SB 1032: CSC; Campaign Finance; Foreign Nationals; Foreign Corporations; Foreign-Influenced Business Entities; Exemption; Cargo Carriers
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-04-08
Current Status:
Failed
(2026-04-27: Received notice of Senate conferees (Sen. Com. No. 761).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill bans foreign nationals, foreign corporations, and “foreign-influenced” businesses (companies with certain foreign owners or control) from making campaign contributions, independent spending, election ads, or donations designated for elections in Hawaii. It requires any for‑profit business that gives or spends in a state election to file a sworn statement saying it was not a foreign corporation or foreign‑influenced business when the money was provided. Noncandidate groups running only independent ads must get sworn certifications from their top donors that funds did not come from foreign sources, and cargo carriers covered by the Merchant Marine Act are exempt.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Prohibits foreign nationals, foreign corporations, and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Requires every for-profit business entity that contributes or expends funds in a state election to certify that the entity was not a foreign corporation or foreign-influenced business entity when the contribution or expenditure was made. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that no funds were derived from foreign nationals, foreign corporations, or foreign-influenced business entities. Exempts entities engaged in transporting cargo and subject to section 27 of the Merchant Marine Act of 1920. Effective 7/1/3000. (HD2)
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Allows every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that no funds were derived from foreign entities or foreign-influenced business entities. Effective 7/1/3000. (HD1)
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Allows every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement. (SD2)
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Requires every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement. (SD1)
Amends the prohibition against foreign nationals and foreign corporations making campaign finance contributions and expenditures. Requires every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
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THE SENATE |
S.B. NO. |
1032 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the United States government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns to undermine democratic institutions, as set forth in the joint statement "Combating Foreign Influence in United States Elections", issued by the Office of the Director of National Intelligence, United States Department of Justice, Federal Bureau of Investigation (FBI), and United States Department of Homeland Security on October 19, 2018. The FBI has also concluded that foreign-influenced activities include "criminal efforts to suppress voting and provide illegal campaign financing", as set forth in FBI Director Christopher Wray's press briefing on election security on August 2, 2018.
The legislature also finds that the United States Congress recognized the need to protect American elections from foreign influence through the ban on contributions and expenditures by foreign nationals imposed by title 52 United States Code section 30121, upheld in Bluman v. Federal Election Commission, 800 F.Supp.2d 281 (D.D.C. 2011), summarily affirmed, 565 U.S. 1104 (2012). Several states, including Hawaii, have enacted similar laws that ban foreign nationals from making contributions or expenditures in connection with state or local elections.
The legislature further finds that former President Barack Obama warned of foreign corporate spending in state elections. Political spending by foreign entities can weaken, interfere with, or disrupt a state's democratic self-government and the trust that the electorate has in its elected representatives. In the State, both foreign nationals and foreign corporations are prohibited from making contributions or expenditures to or on behalf of a candidate, candidate committee, or noncandidate committee. However, more can be done to protect the integrity of the State's democratic self-government from foreign entities that seek to influence state elections through political spending.
The purpose of this Act is to protect the State's democratic self-governance by:
(1) Prohibiting foreign nationals, foreign corporations, and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Requiring every for-profit business entity that contributes or expends funds in a state election to certify that the entity was not a foreign corporation or foreign-influenced business entity when the contribution or expenditure was made; provided that entities engaged in transporting cargo and subject to section 27 of the Merchant Marine Act of 1920 (46 U.S.C. 55102) are exempt from this requirement;
(3) Specifying that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the campaign spending commission is required to establish revised conditions that are constitutional; and
(4) Requiring noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that none of the funds contributed were derived from foreign nationals, foreign corporations, or foreign-influenced business entities.
SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Business entity" means a for-profit corporation, company, limited liability company, limited partnership, business trust, or business association, or other similar for-profit business entity.
"Foreign-influenced business entity" means a business entity that meets at least one of the following conditions:
(1) A single foreign investor holds, owns, controls, or otherwise has direct or indirect beneficial ownership of one per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity and the foreign investor exercises control over, or has the ability to direct, the business entity's election-related spending;
(2) Six or more foreign investors, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of five per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity and the foreign investors, acting individually or collectively, exercise control over, or have the ability to direct, the business entity's election-related spending; or
(3) A foreign investor participates directly or indirectly in the business entity's decision-making process with respect to the business entity's political activities in the United States.
"Foreign investor" means a person or entity that:
(1) Holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a business entity; and
(2) Is:
(A) A government or subdivision of a foreign country;
(B) A foreign political party;
(C) An individual outside the United States who is not a citizen of the United States or a national of the United States and who is not lawfully admitted for permanent residence; or
(D) A business entity:
(i) That is organized under the laws of or having its principal place of business in a foreign country; or
(ii) In which a person or entity described in subparagraph (A), (B), or (C) holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity, voting shares, membership units, or other applicable ownership interests of the business entity in an amount that is equal to or greater than fifty per cent of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity."
SECTION 3. Section 11-356, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-356[]] Contributions and expenditures by a
foreign national [or], foreign corporation, or
foreign-influenced business entity; prohibited. (a) [Except
as provided in subsection (b), no] No contributions or expenditures
shall be made to or on behalf of a candidate, candidate committee, or
noncandidate committee[,] by a foreign national [or],
foreign corporation, or foreign-influenced business entity, including a
domestic subsidiary of a foreign corporation, [a] domestic corporation
that is owned by a foreign national, or [a] local subsidiary where
administrative control is retained by the foreign corporation[, and in the
same manner prohibited under 2 United States Code section 441e and 11 Code of
Federal Regulations section 110.20, as amended.
(b) A foreign-owned domestic corporation may make
contributions if:
(1) Foreign national individuals do not
participate in election-related activities, including decisions concerning
contributions or the administration of a candidate committee or noncandidate
committee; or
(2) The contributions are
domestically-derived].
(b) No independent expenditures or electioneering communications shall be made by a foreign national, foreign corporation, or foreign-influenced business entity.
(c) No contribution or donation shall be made to any person by a foreign national, foreign corporation, or foreign‑influenced business entity if the contribution or donation is earmarked for the recipient to make a campaign finance contribution or expenditure, including independent expenditure or electioneering communication.
(d) Within seven calendar days, a business entity that makes a contribution or expenditure, including an independent expenditure or electioneering communication, shall file with the commission a statement of certification, signed under oath as defined in, and on a form as described in, section 710-1000, by the business entity's chief executive officer avowing under penalty of law that, after due inquiry, the business entity was not a foreign corporation or foreign-influenced business entity on the date the contribution or expenditure was made.
(e) If a business entity intends to make more than one contribution to or expenditure on behalf of a candidate, candidate committee, or noncandidate committee, including independent expenditures or electioneering communications, within an election cycle, that business entity may, within seven days after making its first contribution or expenditure of an election cycle, file with the commission a statement of certification, signed under oath as defined in, and on a form as described in, section 710-1000, by the business entity's chief executive officer avowing under penalty of law that:
(1) After due inquiry, the business entity was not a foreign corporation or foreign-influenced business entity on the date that any contribution or expenditure was made;
(2) The business entity will conduct due inquiry before any future contribution or expenditure to determine if the business entity has become a foreign corporation or foreign-influenced business entity; and
(3) Any future contribution or expenditure shall only be made if the business entity determines, after due inquiry, that the business entity is not a foreign corporation or foreign‑influenced business entity.
