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SB2039
THE SENATE
S.B. NO.
2039
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING
TO ELECTIONS
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The Hawaii
Revised Statutes is amended by adding a new chapter to title 23 to be
appropriately designated and to read as follows:
"
Chapter
UNAUTHORIZED
ELECTION AND CAMPAIGN FINANCE ACTIVITIES BY BUSINESS ENTITIES
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Definitions.
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As used in this chapter, unless the context
requires otherwise:
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"Business
entity" means a corporation, association, partnership, limited liability
company, or other non-natural person regulated by this title or title 23A.
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"Campaign
finance activity" means the funding of activity promoting or opposing a
political candidate or position on a ballot question.
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"Covered
business entity" means a business entity whose owners, shareholders,
members, or managers are protected under this title or title 23A by some
limitation of liability for actions of the business entity.
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"Department"
means the department of commerce and consumer affairs.
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"Election
activity" means activity promoting or opposing a political candidate or
position on a ballot question.
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Election and campaign finance activities; business entities;
prohibited.
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(a)
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Notwithstanding any provision of this title, title 23A, or any other law
to the contrary, a covered business entity shall not engage in any election
activity or campaign finance activity.
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(b)
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If a covered business
entity engages in election activity or campaign activity in violation of this
section:
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(1)
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The
covered business entity shall be subject to involuntary dissolution or dissociation
pursuant to rules adopted by the department under chapter 91; and
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(2)
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From
the date of the prohibited activity, the entity's
owners, shareholders, members, and managers, as applicable, shall be
subject to the same liability for that entity's actions as general partners
would be for the actions of a general partnership.
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(c)
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This chapter shall not be construed to prohibit the election activities
or campaign finance activities of candidate committees and noncandidate committees
regulated by part XIII of chapter 11, or similar entities regulated by federal
campaign spending laws."
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SECTION 2.
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This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.
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SECTION 3.
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If any provision of this Act, or the application thereof to any person
or circumstance, is held invalid, the invalidity does not affect other
provisions or applications of the Act that can be given effect without the
invalid provision or application, and to this end the provisions of this Act
are severable.
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SECTION 4.
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This Act shall take effect upon its approval and upon ratification
during the 2026 general election of a amendment to article I, section 4, of the
Constitution of the State of Hawaii to provide that the participation of non‑natural
persons in election and campaign finance activities may be regulated,
restricted, or prohibited as provided by law.
INTRODUCED BY:
_____________________________
Report Title:
DCCA;
Corporations; Business Entities; Regulation; Elections
Description:
Prohibits
certain business entities from engaging in election and campaign finance
activities.
The summary description
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not legislation or evidence of legislative intent.