Advisory Opinion 05-04

     This Advisory Opinion responds to a candidate who asked whether the income received from the sale of advertising in the candidate’s newsletter are contributions that must be reported to the Campaign Spending Commission ("Commission").

     The Commission responds in the affirmative.1

     We understand that the candidate publishes newsletters paid with campaign funds and plans to charge a restaurant or other vendors for advertising in the newsletters. The advertising may include a discount offer for the services provided or goods sold by the restaurant or other vendors.

     A "contribution" includes any gift, deposit of money, or anything of value made by any person for the purpose of influencing an election for a Hawaii elective public or constitutional office.2 The Commission interprets this term broadly and anything of value is a contribution, unless an exemption exists.

     The current factual situation is analogous to the facts presented in prior Advisory Opinions where the Commission determined that there was a contribution when:

• A candidate sold fundraising items (e.g., beef sticks, barbecue chicken, chili, cookies, chocolates, food booths, breakfasts, steak dinners, calendars, and cookbooks);3
• A candidate received artwork or paintings and sold those items;4
• A candidate purchased theatre tickets and resold the tickets;5 and
• A candidate received monies from service projects (e.g., car washes).6

     Accordingly, the income received by the candidate from the sale of advertising to vendors is a contribution and the candidate must:

• Record the name and address of donors (vendors) who contribute over $25;7
• Report to the Commission all contributions and the names and addresses of donors who contribute over $100;8 and
• Comply with contribution limits9 and prohibitions in Hawaii’s campaign spending law.

     The Commission provides this Advisory Opinion 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, April 20, 2005.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Paul Kuramoto
Vice-Chair

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Steven E. Olbrich
Commissioner

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Gino L. Gabrio
Commissioner

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Dean Robb
Commissioner

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1 The candidate asked whether the advertising is a "fundraiser" under section 11-203, Hawaii Revised Statutes (HRS). This is not a fundraiser because a "function" is not held.

2 "Contribution" means:
(1) 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 subparagraph (A); or
(C) Use by any party or committee for the purposes set out in subparagraph (A) or (B);
(2) The payment, by any person political party, or any other entity other than a candidate or committee, of compensation for the personal services or services of another person that are rendered to the candidate or committee without charge or at an unreasonably low charge for the purposes set out in paragraph (1)(A), (1)(B), or (1)(C);
(3) A contract, promise, or agreement to make a contribution; provided that notwithstanding this paragraph and paragraphs (1) and (2), the term "contributions" shall not include services or portions thereof voluntarily provided without reasonable compensation by individuals to or in behalf of a candidate or committee; or
(4) Notwithstanding paragraphs (1), (2), and (3), a candidate’s expenditure of the candidate’s own funds or the making of a loan or advance in the pursuit of the candidate’s campaign shall not be a contribution for the purpose of this subpart but shall nevertheless be reportable as a campaign receipt. See section 11-191, HRS.

3 Advisory Opinion No. 02-03.

4 Advisory Opinion No. 00-08.

5 Advisory Opinion No. 03-04.

6 Advisory Opinion No. 02-03.

7 Section 11-199(b), HRS.

8 Section 11-212 and 213, HRS.

9 Section 11-204(a), HRS, allows donations of $2,000 to a candidate for a two-year office; $4,000 for a four-year office; and $6,000 for a statewide office. Section 11-204(k), HRS, permits a person or other entity to contribute $25,000 to a political party in a two-year election period.