Campaign Spending Commission

     When a corporation, labor union, or any other organization makes contributions to a candidate or to the candidate’s committee out of its own treasury, the corporation, labor union or organization is subject to the contribution limits of subsection (a) of the Hawaii Revised Statutes (“HRS”) section 11-204.

     Subsection 11-204(a), HRS, in pertinent part, sets forth limits on contributions from any “person or any other entity” to a candidate or candidate’s committees:

(a) No person or any other entity shall make contributions to:

(1) A candidate seeking nomination or election to a two-year office or to the candidate’s committee in an aggregate amount greater than $2,000 during an election period; and

(2) A candidate seeking nomination or election to a four-year statewide office or to the candidate’s committee in an aggregate amount greater than $6,000 during an election period; and

(3) A candidate seeking nomination or election to a four-year nonstatewide office or to the candidate’s committee in an aggregate amount greater than $4,000 during an election period.

     Accordingly, a corporation, labor union or any organization making a contribution out of its own treasury account to a candidate or candidate’s committee is subject to the contribution limits set forth in subsection 11-204(a), HRS. For example, if Corporation A were to make campaign contributions to Candidate X running for the Office of Governor, the aggregate amount that Corporation A may contribute out of its own treasury account to Candidate X or Candidate X’s committee cannot exceed $6,000 during an election period. pursuant to subsection 11-204(a)(2), HRS.

     Subsection 11-204(b), HRS, sets forth limits on contributions from any “person or any other entity” to noncandidate committees:

(b) No person or any other entity shall make contributions to a noncandidate committee in an aggregate amount greater than $1,000 in an election.

     A “noncandidate committee” under section 11-191, HRS includes any organization that accepts a contribution or makes an expenditure for or against any candidate, and with or without the authorization of the candidate. The Campaign Spending Commission has determined that a noncandidate committee includes any corporation, labor union, or any organization that has made aggregate contributions to candidates in excess of $1,000 in an election. HRS section 11-191 requires such a corporation, labor union or any organization that falls within the statutory definition of a “noncandidate committee” to register with the Commission by filing an organizational report.

     Under subsection 11-204(b), HRS, if Corporation B were to make campaign contributions to a noncandidate committee like the Corporation B Political Action Committee (“PAC”), the aggregate amount that Corporation B may contribute out of its own treasury account to Corporation B PAC cannot exceed $1,000 in an election.

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

Dated: Honolulu, Hawaii, June 21, 1996.

CAMPAIGN SPENDING COMMISSION

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Jim Wang
Chairperson

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William H. Gilardy, Jr.

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May Oshiro

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Phillip A. Li

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Lissa H. Andrews