Bill > HB2130

This bill, effective January 1, 2027, aims to redefine the powers of artificial entities like corporations, limited liability companies, and partnerships in Hawaii by explicitly prohibiting them from engaging in "election activity" (spending money to support or oppose candidates, parties, or political committees) or "ballot-issue activity" (spending money to support or oppose ballot measures). The bill defines these terms and clarifies that any such expenditures by these entities are considered "ultra vires," meaning beyond their legal authority and therefore void. As a consequence, entities that engage in these prohibited activities will face administrative forfeiture of their "charter privileges," which are benefits granted by the state such as limited liability and perpetual existence, until they comply with the law and are reinstated. The bill asserts that the creation of these artificial entities is a privilege granted by the state, not a right, and that the state retains the authority to define and limit their powers, emphasizing that these limitations do not affect the rights of natural persons to engage in political speech.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2130&year=2026