(f) If a business entity does not file a certificate with the campaign spending commission that complies with subsection (e), then the business entity shall file a certificate that complies with subsection (d) within seven days after each contribution or expenditure, including any independent expenditure or electioneering communication.
(g) If a business entity files a certificate in compliance with subsection (e) during an election cycle and later in that same election cycle determines that the business entity has become a foreign corporation or foreign-influenced business entity, the business entity shall, within seven days of that determination, file with the commission a statement, signed under oath as defined in, and on a form as described in, section 710-1000, by the business entity's chief executive officer avowing under penalty of law that the business entity has become a foreign corporation or foreign-influenced business entity.
(h) For the purposes of certification under subsections (d) and (e), the business entity shall ascertain beneficial ownership in a manner:
(1) Consistent with the Hawaii Business Corporation Act, chapter 414; or
(2) If the business entity is registered on a national securities exchange, as set forth in title 17 Code of Federal Regulations sections 240.13d-3 and 240.13d-5.
(i) If the conditions that determine whether a business entity qualifies as a foreign-influenced business entity pursuant to section 11-302 are held to be unconstitutional by a binding final judgment of court, inclusive of all appeals, the commission shall establish revised conditions that are constitutional and further the State's interest as set forth in Act , Session Laws of Hawaii 2026; provided that the revised conditions shall be relied upon by business entities in determining whether they are foreign-influenced business entities pursuant to this section.
(j) A contribution made by a foreign national, foreign corporation, or foreign-influenced business entity, or a contribution made by any entity that received funds from a foreign national, foreign corporation, or foreign-influenced business entity in violation of subsection (c), shall escheat to the Hawaii election campaign fund.
(k) This section shall not apply to entities engaged in transporting cargo and subject to section 27 of the Merchant Marine Act of 1920 (46 U.S.C. 55102).
(l) For the purposes of this section:
"Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.
"Earmarked" means a designation or instruction, whether direct or indirect, express or implied, oral or written, that results in all or any part of the contribution or donation being expended in a manner that would be prohibited by this section if made by a foreign national, foreign corporation, or foreign‑influenced business entity."
SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:
"§11-393
Identification of certain top contributors to noncandidate committees
making only independent expenditures. (a) An advertisement shall contain an additional
notice in a prominent location immediately after or below the notices required
by section 11-391, if the advertisement is broadcast, televised, circulated, or
published, including by electronic means, and is paid for by a noncandidate
committee that certifies to the commission that it makes only independent
expenditures. [This] The additional
notice shall start with the words, "The three top contributors for this
advertisement are", followed by the names of the three top contributors[,
as defined in subsection (e),] who made the highest aggregate contributions
to the noncandidate committee for the purpose of funding the advertisement;
provided that:
(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
(b) If a noncandidate committee has more than
three top contributors who contributed in equal amounts, the noncandidate
committee may select which of the top contributors to identify in the
advertisement; provided that the top contributors not identified in the
advertisement did not make a higher aggregate contribution than [those] the
top contributors who are identified in the advertisement. The additional notice required for
noncandidate committees described under this subsection shall start with the words,
"Three of the top contributors for this advertisement are" or "Three
of the top contributors to this noncandidate committee are", as
appropriate, followed by the names of the three top contributors.
(c) This section shall not apply to
advertisements broadcast by radio or television of [such] short duration
[that including] for which the inclusion of a list of top
contributors in the advertisement would constitute a hardship to the
noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to
all other requirements under this part regardless of whether a hardship exists
pursuant to this subsection. The
commission shall adopt rules pursuant to chapter 91 to establish criteria to
determine when including a list of top contributors in an advertisement of
short duration constitutes a hardship to a noncandidate committee under this
subsection.
(d) A noncandidate committee shall obtain a statement of certification, signed under oath as defined in, and on a form as described in, section 710-1000, from each top contributor required to be listed in an advertisement pursuant to this section avowing under penalty of law that, after due inquiry, none of the funds contributed by the top contributor were derived from a foreign national, foreign corporation, or foreign-influenced business entity. If a noncandidate committee does not receive a statement of certification from a top contributor, the advertisement shall include the following statement: "The following top contributor(s) did not provide certification regarding foreign influence". A noncandidate committee may rely on a statement of certification provided by a top contributor unless the noncandidate committee has actual knowledge that the statement of certification is false.
[(d)]
(e) Any noncandidate committee
that violates this section shall be subject to a minimum fine of $1,000 per
violation.
[(e)]
(f) For the purposes of
this section, "top contributor" means a contributor who has
contributed an aggregate amount of $10,000 or more to a noncandidate committee
within a twelve-month period before the purchase of an advertisement."
SECTION 5. Nothing in this Act shall be construed to diminish or infringe upon any right protected under the First Amendment of the Constitution of the United States or conflict with any federal statute or regulation.
SECTION 6. 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.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION
8. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION 9. This Act shall take effect on July 1, 3000.
Report Title:
CSC; Campaign Finance; Foreign Nationals; Foreign Corporations; Foreign-Influenced Business Entities; Exemption; Cargo Carriers
Description:
Prohibits foreign nationals, foreign corporations, and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Requires every for-profit business entity that contributes or expends funds in a state election to certify that the entity was not a foreign corporation or foreign-influenced business entity when the contribution or expenditure was made. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that no funds were derived from foreign nationals, foreign corporations, or foreign-influenced business entities. Exempts entities engaged in transporting cargo and subject to section 27 of the Merchant Marine Act of 1920. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
1032 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the United States government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns to undermine democratic institutions, as set forth in the joint statement "Combating Foreign Influence in United States Elections", issued by the Office of the Director of National Intelligence, United States Department of Justice, Federal Bureau of Investigation (FBI), and United States Department of Homeland Security on October 19, 2018. The FBI has also concluded that foreign-influenced activities include "criminal efforts to suppress voting and provide illegal campaign financing", as set forth in FBI Director Christopher Wray's press briefing on election security on August 2, 2018.
The legislature also finds that the United States Congress recognized the need to protect American elections from foreign influence through the ban on contributions and expenditures by foreign nationals imposed by title 52 United States Code section 30121, upheld in Bluman v. Federal Election Commission, 800 F.Supp.2d 281 (D.D.C. 2011), summarily affirmed, 565 U.S. 1104 (2012). Several states, including Hawaii, have enacted similar laws that ban foreign nationals from making contributions or expenditures in connection with state or local elections.
The legislature further finds that former President Barack Obama warned of foreign corporate spending in state elections. Political spending by foreign entities can weaken, interfere with, or disrupt a state's democratic self-government and the trust that the electorate has in its elected representatives. In Hawaii, both foreign nationals and foreign corporations are prohibited from making contributions or expenditures to or on behalf of a candidate, candidate committee, or noncandidate committee. However, more can be done to protect the integrity of Hawaii's democratic self-government from foreign entities that seek to influence Hawaii's elections through political spending.
