Gov. Josh Green signed Senate Bill 2471 into law Thursday.
The bill was touted by supporters throughout the legislative session as a measure to stymie Citizens United v. Federal Election Commission, a 2010 U.S. Supreme Court case that found that attempting to prohibit political spending by corporations is unconstitutional.
SB 2471 — now signed into law as Act 11 — supposedly would prevent corporate spending in Hawai‘i elections by limiting the privileges granted to corporations by the state.
"Corporations and other artificial entities exist because the state grants them legal privileges, including limited liability and lucrative tax benefits that individuals cannot claim," said Sen. Jarrett Keohokalole in a statement Thursday. "Act 11 clarifies that those privileges do not include the power to spend corporate money to influence our elections.”
In theory, political action committees will continue to operate under current campaign finance laws, but will not be able to spend any money received by corporations, according to a statement by the State Senate Majority.
"We want our elections to reflect the voices and values of the people of Hawaiʻi," Green said in a statement. "This measure is intended to strengthen transparency and accountability in our campaign system and support fair elections. I thank the Hawai‘i State Legislature for its partnership and continued commitment to maintaining public trust in our democratic process.”
Throughout the legislative session, the Office of the Attorney General warned that the bill will be seen as an attempt to undermine the Citizens United verdict and will likely be susceptible to potentially costly legal challenges.
The law takes effect July 1 of next year.
