SB 2829 Hawaii Senate · 2026 Regular Session

RELATING TO THE POWERS OF ARTIFICIAL PERSONS.

Summary

Prohibits any state-chartered corporation, limited liability company, limited partnership, limited liability partnership, cooperative, nonprofit, or other association from making expenditures or contributions in connection with elections or ballot measures. Deems any election or ballot measure expenditure or contribution to be ultra vires or void as a matter of law, triggering administrative forfeiture of charter privileges, including limited liability and perpetual duration, until reinstatement. Effective 1/1/2027. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 20, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2829 → SB2829_SD1 · 5 edits

MODERATE

This bill fundamentally restricts the legal powers of state-chartered entities by explicitly prohibiting them from engaging in election or ballot measure activities. Previously, such activities might have been considered 'necessary or convenient' for a corporation's lawful business; now, any such involvement is deemed ultra vires (beyond legal authority) and void. The bill introduces severe penalties, including the automatic forfeiture of charter privileges like limited liability and perpetual existence, for entities that violate this ban. It also adds a grandfather clause protecting contracts entered into before January 1, 2027, while banning new election-related activities after that date.

Scope change

The bill expands its scope by clarifying that the prohibition applies broadly to all artificial persons, including corporations, limited liability companies, partnerships, cooperatives, and nonprofit associations, regardless of their specific type or purpose.

REQUIREMENT

Added an explicit prohibition preventing any state-chartered entity from engaging in election activity or ballot-issue activity, removing the previous ambiguity that allowed such activities if deemed 'necessary or convenient'.

ENFORCEMENT

Established that any act violating the election ban is void and triggers the automatic forfeiture of all charter privileges, including limited liability and perpetual duration, as a matter of law.

TIMELINE

Included a grandfather clause that protects existing contracts and obligations validly entered into before January 1, 2027, but prohibits any new election activity after that date.

DEFINITION

Updated definitions of 'artificial-person powers' and 'charter privilege' to explicitly exclude election-related activities and clarify that these powers are conditional grants from the state, not natural rights.

FISCAL

Added legislative findings stating that the ban on electioneering by nonprofits is based on the principle that tax benefits and limited liability are privileges granted by the state, not inherent rights.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to JDC.

upper

Feb 20, 2026

Committee

Reported from CPN (Stand. Com. Rep. No. 2650) with recommendation of passage on Second Reading, as amended (SD 1) and referral to JDC.

upper

Feb 10, 2026

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Lamosao, McKelvey.

upper

Jan 30, 2026

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-03-26 9:31AM; Conference Room 229 & Videoconference.

upper

Jan 30, 2026

Committee

Referred to CPN, JDC.

upper

Jan 23, 2026

Introduced

Introduced.

upper

1 primary · 0 co-sponsors