The purpose of this Act is to protect the State's democratic self-governance by:
(1) Prohibiting foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Allowing every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle;
(3) Specifying that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the campaign spending commission is required to establish revised conditions that are constitutional; and
(4) Requiring noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that none of the funds contributed were derived from foreign entities or foreign-influenced business entities.
SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Business entity" means a for-profit corporation, company, limited liability company, limited partnership, business trust, or business association, or other similar for-profit business entity.
"Foreign-influenced business entity" means a business entity that meets at least one of the following conditions:
(1) A single foreign investor holds, owns, controls, or otherwise has direct or indirect beneficial ownership of one per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity;
(2) Six or more foreign investors, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of five per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity; or
(3) A foreign investor participates directly or indirectly in the business entity's decision-making process with respect to the business entity's political activities in the United States.
"Foreign investor" means a person or entity that:
(1) Holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a business entity; and
(2) Is:
(A) A government of a foreign country;
(B) A foreign political party;
(C) An individual outside the United States who is not a citizen of the United States or a national of the United States and who is not lawfully admitted for permanent residence; or
(D) A business entity:
(i) That is organized under the laws of or having its principal place of business in a foreign country; or
(ii) In which a person or entity described in subparagraph (A), (B), or (C) holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity, voting shares, membership units, or other applicable ownership interests of the business entity in an amount that is equal to or greater than fifty per cent of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity."
SECTION 3. Section 11-356, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-356[]] Contributions and expenditures by a
foreign national [or], foreign corporation, or
foreign-influenced business entity; prohibited. (a) [Except
as provided in subsection (b), no] No contributions or expenditures
shall be made to or on behalf of a candidate, candidate committee, or
noncandidate committee[,] by a foreign national [or],
foreign corporation, or foreign-influenced business entity, including a
domestic subsidiary of a foreign corporation, [a] domestic corporation
that is owned by a foreign national, or [a] local subsidiary where
administrative control is retained by the foreign corporation[, and in the
same manner prohibited under 2 United States Code section 441e and 11 Code of
Federal Regulations section 110.20, as amended.
(b) A foreign-owned domestic corporation may make
contributions if:
(1) Foreign national individuals do not
participate in election-related activities, including decisions concerning
contributions or the administration of a candidate committee or noncandidate
committee; or
(2) The contributions are
domestically-derived].
(b) No independent expenditures or electioneering communications shall be made by a foreign national, foreign corporation, or foreign-influenced business entity.
(c) No contribution or donation shall be made to any person by a foreign national, foreign corporation, or foreign‑influenced business entity if the contribution or donation is earmarked for the recipient to make a campaign finance contribution or expenditure, including independent expenditure or electioneering communication.
(d) If a business entity intends to make contributions to or expenditures on behalf of a candidate, candidate committee, or noncandidate committee, including independent expenditures or electioneering communications, within an election cycle, that business entity may, within seven days after making its first contribution or expenditure of an election cycle, file with the commission a statement of certification signed by the business entity's chief executive officer avowing under penalty of perjury that:
(1) After due inquiry, the business entity was not a foreign corporation or foreign-influenced business entity on the date the contribution or expenditure was made;
(2) The business entity will conduct due inquiry before any future contribution or expenditure to determine if the business entity has become a foreign corporation or foreign-influenced business entity; and
(3) Any future contribution or expenditure shall only be made if the commission determines, after due inquiry, that the business entity is not a foreign corporation or foreign‑influenced business entity.
(e) For the purposes of certification under subsection (d), the business entity shall ascertain beneficial ownership in a manner:
(1) Consistent with the Hawaii Business Corporation Act, chapter 414; or
(2) If it is registered on a national securities exchange, as set forth in title 17 Code of Federal Regulations sections 240.13d-3 and 240.13d-5.
The business entity shall provide a copy of the statement of certification required pursuant to subsection (d) to any candidate or committee to which it contributes and, upon request of the recipient, to any other person to which it contributes.
(f) If the conditions that determine whether a business entity qualifies as a foreign-influenced business entity pursuant to section 11-302 are held to be unconstitutional by a binding final judgment of court, inclusive of all appeals, the commission shall establish revised conditions that are constitutional and further the State's interest as set forth in Act , Session Laws of Hawaii 2025; provided that the revised conditions shall be relied upon by business entities in determining whether they are foreign-influenced business entities pursuant to this section.
(g) A contribution made by a foreign national, foreign corporation, or foreign-influenced business entity shall escheat to the Hawaii election campaign fund.
(h) For the purposes of this section:
"Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.
"Earmarked" means a designation or instruction, whether direct or indirect, express or implied, oral or written, that results in all or any part of the contribution or donation being expended in a manner that would be prohibited by this section if made by a foreign national, foreign corporation, or foreign‑influenced business entity."
SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:
"§11-393
Identification of certain top contributors to noncandidate committees
making only independent expenditures. (a) An advertisement shall contain an additional
notice in a prominent location immediately after or below the notices required
by section 11-391, if the advertisement is broadcast, televised, circulated, or
published, including by electronic means, and is paid for by a noncandidate
committee that certifies to the commission that it makes only independent
expenditures. This additional notice
shall start with the words, "The three top contributors for this
advertisement are", followed by the names of the three top contributors[,
as defined in subsection (e),] who made the highest aggregate contributions
to the noncandidate committee for the purpose of funding the advertisement;
provided that:
(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.
(c) This section shall not apply to
advertisements broadcast by radio or television of [such] short duration
that including a list of top contributors in the advertisement would constitute
a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to
all other requirements under this part regardless of whether a hardship exists
pursuant to this subsection. The
commission shall adopt rules pursuant to chapter 91 to establish criteria to
determine when including a list of top contributors in an advertisement of
short duration constitutes a hardship to a noncandidate committee under this
subsection.
(d) A noncandidate committee shall obtain a statement of certification, signed under oath as defined in, and on a form as described in, section 710-1000, from each top contributor required to be listed in an advertisement pursuant to this section avowing under penalty of law that, after due inquiry, none of the funds contributed by the top contributor were derived from a foreign national, foreign corporation, or foreign-influenced business entity. If a noncandidate committee does not receive a statement of certification from a top contributor, the advertisement shall include the following statement: "Some of the funds used to pay for this message may have been provided by foreign corporations or foreign-influenced business entities". A noncandidate committee may rely on a statement of certification provided by a top contributor unless the noncandidate committee has actual knowledge that the statement of certification is false.
[(d)]
(e) Any noncandidate committee
that violates this section shall be subject to a minimum fine of $1,000 per
violation.
[(e)]
(f) For purposes of this section,
"top contributor" means a contributor who has contributed an
aggregate amount of $10,000 or more to a noncandidate committee within a twelve‑month
period before the purchase of an advertisement."
SECTION 5. Nothing in this Act shall be construed to diminish or infringe upon any right protected under the First Amendment of the Constitution of the United States or conflict with any federal statute or regulation.
