The "Rhode Island Corporate Power Reset Act" aims to redefine the legal status and powers of artificial persons, such as corporations, within Rhode Island. The bill establishes that these entities operate under conditional grants of legal status from the state, which can be modified or revoked at any time. It explicitly excludes political spending power from the privileges granted to artificial persons, with the exception of political committees, thereby seeking to protect the integrity of the political process.

Key provisions of the bill include the revocation of all previously granted political spending powers, the establishment of clear definitions regarding artificial persons and their powers, and the imposition of penalties for unauthorized political spending. This includes the forfeiture of charter privileges and the requirement for entities that engage in unauthorized political spending to return any funds spent in violation of the act.

The bill categorizes contributions from artificial persons as ultra vires, void, and unlawful, thereby prohibiting such contributions in political campaigns. It clarifies that while candidates may borrow money for campaign purposes, corporations and business entities are barred from making campaign contributions or expenditures. Additionally, any contributions made by employees of a corporation that are reimbursed will be treated as contributions from the corporation itself, thus violating the new regulations.

The act is set to take effect on January 1, 2027, representing a significant change in campaign finance regulation in Rhode Island.

Statutes affected:
2619: 17-25-10.1