Advisory Opinion 02-03

     This advisory opinion addresses the question of whether moneys received through political activities involving the sale of food, sundry items, or service projects must be reported. In brief, the Campaign Spending Commission ("Commission") answers in the affirmative. Moneys received from the sale of food, sundry items, or other services should be reported as a lump sum aggregate contribution amount.

     Section 11-199, Hawaii Revised Statues ("HRS"), provides that a committee, for their own records must record the name and address of donors who contribute over $25. The names and addresses of contributors who contribute over $100 must be disclosed to the Commission and a receipt or transaction record must be recorded for those contributions exceeding $100.

     The Commission acknowledges that candidates and non-candidate committees may sell food and sundry items at various events or on their own to raise campaign funds or to gain exposure. The Commission also recognizes that often these items are sold for under $25. Examples include but are not limited to the sale of beef sticks, barbecue chicken, chili, cookies, chocolates, food booths, breakfasts, steak dinners, calendars, and cookbooks. Service projects may include but are not limited to car washes. Although the value of these items usually fall within the general range of $1 - $15, the sum of all sales must be included on the Commission’s disclosure reports as part of the aggregate contribution amount for contributions less than $100. The names and addresses of individuals who purchase more than $25 should be recorded for committee record-keeping purposes.

     The campaign spending laws do not prohibit political or fundraising activities described as sales of the food, calendars, cookbooks and car washes. However, all sales are to be deemed contributions and any and all expenditures related to such fundraising activities must be reported on the applicable campaign spending disclosure reports.

     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 HRS section 11-191, et seq. and the administrative rules of the Commission provided in chapter 2-14, Hawaii Administrative Rules. The Commission may adopt, revise, or revoke this Advisory Opinion upon its own initiative or upon the enactment of amendments to the Hawaii Revised Statutes or the adoption of administrative rules by the Commission.

Dated: Honolulu, Hawaii, July 3, 2002.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Della Au Belatti
Commissioner

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Clifford Muraoka
Commissioner

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Mona Chock
Commissioner

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Richard Choy
Commissioner