SECTION 6. 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.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 3000.
Report Title:
CSC; Campaign Finance; Foreign Entities; Foreign-influenced Business Entities
Description:
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Allows every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that no funds were derived from foreign entities or foreign-influenced business entities. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1032 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the United States government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns to undermine democratic institutions, as set forth in the joint statement "Combating Foreign Influence in United States Elections", issued by the Office of the Director of National Intelligence, United States Department of Justice, Federal Bureau of Investigation (FBI), and United States Department of Homeland Security on October 19, 2018. The FBI has concluded that foreign-influenced activities include "criminal efforts to suppress voting and provide illegal campaign financing", as set forth in FBI Director Christopher Wray's press briefing on election security on August 2, 2018.
The legislature also finds that the United States Congress and the United States Supreme Court recognize the need to protect American elections from foreign influence through the ban on contributions and expenditures by foreign nationals imposed by title 52 United States Code section 30121, upheld by the Supreme Court in Bluman v. Federal Election Commission, 800 F.Supp.2d 281 (D.D.C. 2011), affirmed, 565 U.S. 1104 (2012). Several states, including Hawaii, have enacted similar laws that ban foreign nationals from making contributions or expenditures in connection with state or local elections.
The legislature further finds that former President Barack Obama warned of foreign corporate spending in state elections. Political spending by foreign entities can weaken, interfere with, or disrupt a state's democratic self-government and the trust that the electorate has in its elected representatives. In Hawaii, both foreign nationals and foreign corporations are prohibited from making contributions or expenditures to or on behalf of a candidate, candidate committee, or noncandidate committee. However, more can be done to protect the integrity of Hawaii's democratic self-government from foreign entities that seek to influence Hawaii's elections through political spending.
The purpose of this Act is to protect the State's democratic self-governance by:
(1) Prohibiting foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Allowing every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle;
(3) Specifying that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the campaign spending commission is required to establish revised conditions that are constitutional; and
(4) Requiring noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Business entity" means a for-profit corporation, company, limited liability company, limited partnership, business trust, business association, or other similar for-profit business entity.
"Foreign-influenced business entity" means a business entity that meets at least one of the following conditions:
(1) A single foreign investor holds, owns, controls, or otherwise has direct or indirect beneficial ownership of one per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity;
(2) Two or more foreign investors, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of five per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity; or
(3) A foreign investor participates directly or indirectly in the business entity's decision-making process with respect to the business entity's political activities in the United States.
"Foreign investor" means a person or entity that:
(1) Holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a business entity; and
(2) Is:
(A) A government of a foreign country;
(B) A foreign political party;
(C) An individual outside the United States who is not a citizen of the United States or a national of the United States and who is not lawfully admitted for permanent residence; or
(D) A business entity:
(i) That is organized under the laws of or having its principal place of business in a foreign country; or
(ii) In which a person or entity described in subparagraph (A), (B), or (C) holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity, voting shares, membership units, or other applicable ownership interests of the business entity in an amount that is equal to or greater than fifty per cent of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity."
SECTION 3. Section 11-356, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-356[]] Contributions and expenditures by a
foreign national [or], foreign corporation, or foreign-influenced
business entity; prohibited.
(a) [Except as provided in
subsection (b), no] No contributions or expenditures shall be made
to or on behalf of a candidate, candidate committee, or noncandidate committee[,]
by a foreign national [or], foreign corporation, or foreign-influenced
business entity, including a domestic subsidiary of a foreign corporation, [a]
domestic corporation that is owned by a foreign national, or [a] local
subsidiary where administrative control is retained by the foreign corporation[,
and in the same manner prohibited under 2 United States Code section 441e and
11 Code of Federal Regulations section 110.20, as amended.
(b) A foreign-owned domestic corporation may make
contributions if:
(1) Foreign national individuals do not
participate in election-related activities, including decisions concerning
contributions or the administration of a candidate committee or noncandidate
committee; or
(2) The contributions are
domestically-derived].
(b) No independent expenditures or electioneering communications shall be made by a foreign national, foreign corporation, or foreign-influenced business entity.
(c) No contribution or donation shall be made to any person by a foreign national, foreign corporation, or foreign‑influenced business entity if the contribution or donation is earmarked for the recipient to make a campaign finance contribution or expenditure, including independent expenditure or electioneering communication.
(d) If a business entity intends to make contributions to or expenditures on behalf of a candidate, candidate committee, or noncandidate committee, including independent expenditures or electioneering communications within an election cycle, that business entity may, within seven days after making its first contribution or expenditure of an election cycle, file with the commission a statement of certification signed by the business entity's chief executive officer avowing under penalty of perjury that:
(1) After due inquiry, the business entity was not a foreign corporation or foreign-influenced business entity on the date the contribution or expenditure was made;
(2) The business entity will conduct due inquiry before any future contribution or expenditure to determine if the business entity has become a foreign corporate or foreign-influenced business entity; and
(3) Any future contribution or expenditure shall only be made if the commission determines, after due inquiry, that the entity is not a foreign corporate or foreign‑influenced business entity.
(e) For the purposes of certification under subsection (d), the business entity shall ascertain beneficial ownership in a manner:
(1) Consistent with the Hawaii Business Corporation Act; or
(2) If it is registered on a national securities exchange, as set forth in title 17 Code of Federal Regulations sections 240.13d-3 and 240.13d-5.
The business entity shall provide a copy of the statement of certification required pursuant to subsection (d) to any candidate or committee to which it contributes and, upon request of the recipient, to any other person to which it contributes.
(f) If the conditions that determine whether a business entity qualify as a foreign-influenced business entity pursuant to section 11-302 are held to be unconstitutional by a binding final judgment of court, inclusive of all appeals, the commission shall establish revised conditions that are constitutional and further the State's interest as set forth in Act , Session Laws of Hawaii 2025; provided that the revised conditions shall be relied upon by business entities in determining whether they are foreign-influenced business entities pursuant to section 11-356.
(g) For the purposes of this section:
"Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.
"Earmarked" means a designation or instruction, whether direct or indirect, express or implied, oral or written, that results in all or any part of the contribution or donation being expended in a manner that would be prohibited by this section if made by a foreign national, foreign corporation, or foreign‑influenced business entity."
SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:
"§11-393
Identification of certain top contributors to noncandidate committees
making only independent expenditures. (a) An advertisement shall contain an additional
notice in a prominent location immediately after or below the notices required
by section 11-391, if the advertisement is broadcast, televised, circulated, or
published, including by electronic means, and is paid for by a noncandidate
committee that certifies to the commission that it makes only independent
expenditures. This additional notice
shall start with the words, "The three top contributors for this
advertisement are", followed by the names of the three top contributors[,
as defined in subsection (e),] who made the highest aggregate contributions
to the noncandidate committee for the purpose of funding the advertisement;
provided that:
(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.
