Alabama Advisory Opinions October 13, 2006: AGO 2007-006 (October 13, 2006)

AGO 2007-006.

Dear Secretary Worley:

This opinion of the Attorney General is issued in response to your request.

If a candidate pays for campaign expenses out of that candidate's personal funds and then is reimbursed from that candidate's campaign account, sometimes for multiple expenses at the same time, does section 17-22A-8 of the Code of Alabama permit a candidate to list only himself or herself as the recipient on the expenditure report, or does section 17-22A-8 of the Code require the candidate to itemize the recipients of each expenditure made by that candidate from his or her personal funds?

Section 17-22A-8 of the Code of Alabama is a provision of the Fair Campaign Practices Act ("FCPA") that requires candidates, political committees, and elected officials to file reports of contributions and expenditures at various times during an election year and annually during a non-election year.

Ala. Code § 17-22A-8 (1995). Specifically, section 17-22A-8(c) of the Code of Alabama states, in pertinent part, as follows:

(c) Each report under this section shall disclose:

. . .

(7) The identification of each person to whom expenditures have been made by or on behalf of such committee or elected official within the calendar year in an aggregate amount greater than $100.00, the amount, date, and purpose of each such expenditure, and, if applicable, the designation of each constitutional amendment or other proposition with respect to which an expenditure was made; Ala. Code § 17-22A-8(c)(7) (1995) (emphasis added). You ask whether this provision permits a candidate to pay campaign expenditures from personal funds, obtain reimbursement from the campaign account, and then list only the candidate's name on the expenditure report.

The fundamental rule of construction is to ascertain and give effect to the intent of the Legislature in enacting the statute. Ex parte Ala. Dep't of Mental Health and Mental Retardation , 840 So. 2d 863, 867 (Ala. 2002); Gholston v. State , 620 So. 2d 719, 721 (Ala. 1993). In construing statutes, legislative intent may be gleaned from the language used, the reason and necessity for the act, and the purpose sought to be obtained. Bama Budweiser v. Anheuser-Busch , 611 So. 2d 238, 248 (Ala. 1992); Tuscaloosa County Comm'n v. Deputy Sheriffs' Ass'n of Tuscaloosa County , 589 So. 2d 687, 689 (Ala. 1991); Shelton v. Wright , 439 So. 2d 55, 57 (Ala. 1983).

In 1991, the Alabama Supreme Court stated that the primary purpose of the FCPA is to require candidates for public office in Alabama to disclose campaign contributions and expenditures prior to elections. Davis v. Reynolds , 592 So. 2d 546, 556 (Ala. 1991). In 1995, this Office addressed whether section 17-22A-8 permits a candidate to lump several expenditures under a general heading of credit card expenses and to list the credit card company as the identification of the person to whom the expenditures were made. Opinion to Jim Bennett, Secretary of State, dated March 1, 1995, A.G. No. 95-00132. In the Bennett opinion, this Office stated as follows:

The word "identification" . . . is defined in § 17-22A-2(5) as the "full name and complete address." There is no case law in Alabama that interprets the requirements of § 17-22A-8. However, there is case law that interprets a similar requirement under federal law in the Federal Election Campaigns. . . .

This provision has been held to require itemization of expenditures including dates, names, and purposes. The expenditures must be set forth in detail and several items must not be lumped together under a general heading. Barnes v. Durante , 75 Misc.2d 881, 348 N.Y.S.2d 928 (1973).

Using the same rationale with Alabama law, the name and address of each person to whom an expenditure is made in an amount greater than $100 along with the amount, date, and purpose of the expenditure must be reported or itemized. To simply list an expenditure of over $100 charged to a multi-purpose credit card without an itemization of the amount, date, and purpose of each expenditure included within the credit card statement would not be within the spirit or intent of the law. The expenditure is not made to the company; the company is used as a method of payment of an expenditure to some other person or entity.

Bennett at 2-3.

This same reasoning applies to candidates that pay campaign expenditures from personal funds and then obtain reimbursement from their campaign accounts. The name and address of each person to whom an expenditure is made in an amount greater than $100, along with the amount, date, and purpose of the expenditure, must be reported or itemized.

Ala. Code § 17-22A-8(c)(7) (1995). To permit a candidate to make multiple purchases with personal funds and then to list only himself or herself as the recipient on the expenditure report would allow that candidate to bypass the itemization requirements of the FCPA. Moreover, a candidate would be able to hide the recipients of his or her expenditures and thus defeat the intent of the law.

When a candidate makes a campaign purchase using personal funds and then is reimbursed from campaign funds, that candidate is not the person to whom the expenditure is made. Instead, for purposes of section 17-22A-8, the expenditure is made to the person or entity to whom the candidate makes the payment. Thus, a candidate may be reimbursed with campaign funds, but the principal campaign committee and the candidate must itemize the recipients for each of the expenditures made by that candidate.

Section 17-22A-8 of the Code of Alabama requires a principal campaign committee to itemize the recipients for each of the expenditures greater than $100 made by the committee. If a candidate pays for campaign expenses using that candidate's personal funds, the candidate's principal campaign committee may reimburse the candidate, but the committee and the candidate must itemize the recipients for each of the expenditures made by that candidate. This opinion is to be applied prospectively.

I hope this opinion answers your question. If this Office can be of further assistance, please contact Rushing Payne of my staff.

Sincerely,

TROY KING

Attorney General

By: BRENDA F. SMITH

Chief, Opinions Division

TK/WRP

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