HOUSE OF REPRESENTATIVES

H.B. NO.

2183

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to campaign finance.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to subpart E of part XIII to be appropriately designated and to read as follows:

     "§11-     Contributions, expenditures, and independent expenditures by corporations; shareholder approval and notices required.  (a)  No corporation shall make any contribution or expenditure to or on behalf of any candidate, candidate committee, or noncandidate committee, or make any independent expenditure, unless the shareholders of the corporation, by the affirmative vote of a majority of all votes entitled to be cast, have:

     (1)  Authorized in advance the total amount of money or property that may be used for all contributions, expenditures, and independent expenditures during a specific fiscal year of the corporation; and

     (2)  Directed that the contribution, expenditure, or independent expenditure be used for:

         (A)  Specified candidates;

         (B)  Candidates of specified political parties;

         (C)  Specified political parties;

         (D)  Specified political committees;

         (E)  Specified entities exempt from taxation under section 501(c)(4) or (6) of the Internal Revenue Code; or

         (F)  Specified questions that have been certified to appear on the ballot.

     A corporation shall include in its bylaws voting procedures that comply with the requirements of this subsection.

     (b)  The distribution of a news story, commentary, editorial, book, or documentary in the ordinary course of business by a press organization owned or controlled by a corporation shall not be considered a contribution, expenditure, or independent expenditure for the purposes of this section.

     (c)  Shareholder consideration of contributions, expenditures, and independent expenditures shall occur at an annual or special meeting of the shareholders.

     (d)  Within forty-eight hours after making any contribution, expenditure, or independent expenditure pursuant to this section, a corporation shall provide notice thereof:

     (1)  By electronic transmission to each shareholder that has requested notice; and

     (2)  On each publicly accessible website that the corporation maintains.

     (e)  Each notice provided pursuant to subsection (d)(1) or (2) shall include the following information for each contribution, expenditure, or independent expenditure:

     (1)  The amount and date of disposition;

     (2)  The recipient; and

     (3)  The purpose, including the identity of the subject candidate or ballot question and whether the contribution, expenditure, or independent expenditure was made to support or oppose the candidate or ballot question.

     (f)  The annual report of the corporation shall include a list of all contributions, expenditures, and independent expenditures made by the corporation during the reporting period, including the information required under subsection (e)."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Elections; Campaign Finance; Corporations; Shareholder Approval of Contributions and Expenditures

 

Description:

Prohibits corporations from making election contributions, expenditures, or independent expenditures except in accordance with the majority vote of the corporation's shareholders.  Requires corporations to provide notices to shareholders and on their publicly accessible websites within forty-eight hours of making a contribution, expenditure, or independent expenditure.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.