(c) This section shall not apply to
advertisements broadcast by radio or television of [such] short duration
that including a list of top contributors in the advertisement would constitute
a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to
all other requirements under this part regardless of whether a hardship exists
pursuant to this subsection. The
commission shall adopt rules pursuant to chapter 91 to establish criteria to
determine when including a list of top contributors in an advertisement of
short duration constitutes a hardship to a noncandidate committee under this
subsection.
(d) A noncandidate committee shall obtain a statement of certification from each top contributor required to be listed in an advertisement pursuant to this section avowing under penalty of perjury that, after due inquiry, none of the funds contributed by the top contributor were derived from a foreign corporation or foreign-influenced business entity. If a noncandidate committee does not receive a statement of certification from a top contributor, the advertisement shall include the following statement: "Some of the funds used to pay for this message may have been provided by foreign corporations or foreign-influenced business entities". A noncandidate committee may rely on a statement of certification provided by a top contributor unless the noncandidate committee has actual knowledge that the statement of certification is false.
[(d)]
(e) Any noncandidate committee
that violates this section shall be subject to a minimum fine of $1,000 per
violation.
[(e)]
(f) For purposes of this section,
"top contributor" means a contributor who has contributed an
aggregate amount of $10,000 or more to a noncandidate committee within a twelve‑month
period before the purchase of an advertisement."
SECTION 5. Nothing in this Act shall be construed to diminish or infringe upon any right protected under the First Amendment of the Constitution of the United States or conflict with any federal statute or regulation.
SECTION 6. 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.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2025.
Report Title:
Campaign Finance; Foreign Corporations; Foreign Nationals
Description:
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Allows every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle. Specifies that if the conditions that determine whether a business entity qualifies as a foreign‑influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1032 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the United States government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns to undermine democratic institutions, as set forth in the joint statement "Combating Foreign Influence in United States Elections", issued by the Office of the Director of National Intelligence, United States Department of Justice, Federal Bureau of Investigation (FBI), and United States Department of Homeland Security on October 19, 2018. The FBI has concluded that foreign-influenced activities include "criminal efforts to suppress voting and provide illegal campaign financing", as set forth in FBI Director Christopher Wray's press briefing on election security on August 2, 2018.
The legislature also finds that the United States Congress and the United States Supreme Court recognize the need to protect American elections from foreign influence through the ban on contributions and expenditures by foreign nationals imposed by title 52 United States Code section 30121, upheld by the Supreme Court in Bluman v. Federal Election Commission, 800 F.Supp.2d 281 (D.D.C. 2011), affirmed, 565 U.S. 1104 (2012). Several states, including Hawaii, have enacted similar laws that ban foreign nationals from making contributions or expenditures in connection with state or local elections.
The legislature further finds that former President Barack Obama warned of foreign corporate spending in state elections. Political spending by foreign entities can weaken, interfere with, or disrupt a state's democratic self-government and the trust that the electorate has in its elected representatives. In Hawaii, both foreign nationals and foreign corporations are prohibited from making contributions or expenditures to or on behalf of a candidate, candidate committee, or noncandidate committee. However, more can be done to protect the integrity of Hawaii's democratic self-government from foreign entities that seek to influence Hawaii's elections through political spending.
The purpose of this Act is to protect the State's democratic self-governance by:
(1) Prohibiting foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Requiring every business entity that contributes or expends funds in an election to file a statement of certification regarding its status as a foreign corporation or foreign-influenced business entity; and
(3) Requiring noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Business entity" means a for-profit corporation, company, limited liability company, limited partnership, business trust, business association, or other similar for-profit business entity.
"Foreign-influenced business entity" means a business entity that meets at least one of the following conditions:
(1) A single foreign investor holds, owns, controls, or otherwise has direct or indirect beneficial ownership of one per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity;
(2) Two or more foreign investors, in aggregate, hold, own, control, or otherwise have direct or indirect beneficial ownership of five per cent or more of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity; or
(3) A foreign investor participates directly or indirectly in the business entity's decision-making process with respect to the business entity's political activities in the United States.
"Foreign investor" means a person or entity that:
(1) Holds, owns, controls, or otherwise has direct or indirect beneficial ownership of equity, outstanding voting shares, membership units, or other applicable ownership interests of a business entity; and
(2) Is:
(A) A government of a foreign country;
(B) A foreign political party;
(C) An individual outside the United States who is not a citizen of the United States or a national of the United States and who is not lawfully admitted for permanent residence; or
(D) A business entity that:
(i) Is organized under the laws of or having its principal place of business in a foreign country; or
(ii) In which a person or entity described in subparagraph (A), (B), or (C) holds, owns, controls, or otherwise has directly or indirectly acquired a beneficial ownership of equity, voting shares, membership units, or other applicable ownership interests of the business entity in an amount that is equal to or greater than fifty per cent of the total equity, outstanding voting shares, membership units, or other applicable ownership interests of the business entity."
SECTION 3. Section 11-356, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-356[]] Contributions and expenditures by a
foreign national [or], foreign corporation, or
foreign-influenced business entity; prohibited. (a) [Except
as provided in subsection (b), no] No contributions or expenditures
shall be made to or on behalf of a candidate, candidate committee, or
noncandidate committee[,] by a foreign national [or], foreign
corporation, or foreign-influenced business entity, including a domestic
subsidiary of a foreign corporation, [a] domestic corporation that is
owned by a foreign national, or [a] local subsidiary where
administrative control is retained by the foreign corporation[, and in the
same manner prohibited under 2 United States Code section 441e and 11 Code of
Federal Regulations section 110.20, as amended.
(b) A foreign-owned domestic corporation may make
contributions if:
(1) Foreign national individuals do not
participate in election-related activities, including decisions concerning
contributions or the administration of a candidate committee or noncandidate
committee; or
(2) The contributions are
domestically-derived].
(b) No independent expenditures or electioneering communications shall be made by a foreign national, foreign corporation, or foreign-influenced business entity.
(c) No contribution or donation shall be made to any person by a foreign national, foreign corporation, or foreign‑influenced business entity if the contribution or donation is earmarked for the recipient to make a campaign finance contribution or expenditure, including independent expenditure or electioneering communication.
(d) Every business entity that contributes to or makes an expenditure on behalf of a candidate, candidate committee, or noncandidate committee, including an independent expenditure or electioneering communication, shall, within seven business days after making the contribution or expenditure, file with the commission a statement of certification signed by the business entity's chief executive officer avowing under penalty of perjury that, after due inquiry, the business entity was not a foreign corporation or foreign-influenced business entity on the date the contribution or expenditure was made. For purposes of this certification, the business entity shall ascertain beneficial ownership in a manner consistent with the Hawaii Business Corporation Act or, if it is registered on a national securities exchange, as set forth in title 17 Code of Federal Regulations sections 240.13d-3 and 240.13d-5. The business entity shall provide a copy of the statement of certification to any candidate or committee to which it contributes and, upon request of the recipient, to any other person to which it contributes.
(e) For the purposes of this section:
"Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.
"Earmarked" means a designation or instruction, whether direct or indirect, express or implied, oral or written, that results in all or any part of the contribution or donation being expended in a manner that would be prohibited by this section if made by the foreign national, foreign corporation, or foreign‑influenced business entity."
SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:
"§11-393
Identification of certain top contributors to noncandidate committees
making only independent expenditures. (a) An advertisement shall contain an additional
notice in a prominent location immediately after or below the notices required
by section 11-391, if the advertisement is broadcast, televised, circulated, or
published, including by electronic means, and is paid for by a noncandidate
committee that certifies to the commission that it makes only independent
expenditures. This additional notice shall
start with the words, "The three top contributors for this advertisement
are", followed by the names of the three top contributors[, as defined
in subsection (e),] who made the highest aggregate contributions to the
noncandidate committee for the purpose of funding the advertisement; provided
that:
(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.
(c) This section shall not apply to
advertisements broadcast by radio or television of [such] short duration
that including a list of top contributors in the advertisement would constitute
a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to
all other requirements under this part regardless of whether a hardship exists
pursuant to this subsection. The
commission shall adopt rules pursuant to chapter 91 to establish criteria to
determine when including a list of top contributors in an advertisement of
short duration constitutes a hardship to a noncandidate committee under this
subsection.
(d) A noncandidate committee shall obtain a statement of certification from each top contributor required to be listed in an advertisement pursuant to this section avowing under penalty of perjury that, after due inquiry, none of the funds contributed by the top contributor were derived from a foreign corporation or foreign-influenced business entity. If a noncandidate committee does not receive a statement of certification from a top contributor, the advertisement shall include the following statement: "Some of the funds used to pay for this message may have been provided by foreign corporations or foreign-influenced business entities". A noncandidate committee may rely on a statement of certification provided by a top contributor unless the noncandidate committee has actual knowledge that the statement of certification is false.
[(d)]
(e) Any noncandidate committee
that violates this section shall be subject to a minimum fine of $1,000 per
violation.
[(e)]
(f) For purposes of this section,
"top contributor" means a contributor who has contributed an
aggregate amount of $10,000 or more to a noncandidate committee within a twelve‑month
period before the purchase of an advertisement."
SECTION 5. Nothing in this Act shall be construed to diminish or infringe upon any right protected under the First Amendment of the Constitution of the United States or conflict with any federal statute or regulation.
SECTION 6. 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.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2025.
Report Title:
Campaign Finance; Foreign Corporations; Foreign Nationals
Description:
Prohibits foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes. Requires every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
1032 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO CAMPAIGN FINANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the United States government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns to undermine democratic institutions, as set forth in the joint statement "Combating Foreign Influence in United States Elections", issued by the Office of the Director of National Intelligence, United States Department of Justice, Federal Bureau of Investigation (FBI), and United States Department of Homeland Security on October 19, 2018. The FBI has concluded that foreign-influenced activities include "criminal efforts to suppress voting and provide illegal campaign financing," as set forth in FBI Director Christopher Wray's press briefing on election security on August 2, 2018.
The legislature also finds that the United States Congress and the United States Supreme Court recognize the need to protect American elections from foreign influence through the ban on contributions and expenditures by foreign nationals imposed by title 52 United States Code section 30121, upheld by the Supreme Court in Bluman v. Federal Election Commission, 800 F.Supp.2d 281 (D.D.C. 2011), affirmed, 565 U.S. 1104 (2012). Several states, including Hawaii, have enacted similar laws that ban foreign nationals from making contributions or expenditures in connection with state or local elections.
The legislature further finds that former President Barack Obama warned of foreign corporate spending in state elections. Political spending by foreign entities can weaken, interfere with, or disrupt a state's democratic self-government and the trust that the electorate has in its elected representatives. In Hawaii, both foreign nationals and foreign corporations are prohibited from making contributions or expenditures to or on behalf of a candidate, candidate committee, or noncandidate committee. However, more can be done to protect the integrity of Hawaii's democratic self-government from foreign entities that seek to influence Hawaii's elections through political spending.
The purpose of this Act is to protect the State's democratic self-governance by:
(1) Amending the prohibition against campaign finance contributions and expenditures by foreign nationals and foreign corporations;
(2) Requiring every business entity that contributes or expends funds in an election to file a statement of certification regarding its status as a foreign or domestic corporation; and
(3) Requiring noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
SECTION 2. Section 11-302, Hawaii Revised Statutes, is amended by adding one new definition to be appropriately inserted and to read as follows:
""Business entity" means a for-profit corporation, company, limited liability company, limited partnership, business trust, business association, or other similar for-profit business entity."
SECTION 3. Section 11-356, Hawaii Revised Statutes, is amended to read as follows:
"[[]§11-356[]] Contributions and expenditures by a
foreign national or foreign corporation; prohibited. (a) [Except
as provided in subsection (b), no] No contributions or expenditures
shall be made to or on behalf of a candidate, candidate committee, or
noncandidate committee[,] by a foreign national or foreign corporation, including
a domestic subsidiary of a foreign corporation, [a] domestic corporation
that is owned by a foreign national, or [a] local subsidiary where
administrative control is retained by the foreign corporation[, and in the
same manner prohibited under 2 United States Code section 441e and 11 Code of
Federal Regulations section 110.20, as amended.
(b) A foreign-owned domestic corporation may make
contributions if:
(1) Foreign national individuals do not
participate in election-related activities, including decisions concerning
contributions or the administration of a candidate committee or noncandidate
committee; or
(2) The contributions are
domestically-derived].
(b) No independent expenditures or electioneering communications shall be made by a foreign national or foreign corporation.
(c) No contribution or donation shall be made to any person by a foreign national or foreign corporation if the contribution or donation is earmarked for the recipient to make a campaign finance contribution or expenditure, including independent expenditure or electioneering communication.
(d) Every business entity that contributes to or makes an expenditure on behalf of a candidate, candidate committee, or noncandidate committee, including an independent expenditure or electioneering communication, shall, within seven business days after making the contribution or expenditure, file with the commission a statement of certification signed by the business entity's chief executive officer avowing under penalty of perjury that, after due inquiry, the business entity was not a foreign corporation on the date the contribution or expenditure was made. For purposes of this certification, the business entity shall ascertain beneficial ownership in a manner consistent with the Hawaii Business Corporation Act or, if it is registered on a national securities exchange, as set forth in title 17 Code of Federal Regulations sections 240.13d-3 and 240.13d-5. The business entity shall provide a copy of the statement of certification to any candidate or committee to which it contributes and, upon request of the recipient, to any other person to which it contributes.
(e) For the purposes of this section:
"Chief executive officer" means the highest-ranking officer or individual having authority to make decisions regarding a business entity's affairs.
"Earmarked" means a designation or instruction, whether direct or indirect, express or implied, oral or written, that results in all or any part of the contribution or donation being expended in a manner that would be prohibited by this section if made by the foreign national or foreign corporation."
