Advisory Opinion 05-05
This Advisory Opinion responds to a noncandidate committee (Committee) that asks whether the Committee must report as donors the employees of signatory employers to a collective bargaining agreement when the employers make contributions to the Committee's sponsoring organization, which then makes contributions to the Committee (noncandidate committee).
The Campaign Spending Commission (Commission) responds in the negative. The Committee must report the employers as the donors.
We understand that the Committee's sponsoring organization is funded by contributions from signatory employers to a collective bargaining agreement. Contributions to the sponsoring organization are calculated based upon an hourly rate in the collective bargaining agreement multiplied by the number of hours worked by employees of signatory employers. The signatory employers send funds monthly to the sponsoring organization and a transmittal listing each employee and the number of hours worked by each employee. The sponsoring organization makes contributions to the Committee.
The Committee has registered with the Commission by filing an organizational report.1 The Committee also must file preliminary, final, and supplemental reports with the Commission,2 which disclose, among other things, "the amount and date of deposit of the contribution and the name and address of each donor who contributes an aggregate of more than $100 during an election period." (emphasis added)
The contributions to the sponsoring organization are drawn from the general treasury funds of signatory employers and are based upon the number of hours worked by an employee. These funds are not reported as employee wages, subject to withholding tax. An employee has no rights to receive these funds from the employer, whether an employee works or does not work any hours. The sponsoring organization does not distribute these funds to employees. These funds are the employers' funds.
The Committee, therefore, does not report the employees as donors.
The Commission provides this Advisory Opinion as a means of stating its current interpretation of the Hawaii Campaign Spending 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, July 14, 2005.
CAMPAIGN SPENDING COMMISSION
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Paul Kuramoto
Chairperson
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Steven E. Olbrich
Commissioner
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Gino Gabrio
Commissioner
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Dean Robb
Commissioner
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Michael E. Weaver
Commissioner
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1 Sections 11-194 and 11-196.5, Hawaii Revised Statutes (HRS).
2 Sections 11-212(b) and 11-213(b), HRS.
