Advisory Opinion 02-09

     This Advisory Opinion ("Opinion") responds to a request for clarification on whether individuals or "separate entities" must file contractor disclosure reports if they do not make contributions directly to a candidate, committee, or party but pay dues or fees to an organization or entity who does make such contributions. In short, only those individuals or entities that contribute directly to a candidate, committee, or political party and has entered into a contract worth $50,000 or more within any calendar year with any State, county or respective subdivision of the State or county agency must file a contractor disclosure report.

     It is the Campaign Spending Commission’s ("Commission") understanding that several business entities contribute funds to an unincorporated association of entities or organizations ("Organization") through separate contributions. The Commission also understands that the Organization collects these non-political contributions pursuant to a "Collective Bargaining Agreement" and makes an independent determination to transfer no more than $1,000 of each business entity’s contribution to the Organization’s noncandidate committee fund.

     Section 11-205.5, Hawaii Revised Statutes ("HRS"), provides that any person who enters into a contract worth $50,000 or more within a calendar year and is responsible for "making a contribution to any candidate, committee, or political party" shall register and report that fact to the Commission. The plain reading provides that the contribution must be made directly from the person to the candidate or committee.

     Therefore, where separate business entities are contributing to a legitimate organization, that was not created for the sole purpose of circumventing the campaign spending laws or earmarking contributions for candidates, candidate committees, or political parties, those separate business entities are not subject to the state contractor reporting requirements.

     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, December 2, 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