SECTION 4. Section 11-393, Hawaii Revised Statutes, is amended to read as follows:
"§11-393
Identification of certain top contributors to noncandidate committees
making only independent expenditures. (a) An advertisement shall contain an additional
notice in a prominent location immediately after or below the notices required
by section 11-391, if the advertisement is broadcast, televised, circulated, or
published, including by electronic means, and is paid for by a noncandidate
committee that certifies to the commission that it makes only independent
expenditures. This additional notice
shall start with the words, "The three top contributors for this
advertisement are", followed by the names of the three top contributors[,
as defined in subsection (e),] who made the highest aggregate contributions
to the noncandidate committee for the purpose of funding the advertisement;
provided that:
(1) If a noncandidate committee is only able to identify two top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The two top contributors for this advertisement are", followed by the names of the two top contributors;
(2) If a noncandidate committee is able to identify only one top contributor who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The top contributor for this advertisement is", followed by the name of the top contributor;
(3) If a noncandidate committee is unable to identify any top contributors who made contributions for the purpose of funding the advertisement, the additional notice shall start with the words, "The three top contributors for this noncandidate committee are", followed by the names of the three top contributors who made the highest aggregate contributions to the noncandidate committee; and
(4) If there are no top contributors to the noncandidate committee, the noncandidate committee shall not be subject to this section.
In no case shall a noncandidate committee be required to identify more than three top contributors pursuant to this section.
(b) If a noncandidate committee has more than three top contributors who contributed in equal amounts, the noncandidate committee may select which of the top contributors to identify in the advertisement; provided that the top contributors not identified in the advertisement did not make a higher aggregate contribution than those top contributors who are identified in the advertisement. The additional notice required for noncandidate committees described under this subsection shall start with the words "Three of the top contributors for this advertisement are" or "Three of the top contributors to this noncandidate committee are", as appropriate, followed by the names of the three top contributors.
(c) This section shall not apply to
advertisements broadcast by radio or television of [such] short duration
that including a list of top contributors in the advertisement would constitute
a hardship to the noncandidate committee paying for the advertisement. A noncandidate committee shall be subject to
all other requirements under this part regardless of whether a hardship exists
pursuant to this subsection. The
commission shall adopt rules pursuant to chapter 91 to establish criteria to
determine when including a list of top contributors in an advertisement of
short duration constitutes a hardship to a noncandidate committee under this
subsection.
(d) A noncandidate committee shall obtain a statement of certification from each top contributor required to be listed in an advertisement pursuant to this section avowing under penalty of perjury that, after due inquiry, none of the funds contributed by the top contributor were derived from a foreign corporation. If a noncandidate committee does not receive a statement of certification from a top contributor, the advertisement shall include the following statement: "Some of the funds used to pay for this message may have been provided by foreign corporation". A noncandidate committee may rely on a statement of certification provided by a top contributor unless the noncandidate committee has actual knowledge that the statement of certification is false.
[(d)]
(e) Any noncandidate committee
that violates this section shall be subject to a minimum fine of $1,000 per
violation.
[(e)]
(f) For purposes of this section,
"top contributor" means a contributor who has contributed an
aggregate amount of $10,000 or more to a noncandidate committee within a twelve‑month
period before the purchase of an advertisement."
SECTION 5. Nothing in this Act shall be construed to diminish or infringe upon any right protected under the First Amendment of the Constitution of the United States or conflict with any federal statute or regulation.
SECTION 6. 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.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2025.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Campaign Finance; Foreign Corporations; Foreign Nationals
Description:
Amends the prohibition against foreign nationals and foreign corporations making campaign finance contributions and expenditures. Requires every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence. Requires noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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|---|---|
| Apr 27, 2026 | Received notice of Senate conferees (Sen. Com. No. 761). |
| Apr 24, 2026 | Senate Conferees Appointed: Lee, C. Chairs; Rhoads Co-Chair; Chang, DeCoite. |
| Apr 17, 2026 | Re-Referred to WLA, JDC. |
| Apr 16, 2026 | Re-Referred to WLA, JDC. |
| Apr 16, 2026 | Received notice of disagreement (Sen. Com. No. 710). |
| Apr 16, 2026 | Senate disagrees with House amendments. |
| Apr 16, 2026 | Re-Referred to TRS, JDC. |
| Apr 16, 2026 | Received from House (Hse. Com. No. 609). |
| Apr 14, 2026 | Passed Third Reading as amended in HD 2 with none voting aye with reservations; Representative(s) Alcos voting no (1) and none excused (0). Transmitted to Senate. |
| Apr 9, 2026 | Forty-eight (48) hours notice Tuesday, 04-14-26. |
| Apr 9, 2026 | Reported from FIN (Stand. Com. Rep. No. 2024-26) as amended in HD 2, recommending passage on Third Reading. |
| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Perruso, Templo, Yamashita, Reyes Oda; Ayes with reservations: Representative(s) Alcos, Gedeon; Noes: none; and 1 Excused: Representative(s) Morikawa. |
| Apr 2, 2026 | Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. |
| Apr 2, 2026 | The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. |
| Mar 31, 2026 | Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 18, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) Shimizu voting no (1) and Representative(s) Cochran, Ward excused (2). |
| Mar 18, 2025 | Reported from JHA (Stand. Com. Rep. No. 1333) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 12, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Kahaloa, Perruso, Takayama, Todd, Garcia; Ayes with reservations: none; 1 Noes: Representative(s) Shimizu; and 1 Excused: Representative(s) Cochran. |
| Mar 10, 2025 | Bill scheduled to be heard by JHA on Wednesday, 03-12-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE. |
| Mar 6, 2025 | Referred to JHA, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 241) in amended form (SD 2). |
| Mar 4, 2025 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from JDC (Stand. Com. Rep. No. 1042) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 27, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDC were as follows: 5 Aye(s): Senator(s) Rhoads, Gabbard, Chang, San Buenaventura, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 20, 2025 | The committee(s) on JDC deferred the measure until 02-27-25 10:00AM; Conference Room 016 & Videoconference. |
| Feb 18, 2025 | The committee(s) on JDC will hold a public decision making on 02-20-25 10:01AM; CR 016 & Videoconference. |
| Feb 11, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC. |
| Feb 11, 2025 | Reported from TCA (Stand. Com. Rep. No. 257) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC. |
| Jan 30, 2025 | The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in TCA were as follows: 5 Aye(s): Senator(s) Lee, C., Inouye, Elefante, Kanuha, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Jan 27, 2025 | The committee(s) on TCA has scheduled a public hearing on 01-30-25 3:00PM; Conference Room 224 & Videoconference. |
| Jan 23, 2025 | Referred to TCA, JDC. |
| Jan 21, 2025 | Passed First Reading. |
| Jan 17, 2025 | Introduced. |
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Date
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Description
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Location
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Votes
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|
|---|---|---|---|---|
| Apr 14, 2026 | Third Reading | House Floor |
Passed |
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| Apr 7, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
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| Mar 12, 2025 | The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Judiciary & Hawaiian Affairs |
Passed |
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 27, 2025 | The committee(s) on JDC recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Judiciary |
Passed |
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| Jan 30, 2025 | The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Transportation and Culture and the Arts |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
|
Date
|
|---|---|---|
| Campaign Spending Commission | ** Support | |
| Chamber of Sustainable Commerce | ** Support | |
| Common Cause Hawaii | ** Support | |
| Federal Election Commission | *** Support | Jan 30, 2025 |
| Free Speech for People | ** Support | |
| Global Business Alliance | ** Against | |
| Global Business Alliance | ** Against | |
| Green Party of Hawaiʻi | ** Support | |
| Harvard Law School | *** Support | Jan 30, 2025 |
| Hawaiʻi Alliance for Progressive Action (HAPA) | *** Support | Apr 2, 2026 |
| Hawaiʻi Workers Center | *** Support | Mar 12, 2025 |
| HULI PAC | *** Support | Apr 2, 2026 |
| Indivisible Hawaiʻi | *** Support | Apr 2, 2026 |
| International Longshore & Warehouse Union Hawaii | ** Support | |
| League of Women Voters of Hawaii | ** Support | |
| Our Hawaiʻi | ** Support | |
| Sierra Club of Hawaiʻi | *** Support | Mar 12, 2025 |
| Unite Here Local 5 | ** Support | |
| UNITE HERE Local 5 | *** Support | Mar 12, 2025 |
STAND. COM. REP. NO. 1333
Honolulu, Hawaii
, 2025
RE: S.B. No. 1032
S.D. 2
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Judiciary & Hawaiian Affairs, to which was referred S.B. No. 1032, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN FINANCE,"
begs leave to report as follows:
The purpose of this measure is to:
(1) Prohibit foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Allow every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle;
(3) Specify that if the conditions that determine whether a business entity qualifies as a foreign-influenced business entity are held unconstitutional by a final judgment, including all appeals, the Campaign Spending Commission is required to establish revised conditions that are constitutional; and
(4) Require noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement avowing that none of the funds contributed were derived from a foreign corporation or foreign-influenced business entity.
