price the goods would cost if purchased or rented at the time the non-monetary contribution is made.  For example, if someone contributes the use of a facility, the non-monetary contribution is the usual and normal charge to rent the facility at the time of the non-monetary contribution.

·     Services (such as consultant services) are valued at the prevailing commercial rate at the time the services are rendered.

The fair market value of a non-monetary contribution is included in a person’s aggregate contributions.

All contributions are subject to the prohibitions and contribution limits discussed later in this guide.

Volunteers
When services are volunteered, i.e., the volunteer is not paid by any person, this is not a non-monetary contribution.

If a person, other than the candidate or committee, pays the “volunteer” for their services, the activity is no longer considered voluntary and the payments are non-monetary contributions.

PROHIBITED CONTRIBUTIONS

False Name Contributions
A contribution made in the name of another person is prohibited.   Contributions must be from a person's own money or property and reported in the name of the same person.  A contribution by a person that is reimbursed or in any way compensated by another person is prohibited.  All contributions made in the name of a person other than the owner shall escheat to the Hawaii Election Campaign Fund.

Anonymous Contributions
No person shall make an anonymous contribution of the person’s own money or property, or money of another person to a candidate, party, or committee in connection with a nomination for election, or election.  If an anonymous contribution is received and the contributor cannot be identified, the contribution shall escheat to the Hawaii Election Campaign Fund, unless the exception below is applicable.

Anonymous contributions that aggregate less than $500 may be retained if obtained through multiple contributions made by ten or more persons at the same political function (e.g., calabash bowls).  Detailed records must be retained of the political function.

Foreign National Contributions
No contributions or expenditures shall be made to or on behalf of a candidate or committee by a foreign national (individual who is not a citizen of the United States) or foreign corporation.

An individual may contribute if the individual has a "green card" indicating that he or she has been lawfully admitted for permanent residence and the source of the funds are generated locally.

State and County Contractor
Contributions from any person with certain contracts with the state, any of its counties, or any department or agency are prohibited at any time between the execution of the contract through the completion of the contract.  The prohibition is applicable to contracts for the rendition of personal services, the buying of property, or furnishing any material, supplies, or equipment to the state, any of its counties, department or agency thereof, or for selling any land or building to the State, any of its counties, or any department or agency thereof, if payment for the performance of the contract or payment for material, supplies, equipment, land, property, or building is to be made in whole or in part from funds appropriated by the legislative body.

The prohibition does not apply to personal contributions by employees, partners, shareholders or officers of the person with a government contract.

Nonresident Contributions
Contributions from any person, except for a member of the candidate's immediate family, who is not a resident of the state at the time the contributions are made, including a noncandidate committee organized under the laws of another state and whose participants are not residents of the state, shall not exceed twenty percent of the total contributions received by a candidate or candidate's committee for each reporting period.

CONTRIBUTION LIMITS

There are limits ($2,000, $4,000 or $6,000 per election period) on a person’s contributions to a candidate or candidate committee; these limits vary depending on the office the candidate is seeking.  For example, in the case of a House candidate in the 2010 election, a person may contribute up to $2,000 during the election period which began on November 5, 2008 and will continue through November 2, 2010.  In the case of a gubernatorial candidate in the 2010 election, a person may contribute up to $6,000 during the election period which began on November 8, 2006 and will continue through November 2, 2010.

A person may contribute up to $1,000 per election (not the election period) to a noncandidate committee.

Contributions to a candidate or candidate committee
The contribution limits vary according to the office that a candidate is seeking.  The contribution limits that apply to the three types of offices are as follows:

·    A candidate seeking nomination or election to a two-year office - Aggregate contributions not to exceed $2,000 during an election period;[7]
·    A candidate seeking nomination or election to a four-year nonstatewide office - Aggregate contributions not to exceed $4,000 during an election period;[8] and
·    A candidate seeking nomination or election to a four-year statewide office - Aggregate contributions not to exceed $6,000 during an election period.[9]

Election Period
“Election period” means the two-year period between general election days if a candidate is seeking nomination or election to a two-year office and the four-year time period between general election days if a candidate is seeking nomination or election to a four-year office.  The current election periods are as follows:

·    Two-year office (2010 Election Period) - November 4, 2008, through the day of the next general election which is November 2, 2010;
·    Four-year office (2010 Election Period) - November 8, 2006, through the day of the next general election which is November 2, 2010.

Limits for the Candidate's Immediate Family
Contributions from a candidate's immediate family are exempt from the above limitations but are limited in the aggregate to $50,000 in any election period.  The $50,000 aggregate limit includes any loans made for campaign purposes from the candidate's immediate family to the candidate.  A candidate's immediate family is defined as a candidate's spouse or reciprocal beneficiary, and any child, parent, grandparent, brother, or sister of the candidate, and the spouses or reciprocal beneficiaries of such persons.

Contributions to a noncandidate committee and political party; no limit on contributions to a ballot issue committee
A “noncandidate committee” means a committee that has the purpose of making contributions or expenditures to influence the nomination for election, the election of any candidate to political office, or for or against any issue on the ballot.

A person may contribute up to $1,000 per election (primary, general) to a noncandidate committee.  The 2010 primary election is from November 5, 2008 through September 18, 2010; the general election is from September 19, 2010 through November 2, 2010.[10]

A person other than political committees established and maintained by a national political party may contribute to a political party in an aggregate amount up to $25,000 in any two-year election period.

A “ballot issue committee” is a type of noncandidate committee which has the exclusive purpose of accepting contributions or making expenditures for or against any issue appearing on the ballot at the next applicable election.  A ballot issue committee is prohibited from contributing to a candidate, candidate committee, or noncandidate committee.  There is no limit on contributions to a ballot issue committee.

EXCESS CONTRIBUTIONS

If a contribution exceeds the limit and

·    A refund is received within 7 days of receipt of the excess contribution by the candidate or committee, you are not subject to a fine for the excess contribution.
·    A refund is received after 7 days, but within 30 days of the candidate or committee’s receipt of the excess contribution, you are subject to a fine for the excess contribution.
·    A refund is not received within 30 days of the candidate or committee’s receipt of the excess contribution, you are subject to a fine for the excess contribution and the excess contribution must escheat to the Hawaii Election Campaign Fund.

                      REPORTING REQUIREMENTS (recipient; contributor)

The candidate or committee receiving contributions must file periodic reports disclosing all contributions.

·    The candidate or candidate committee must report your name and address if you contribute more than $100 during an election period.  If you contribute more than $1,000 during an election period, your employer and occupation most also be reported.
·    The noncandidate committee must report your name, address, employer, and occupation if you contribute more than $100 during an election period.

The contributor or contributors also may have to register with the Commission as a noncandidate committee and file periodic reports if any organization, association, or individual accepts or makes contributions or makes expenditures aggregating more than $1,000, in the aggregate, in a two-year election period.  These registration and reporting requirements are not applicable to an individual making a contribution or expenditure of the individual's own funds or anything of value that the individual originally acquired for the individual's own use; and a corporation contributing directly from treasury funds to a candidate.