Oregon Advisory Opinions March 20, 1969: OAG 69-27 (March 20, 1969)
Collection: Oregon Attorney General Opinions
Docket: OAG 69-27
Date: March 20, 1969
Advisory Opinion Text
OAG 69-27.
State Representative
House of Representatives
State Capitol
You have written as follows:
"I would appreciate an opinion from your office as to whether or not an unpaid obligation is considered to be an expenditure under the Corrupt Practices Act as it applies to political contributions and expenditures and whether or not an outstanding loan is considered to be a contribution."
Regulation of political contributions and expenditures, and requirement of reports concerning the same, are provided for in ORS 260.040 to 260.130.
ORS 260.040 provides a limitation on the expenditures of candidates in a campaign for nomination for public office. The limitation also applies to certain persons related to the candidate in family or business. The statute provides that no money shall be paid "and no expenses authorized or incurred" in excess of 15 percent of one year's salary for the office for which he seeks nomination as a candidate.
ORS 260.050 provides a limitation on expenditures by candidates who have received nomination for public office. The limitation as in ORS 260.040 also applies to certain persons related in family or business. The statute provides that no money shall be paid "and no expenses authorized or incurred" in excess of 10 percent of one year's salary of the office for which the candidate has been nominated.
ORS 260.060 requires the filing of statements of expenditures by candidates and provides:
"* * * These statements shall set forth in detail all the moneys contributed, expended or promised by him to aid and promote his nomination or election, or both, as the case may be, and for the election of his party candidates, and all existing unfulfilled promises of every character and all liabilities remaining uncanceled and in force at the time such statement is made * * *."
ORS 260.065 and 260.067 require statements to be filed by party and other political committees.
ORS 260.075 (5) provides:
"In the event a statement shows a deficit or an unexpended balance, a supplemental statement shall be submitted within 30 days after the initial filing and every 60 days thereafter until the statement shows neither a deficit nor an unexpended balance. * * *"
ORS 260.080 sets forth the form for the statement of expenses and requires the person making the statement to swear that no "money or equivalent for money" has "been paid, advanced, given or deposited by anyone" except as specified in the statement of expenses.
ORS 260.130 requires statements of contributions and expenditures made after an election for the purpose of reducing a campaign deficit.
Your question first asks whether an "unpaid obligation" is an "expenditure." We assume you are referring to an obligation incurred for campaign purposes, which obligation is to be discharged by payment of something of value, usually money.
The Corrupt Practices Act does not contain a definition of "expenditure" but, as we have seen, ORS 260.060 requires of candidates that "all existing unfulfilled promises of every character and all liabilities remaining un
canceled and in force" must be reported. This broad language would cover any "unpaid obligation." When ORS 260.060 is read together with ORS 260.040 and 260.050, it must be considered that such an obligation is furthermore an expense "incurred" by a candidate within the meaning of the latter statutes.
ORS 260.080, in prescribing the form for financial statements to be submitted, requires that all such statements include an itemization of money "or equivalent" thereof which has been advanced. Its terms would include reporting of any "unpaid obligation."
This statute applies to statements of both candidates and political committees.
An "unpaid obligation" as defined above would therefore come within the requirements of the Corrupt Practices Act regarding limitations on and reporting of expenditures. The first part of your question is answered in the affirmative.
The second part of your question asks whether an "outstanding loan" is a "contribution." We assume you are referring to a loan of money for campaign purposes.
The Corrupt Practices Act does not contain a definition of "contribution." ORS 260.060 requires that financial statements set forth "all moneys contributed" and ORS 260.075 provides in part:
"(2) The statements shall, under contributions, list all money received from individuals setting forth the name and address of the contributor of amounts in excess of $5. Contributions in amounts of $5 or less may be listed as a single item but must specify how these funds were obtained. All items of value received in excess of $5 shall be listed showing name and address of the contributor and the value of the item received.
"(5) In the event a statement shows a deficit or an unexpended balance, a supplemental statement shall be submitted within 30 days after the initial filing and every 60 days thereafter until the statement shows neither a deficit nor an unexpended balance. This subsection does not apply to state and county central committees."
In Webster's New International Dictionary, 2d ed., "contribute" is defined as:
"To give or grant in common with others * * * to give (money or other aid) for a specific object * * * ."
The provision in subsection (2), supra, that "all money received" be listed under "contributions" must be considered as qualified by the term "contributions." Separate provision is made for reporting deficits. A true loan would not be considered a gift or grant. There is an obligation to repay, and money received for the purpose of paying the loan, rather than the loan itself, represents the contribution.
(We are aware that sometimes items considered for the purposes of a campaign to be "loans" are not in the end result repaid and are "forgiven" either under circumstances contingently agreed to at the time the initial "loan" is made, or because of circumstances later arising. Where this occurs, it is the "forgiving" of liability that would constitute a "contribution" and would be reported, pursuant to ORS 260.075 (5) in a supplemental report or, if the loan has ceased to be a loan in fact prior to the time of filing the original financial statement, it would constitute a "contribution" within the intended meaning of that term. Whether or not money received for campaign purposes is obtained by way of contribution or by way of a true loan is,
of course, ultimately a question of fact which election officials may determine under ORS 260.090 and 260.105.)
We answer the second part of your question by saying that a true outstanding loan is not a "contribution."