A decision by a federal court is pending on whether to allow a challenge to the state's corporate election spending ban to proceed.
A lawsuit by Grassroot Institute of Hawaiʻi challenging Act 11, a law passed this year that prohibits corporations from spending money in elections, went to hearing on Tuesday. That lawsuit, which names Hawai‘i Attorney General Anne Lopez and Department of Commerce and Consumer Affairs Director Nadine Ando as plaintiffs, argues that Act 11 violates the First Amendment right of corporations to make political speech, a right upheld by the 2010 U.S. Supreme Court verdict in "Citizens United v. Federal Election Commission."
U.S. District Judge Leslie Kobayashi heard oral arguments about whether Grassroot has standing to make its suit, and whether Act 11 should be preemptively blocked before it takes effect next year.
After hearing those arguments, Kobayashi indicated that she would be inclined to allow the case to stand.
The state's position, as argued by Hawai‘i Deputy Solicitor General Ewan Rayner, suggested that Grassroot could not sufficiently prove that the nonprofit would be impacted by the law, a prerequisite to be allowed standing to challenge it. But while Rayner suggested that Grassroot's political advocacy should be considered reporting news or providing commentary — activities exempted from Act 11 — Kobayashi was unconvinced, saying that Grassroot has a known history of engaging in political questions, which should be enough to grant the nonprofit standing.
Rayner also suggested that Act 11 will not impact Grassroot's political speech, including lobbying activities. He claimed Act 11 only prohibits corporations from spending money on candidate elections or certified ballot measures.
However, Kobayashi did not issue a verdict Tuesday, nor did she indicate when she would.
Another challenge against Act 11, filed in September by the U.S. Chamber of Commerce, remains pending. The next hearing in that case is scheduled for Nov. 19.
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