Hawaii Senate Bill SB1032

Hawaii 2025 Regular Session

• Introduced: 1/17/25
• Refer: 1/23/25
• Report Pass: 2/11/25
• Refer: 2/11/25
• Report Pass: 2/28/25
• Engrossed: 3/4/25
• Refer: 3/6/25
• Report Pass: 3/18/25
• Refer: 3/18/25

Caption

Relating To Campaign Finance.

Summary

SB1032 amends Hawaii campaign finance law to prohibit foreign nationals, foreign corporations, and newly defined “foreign-influenced business entities” from making contributions, expenditures, electioneering communications, or earmarked donations for election purposes. The bill adds definitions for “business entity,” “foreign investor,” and “foreign-influenced business entity,” using ownership thresholds and decision-making participation to determine when a company is covered. It also creates a certification process for business entities that want to participate in state election spending, allowing them to attest they are not foreign-influenced and will conduct due inquiry before future spending. The bill further changes disclosure rules for noncandidate committees that make only independent expenditures. Such committees would have to obtain certifications from top contributors stating that none of the contributed funds came from foreign entities or foreign-influenced business entities; if a certification is not obtained, the advertisement must include a warning statement. The measure also directs that prohibited contributions escheat to the Hawaii election campaign fund, and it includes a severability clause, a First Amendment/federal-law savings clause, and a fallback mechanism requiring the Campaign Spending Commission to adopt revised constitutional standards if the foreign-influenced entity definition is later struck down.

Impact

SB1032 would expand and tighten Hawaii Revised Statutes chapter 11 campaign finance restrictions by adding a new regulated category of foreign-influenced business entities and by broadening prohibitions on political spending tied to foreign ownership or control. It would amend sections 11-302, 11-356, and 11-393 to impose new compliance, certification, disclosure, and enforcement requirements on business entities, candidates, candidate committees, noncandidate committees, and advertisers. The bill also creates a new penalty-related consequence by directing prohibited contributions to the Hawaii election campaign fund and authorizes the Campaign Spending Commission to revise the law’s standards if any part is invalidated.

Sentiment

The available voting history suggests generally favorable committee sentiment toward the bill, with both recorded committee votes passing unanimously 5-0 and with amendments. The bill’s stated purpose and findings frame it as a democracy-protection and election-integrity measure aimed at preventing foreign influence in Hawaii elections. No committee transcript excerpts are provided, so the record here shows support in committee but does not reveal broader floor debate or public reaction.

Contention

The main points of contention are likely to center on the breadth of the new “foreign-influenced business entity” definition, the ownership thresholds used to trigger the ban, and the requirement that businesses and top contributors certify the foreign source of funds. Critics could argue that the bill may burden corporate political speech, create compliance challenges, or sweep in entities with limited foreign ownership or indirect influence, while supporters would emphasize the state’s interest in preventing foreign interference in elections. The bill anticipates legal challenge by including a First Amendment savings clause and a mechanism for the commission to adopt revised constitutional standards if the definition is struck down.