Campaign Spending Commission

August 24, 2016

MEMORANDUM

TO: Candidates That Were Successful In The 2016 Primary Election

FROM: Kristin E. Izumi-Nitao, Executive Director
Campaign Spending Commission

SUBJECT: Important Information and Reminders

The Hawaii Campaign Spending Commission (“Commission”) would like to congratulate you on being elected to serve the State of Hawaii and/or its counties. We know that this is an exciting and busy time as you prepare to take office, but would like to take this opportunity to remind you of some important information.

I. CERTIFICATION OF 2016 ELECTED OFFICIALS

Under Hawaii Revised Statutes (“HRS”) §11-156 (see Act 139, SLH 2014), the chief election officer or county clerk is required to deliver certifications of election to the persons elected only after they have filed all of their reports with the Commission and paid all fines assessed by the Commission. This means that all reports, including but not limited to the Final Election Period Report which is due on Thursday, December 8, 2016, must be electronically filed. Further, all fines that were assessed by the Commission must be paid. It is critical that you know when you will be sworn into office, and if that occurs prior to December 8, 2016, you must file this report prior to the date you will be sworn into office as well as pay all fines.[1] Election officials will not be issuing certificates of election to any candidate until such time as the Commission informs them of compliance with this requirement.

II. USE OF CAMPAIGN FUNDS

With the exception of partial public funding candidates who must return any and all unused public funds to the Commission by December 8, 2016, any funds remaining in your campaign account after the November 8, 2016 general election must be expended by November 8, 2020 unless a new Organizational Report is filed on or before November 8, 2020. Filing a new Organizational Report typically means that you intend to run in the next subsequent election. Campaign funds may also be used as provided in HRS §11-381 or returned to contributors until four (4) years from the date of the election for which the campaign funds were received. Funds that are not used or returned to contributors shall escheat to the Hawaii Election Campaign Fund (“HECF”). See, HRS §11-384(c).

Based upon the foregoing provisions and our Hawaii Administrative Rules (“HAR”), you may therefore use your campaign funds to run in the next subsequent election or spend it on any of the following by November 8, 2020:

• Return contributions to contributors (see, HRS §11-384(d))[2] or paying back loans;
• Donate to any community service, educational, youth, recreational, charitable, scientific, or literary organization up to no more than twice the maximum amount that one person may contribute to your office but the donation cannot occur until after the November 8, 2016 general election and the prohibition will start again from the date you file nomination papers for the next election to the date of that general election (see, HRS §11-381(a)(3));
• Donate to any public school or public library up to no more than twice the maximum amount that one person may contribute to your office (see, HRS §11-381(a)(4));
• Award scholarships to full-time students attending an institution of higher education or a vocational education school in a program leading to a degree, certificate, or other recognized educational credential up to no more than twice the maximum amount that one person may contribute to your office but the donation cannot occur until after the November 8, 2016 general election and the prohibition will start again from the date of the nomination paper filing deadline for the next election to the date of that general election (see, HRS §11-381(a)(5));
• Purchase two tickets for each event including a fundraiser held by another candidate or committee (see, HRS §11-381(a)(6));
• Contribute not more than $25,000 in aggregate in any two-year election period to your political party so long as the contributions are not earmarked for another candidate (see, HRS §11-381(a)(7));
• Pay for “ordinary and necessary expenses” incurred in connection with your duties as an office holder such as making reasonable expenditures for a “Mahalo Party” shortly after the general election and newsletters to supporters as well as gifts “for one or more campaign employees or volunteers . . . of not more than an aggregate of $500 for a two-year office, $1,000 for a four-year non-statewide office, or $1,500 for a four-year statewide office” (see, HRS §11-381(a)(8) and HAR §3-160-43);[3]
• Purchase or lease consumer goods, vehicles, equipment, and services that provide a mixed benefit; however, you must reimburse your committee for any non de minimus personal use of these items (see, HRS §11-381(a)(2)); and/or
• Escheat funds to the HECF (see, HRS §11-384(d)).

Regardless of how you choose to spend your campaign funds, please be mindful that any expenditure of campaign funds must be reported in the appropriate disclosure report and electronically filed with the Commission.

If you have any questions, please do not hesitate to contact us at (808) 586-0285. Thank you for your kokua and commitment to public service.

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[1] We understand that the following officials will be sworn-in on December 1, 2016:  Hawaii County Mayor, Hawaii County Prosecuting Attorney, and Hawaii County Council members.  This is not conclusive and we strongly advise that you verify all information with your County Clerk’s office.

[2] If you decide to return contributions to your contributors, it is your choice as to the order of the return of contributions (e.g., last in, last out; first in, first out; pro rata; etc.).

[3] For more examples including prohibited expenses for which your committee will be fined, go to ags.hawaii.gov/campaign/authorized-expenditures.

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This memo applies to the following candidates:

Candidate	Office	District	County
Anderson, Ikaika	Honolulu Council	3	Honolulu
Aquino, Henry	House	38
Cachola, Romy	House	30
Choy, Isaac	House	23
Chung, Aaron	Hawaii Council	2	Hawaii
Cullen, Ty	House	39
David, Maile	Hawaii Council	6	Hawaii
Dela Cruz, Donovan	Senate	22
Eoff, Karen	Hawaii Council	8	Hawaii
Gabbard, Mike	Senate	20
Har, Sharon	House	42
Hashem, Mark	House	18
Ichiyama, Linda	House	32
Ito, Ken	House	49
Kanuha, Dru	Hawaii Council	7	Hawaii
Keith-Agaran, Gilbert	Senate	5
Keohokalole, Jarrett	House	48
Kim, Donna	Senate	14
Kim, Harry	Mayor		Hawaii
Kong, Samuel	House	33
Kouchi, Ron	Senate	8
Lee, Christopher	House	51
Luke, Sylvia	House	25
Machado, Colette	OHA	Molokai
Matsumoto, Lauren	House	45
Nishimoto, Scott	House	21
Ohno, Takashi	House	27
Pine, Kymberly	Honolulu Council	1	Honolulu
Poindexter, Valerie	Hawaii Council	1	Hawaii
Richards, Herbert	Hawaii Council	9	Hawaii
Roth, Mitchell	Prosecuting Attorney		Hawaii
Ruggles, Jennifer	Hawaii Council	5	Hawaii
Saiki, Scott	House	26
Thielen, Cynthia	House	50
Tokioka, James	House	15
Tsuji, Clifton	House	2
Woodson, Justin	House	9
Yamashita, Kyle	House	12