Advisory Opinion 03-04

     A local not-for-profit theatre organization, Kumu Kahua Theatre, requests an advisory opinion regarding block discount tickets to a candidate committee, wherein, the candidate committee intends to resell the tickets to its supporters at a different price. Does this action precipitate any reporting requirements on behalf of the theatre organization and does such transaction run afoul of the campaign finance statute of the State? The Commission responds in the negative on both questions.

     Under the campaign finance statute, organizations that make contributions or expenditures on behalf of a candidate or committee to influence the outcome of the nomination or election of a candidate in excess of $1,000 in a two year election cycle are required to report such contributions and expenditures.

     In the instant case, the sale of the block of tickets by the theatre organization at a discount is a common business practice. The individual or organization purchasing the ticket is able to resell the tickets, give away the tickets, or use the ticket in any manner to encourage attendance to the theatre organization performance. The theatre company does not place additional restrictions on the individual organization purchasing the tickets. Nor does it place any restrictions on a political organization.

     The Commission views the transaction between the Kumu Kahua Theatre organization and the candidate committee as a relationship between vendee and vendor. There is no expectation on the vendor, Kumu Kahua Theatre, for any political purpose that would give rise to a contribution or expenditure as defined under the campaign spending statute. The candidate committee is required to report the purchase of tickets and the sale, if any, of the tickets in the usual manner as provided by law. The vendor, has no further obligation to the campaign spending statute or administrative rules.

     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 under 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, November 10, 2003.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Mona Chock
Commissioner