Your Committee received testimony in support of this measure from the Campaign Spending Commission; Free Speech For People; International Longshore & Warehouse Union Hawaii; League of Women Voters of Hawaii; Green Party of Hawaiʻi; UNITE HERE Local 5; Hawaiʻi Alliance for Progressive Action; Chamber of Sustainable Commerce; and numerous individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of the Attorney General.
Your Committee has amended this measure by:
(1) Specifying that a contribution made by a foreign national, foreign corporation, or foreign-influenced business entity shall escheat to the Hawaii Election Campaign Fund;
(2) Amending the requirements for the statement of certification from each top contributor required to be listed in an advertisement;
(3) Changing the effective date to July 1, 3000, to encourage further discussion; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1032, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1032, S.D. 2, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,
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____________________________ DAVID A. TARNAS, Chair |
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STAND. COM. REP. NO. 1042
Honolulu, Hawaii
RE: S.B. No. 1032
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred S.B. No. 1032, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN FINANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Prohibit foreign entities and foreign-influenced business entities from making contributions, expenditures, electioneering communications, or donations for election purposes;
(2) Require every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence; and
(3) Require noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
Your Committee received testimony in support of this measure from the Campaign Spending Commission, League of Women Voters of Hawaii, Common Cause Hawaii, UNITE HERE! Local 5, ILWU Hawaii, ILWU Local 142, Free Speech for People, and seven individuals.
Your Committee received testimony in opposition to this measure from Global Business Alliance.
Your Committee received comments on this measure from the Department of the Attorney General.
Your Committee finds that elections are increasingly influenced by the amount of money used by or for the benefit of certain candidates, resulting in candidates getting elected who are beholden to certain interests, including large corporations. Your Committee further finds that large corporations have far more money to spend on elections than individuals, local groups, or local businesses, resulting in a government that is under increasing pressure to legislate the interests of corporations, even when it goes against the best interests of working people in local communities. This measure will protect the State's system of self-governance from unwanted and harmful outside corporate influence.
Your Committee notes the case of Minn. Chamber of Comm. v. Choi, in which the United States District Court in the Eighth Circuit issued a preliminary injunction to block a Minnesota law that would have restricted political activities by foreign-influenced corporations in state elections.
Your Committee has amended this measure by:
(1) Deleting language that would have required every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence;
(2) Inserting language that allows every business entity that contributes or expends funds in a state election to certify that the entity is not and will not be a foreign corporation or foreign-influenced business entity if the entity intends to make contributions or expenditures within an election cycle;
(3) Specifying that if the conditions that determine whether a business entity qualifies as a foreign-influenced business entity are held unconstitutional by a final judgment, including all appeals, then the Campaign Spending Commission is required to establish revised conditions that are constitutional;
(4) Amending section 1 to reflect its amended purpose; and
(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1032, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1032, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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________________________________ KARL RHOADS, Chair |
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STAND. COM. REP. NO. 257
Honolulu, Hawaii
RE: S.B. No. 1032
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1032 entitled:
"A BILL FOR AN ACT RELATING TO CAMPAIGN FINANCE,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Amend the prohibition against foreign nationals and foreign corporations making campaign finance contributions and expenditures;
(2) Require every business entity that contributes or expends funds in a state election to file a statement of certification regarding its limited foreign influence; and
(3) Require noncandidate committees making only independent expenditures to obtain a statement of certification from each top contributor required to be listed in an advertisement.
Your Committee received testimony in support of this measure from Free Speech For People, ILWU Hawaii, ILWU Local 142, UNITE HERE! Local 5, Hawaiʻi Alliance for Progressive Action, League of Women Voters, Our Hawaiʻi, and nine individuals.
Your Committee received testimony in opposition to this measure from the Global Business Alliance.
Your Committee finds that the federal government has concluded that Russia, China, Iran, and other foreign actors are engaged in ongoing campaigns, financial, digital, and more, to undermine democratic institutions. Your Committee believes that state elections should represent the democratic values of Hawaii communities. Strengthening the prohibition of foreign interference through political spending in state and local elections is critical for the independence and self-governance of Hawaii. Accordingly, this measure will ensure the continuity of independent Hawaii elections by increasing financial transparency and regulations in the State's campaign finance statutes.
Your Committee has amended this measure by:
(1) Inserting definitions of "foreign-influenced business entity" and "foreign investor";
(2) Inserting language that prohibits any foreign-influenced business entity from making contributions, expenditures, electioneering communications, or donations for election purposes;
(3) Amending section 1 to reflect its amended purpose; and
(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1032, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1032, S.D. 1, and be referred to your Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,
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________________________________ CHRIS LEE, Chair |
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Date
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Testimony PDF
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|---|---|
| Apr 2, 2026 | SB1032_HD1_TESTIMONY_FIN_04-02-26_.PDF |
| Mar 12, 2025 | SB1032_SD2_TESTIMONY_JHA_03-12-25_.PDF |
| Feb 20, 2025 | SB1032_SD1_TESTIMONY_JDC_02-20-25_.PDF |
| Jan 30, 2025 | SB1032_TESTIMONY_TCA_01-30-25_.PDF |
Discussed in Hearing
3MIN
House Standing Committee on Judiciary & Hawaiian Affairs
1MIN
Senate Standing Committee on Transportation and Culture and the Arts
4MIN
Senate Standing Committee on Transportation and Culture and the Arts
Bill Author
Bill Co-Author(s):
