CHAPTER 111
S.P. 548 - L.D. 1666
An Act Concerning the Authority of the Secretary of State to Suspend and Revoke Licenses and Privileges to Operate in Maine
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Secretary of State has the authority to suspend and revoke the licenses and privileges of certain corporations and entities doing business in and operating under the State's motor vehicle laws when these entities are found in violation of state law; and
Whereas, the Secretary of State may not suspend or revoke licenses and privileges of corporations or entities that are newly formed from corporations and entities for which the licenses and operation privileges have been suspended by the Secretary of State for violations of state law as a means to circumvent the suspension or revocation; and
Whereas, the public health, safety and welfare is placed at risk when these corporations and entities continue to do business or operate in the State under the guise of a new corporation or entity; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 29-A MRSA §2458, sub-§5, as amended by PL 1995, c. 482, Pt. A, §27, is further amended to read:
5. Penalty. A person commits a Class E crime if that person recklessly or with criminal negligence fails upon request to disclose to the Secretary of State information required under subsection 6 or, after notice of suspension, revocation, or cancellation fails to obey an order of the Secretary of State under this section or fails to surrender to the Secretary of State on demand a license, certificate of title, certificate of registration or fuel use decal that has been suspended, revoked or cancelled by proper authority.
Sec. 2. 29-A MRSA §2458, sub-§6 is enacted to read:
6. Suspension and revocation of related entities. If the license or authority to engage in a business or commercial activity is suspended, the suspension applies to any related individual or related entity unless the requirements of paragraph C are met.
A. For the purposes of this subsection, unless the context otherwise indicates, the following terms have the following meanings.
(1) "Entity" means a corporation, firm, partnership, sole proprietorship, joint venture, association, fiduciary, trust, estate or any other legal or commercial entity.
(2) "Related entity" includes:
(a) All entities owned, operated or controlled by the person or named entity, by related individuals, by any person who is an officer or director of the named entity or by shareholders of the named entity;
(b) Any entity that has as an officer, director or partner an individual whose license or authority to engage in the business or commercial activity has been suspended;
(c) Any entity that has an officer, partner or 25% of its directors in common with the named entity; and
(d) Any entity in which 25% of the outstanding shares are owned or controlled by the suspended person or by an individual, related individual or entity who, taken together, also owned 25% or more of the outstanding shares of the named entity.
(3) "Related individual" means a spouse, parent, grandparent, sibling, child or grandchild, whether by blood or marriage, of a person whose license or authority to engage in the business or commercial activity has been suspended.
(4) "Suspension" means a suspension or revocation.
B. When the Secretary of State's suspension is based on a recommendation of the Motor Carrier Review Board, the board also shall make a recommendation on suspension of related entities.
C. If the related entity is able to satisfy the Secretary of State, by a preponderance of the evidence, that it is not, in fact, controlled by the suspended person, by related individuals, or by the named entity or its officers, partners or shareholders or that the actual operation of the related entity does not pose a risk to public safety, the Secretary of State shall exclude the related entity from the suspension.
D. The Secretary of State may require individuals and entities subject to suspension and the officers, directors and partners of those entities to disclose, under oath, the relationships between the individual or the entity, its officers, directors, partners and shareholders and those of other entities.
E. Any entity that would have been suspended as a related entity but for the failure or refusal of the suspended person or named entity or its officers, directors or partners to disclose the required information is nevertheless suspended and subject to the same penalties and sanctions as the suspended person or the named entity for violation of the suspension. If an entity becomes a related entity or is created after the Secretary of State has made the decision to suspend or after the Motor Carrier Review Board makes its recommendation to suspend, the Secretary of State may immediately suspend the related entity.
Sec. 3. Application. This Act applies to suspensions or revocations in effect on or after the effective date of this Act.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective April 18, 1997.
| Revisor of Statutes Homepage | Subject Index | Search | Laws of Maine | Maine Legislature |
