Advisory Opinion 01-09

     A candidate raised the question of whether campaign funds may be used to attend banquets, golf tournaments, and testimonials. While the Commission acknowledges that this question may be addressed on a case by case basis, the general answer is in the negative.

     Banquets, golf tournaments, and testimonials are often vehicles used by charitable or non-profit organizations as fundraisers. However, the problem is the issue of whether the candidate or candidate committee is expending campaign funds for a personal expense.

     Section 2-14.1-15(b), Hawaii Administrative Rules defines "personal expense" to mean "any use of campaign contributions for an expense that would exist irrespective of a candidate’s campaign to seek nomination or election to office." The narrow issue is whether the candidate’s expenditure of campaign funds to attend a banquet, golf tournament, or testimonial would exist irrespective of the candidate’s efforts for nomination or election.

     The Commission understands that many candidates, more often incumbents, are requested to attend these events because of their status as a local representative. The Commission also understands that candidates use these events as an opportunity to campaign. However, these realities must be weighed against the fact the candidates derive a personal benefit in exchange for the expenditure of campaign contributions.

     The Commission applies a narrow interpretation of sections 11-200(b)(3) and 11-206(c)(3), HRS. This interpretation does not afford candidates the opportunity to spend campaign contributions to pay for events such as community banquets, dinners and golf tournaments. This is consistent with the tax rulings that do not permit tax deductions for events such as Girl Scout cookie sales or "Huli-Huli" chicken ticket purchases for fundraisers. The personal decision to expend financial resources to attend these events would exist irrespective of the candidate’s campaign efforts. The aforementioned statutes specifically provide that campaign funds may be contributed directly to any community service, educational, youth, recreational, charitable, scientific, or literary organization.

     The Commission distinguishes contributions made directly to organizations to be apart from an expenditure that provides candidates or their representative a personal benefit in the form of a meal or activity such as a round of golf. The latter would not be deemed a proper expenditure of campaign funds or surplus campaign funds.

     This Advisory Opinion is provided by the Commission as a means of stating its current interpretation of the Hawaii Election Campaign Contributions and Expenditures laws provided under Hawaii Revised Statutes, section 11-191, et seq. and the administrative rules of the Commission provided in chapter 2-14.1, Hawaii Administrative Rules. The Commission may adopt, revise or revoke this Advisory Opinion upon the enactment of amendments to the Hawaii Revised Statutes or the adoption of administrative rules by the Commission.

Dated: Honolulu, Hawaii, January 15, 2002.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Della Au Belatti
Commissioner

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Mona Chock
Commissioner

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Richard Choy
Commissioner

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Clifford Muraoka
Commissioner