SENATE ADVANCES SB 2471 TO RESTRICTCORPORATE INFLUENCE IN HAWAIʻI ELECTIONS

HONOLULU - The Hawaiʻi State Senate advanced SB 2471, SD2, Relating to the Powers of Artificial Persons, a measure that reaffirms the State’s authority to define and limit powers granted to corporations and other artificial entities created under state law. The bill is scheduled for third reading tomorrow.

The measure clarifies that corporations, limited liability companies, partnerships, nonprofit corporations, cooperative associations, and other artificial persons organized under Hawaiʻi law possess only those powers necessary or convenient to carry out lawful business, charitable, or organizational purposes. It specifies that those powers do not include election or ballot related activity. To prevent out-of-state corporations from having an advantage over Hawaiʻi-based corporations on election and ballot issue matters, the Judiciary Committee restored language to the bill so that it also applies to corporations and other entities formed in other states that are operating in Hawaiʻi.

“SB 2471 reinforces a simple democratic principle: elections belong to the people, not corporations,” said Senator Karl Rhoads (Senate District 13 – Dowsett Highlands, Pu‘unui, Nu‘uanu, Pacific Heights, Pauoa, Punchbowl, Pālama, Liliha, Iwilei, Chinatown, and Downtown), Chair of the Senate Judiciary Committee. “By clarifying that corporate powers are limited to lawful business and organizational purposes and do not include spending to influence elections, this measure protects the integrity of our democratic process and helps ensure that Hawaiʻi voters, not corporate dollars, shape our future.”

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