Advisory Opinion 04-02

     An advisory opinion sought regarding reporting of contributions and expenditures by a political action (noncandidate) committee holding campaign training schools for candidates. The campaign training school is a one-day session to teach candidates the basics on how to run a campaign. Expenses for the training school include such items as consultants from the mainland, rental of space and food. Candidates that attend the school may or may not receive contributions from the political action (noncandidate) committee.

     The first question raised is whether the costs of holding the campaign candidate school are an in-kind contribution to the candidate. The campaign finance statute, section 11-191, Hawaii Revised Statutes ("HRS") defines a contribution in part as:

     A gift, subscription, deposit of money or anything of value, or cancellation of a debt or legal obligation and includes the purchase of tickets to fundraisers for the purpose of:

(A) Influencing the nomination for election, or election, of any person to office;
(B) Influencing the outcome of any question or issue that appears or is reasonably certain to appear on the ballot at the next applicable election described in subsection (A);or
(C) Use by any party or committee for the purposes set out in subparagraph (A) or (B);

     The political action committee is providing the candidate a service with a value for the purpose of influencing the nomination for election, or election, of any person to office. Therefore, in providing this service on how to run a campaign to a candidate, the political action committee is providing an in-kind contribution to the candidate. Thus, on the first question the Commission answers in the affirmative.

     Second, "are the monies that are paid towards the costs of holding the campaign candidate school considered contributions to the political parties from which the candidates come from?" The response to this question assumes that the political action (noncandidate) committee providing the candidate training school is independent of any political party. The costs or expenses incurred by the political action committee must be reported as expenditures by the political action committee. There are no transfers of funds or provisions of services to any political party, thus, no contribution to a political party. Based on the assumption that there is no connection between the political action committee and the political party, the Commission answers the question in the negative.

     Third, "do the monies that are paid towards the costs of holding the campaign candidate school count against the PAC as part of the $1,000 limit a PAC is allowed to receive in an election?" We understand the question to be whether the contributions made to the PAC for the purpose of conducting the campaign candidate school are subject to the contribution limit of section 11-204(b), HRS, i.e., $1,000 in an election. "No person or any other entity" shall make contributions to a noncandidate committee in an amount greater than $1,000. The Commission responds in the affirmative.

     The last question, "can you see any problems with inviting potential candidates to attend the campaign school from only the democratic and republican parties?" The matter of inviting candidates to the political action committee training for candidates is entirely at the discretion of the committee. The Commission's concern under the law is to insure that the associated expenses and contributions are properly reported. The Commission responds in the negative.

     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 the enactment of amendments to the Hawaii Revised Statutes or the adoption of administrative rules by the Commission.

Dated: Honolulu, Hawaii, June 2, 2004.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Mona Chock
Commissioner

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Steven E. Olbrich
Commissioner

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Gino L. Gabrio
Commissioner

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Paul Kuramoto
Commissioner