Hawaii Senate Bill SB18

Hawaii 2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/20/23
• Report Pass: 2/10/23
• Report Pass: 3/3/23
• Refer: 2/10/23
• Engrossed: 3/7/23
• Refer: 3/9/23

Caption

Relating To Corporations.

Impact

The proposed legislation is expected to influence numerous aspects of corporate governance and electioneering in the state. By enhancing reporting requirements, SB18 seeks to deter corruption and circumvent laws concerning campaign financing. By ensuring that shareholders receive detailed information on the financial actions of their corporations, the bill reinforces the notion that shareholders should have the ability to scrutinize how their investments contribute to political activities. This could strengthen shareholder activism and encourage greater accountability from corporations.

Summary

SB18, under the Thirty-Second Legislature of Hawaii in 2023, addresses the corporate reporting obligations of domestic and foreign corporations regarding their independent expenditures and political contributions. The bill mandates that any corporation making more than $10,000 in such expenditures annually must disclose this information to their shareholders in an annual report. This requirement aims to improve transparency and ensure that shareholders are properly informed about the corporate activities that may influence the electoral landscape.

Contention

Some of the notable points of contention surrounding SB18 may arise from the balance between corporate rights and shareholder interests. Critics may argue that the bill places undue burdens on corporations by requiring comprehensive reporting on political expenditures that can be voluminous and complex. Conversely, proponents emphasize the need for transparency to uphold democratic values and prevent corporate overreach into the political system. The effectiveness of these reporting requirements in achieving their intended goals of deterring corruption and providing accountability will likely be scrutinized as the bill progresses.