Sec. 4. 1 MRSA §1005, as amended by PL 1997, c. 562, Pt. D, §1 and affected by §11, is further amended to read:

§1005. Open meetings

Notwithstanding any other provision of law chapter 13 and section 1014-C, all meetings, hearings or sessions of the commission shall be are open to the general public unless, by an affirmative vote of at least 3 members, the commission requires the exclusion of the public.

Sec. 5. 1 MRSA §1008, sub-§2, as amended by IB 1995, c. 1, §3, is further amended to read:

2. Election practices. To administer and investigate any violations of the requirements for campaign reports and campaign financing, including the provisions of the Maine Clean Election Act and the Maine Clean Election Fund, and to investigate and make findings of fact and opinion on the final determination of the results, within the limits of the Constitution of Maine and the Constitution of the United States, of any contested county, state or federal election within this State;

Sec. 6. 1 MRSA §1008, sub-§6, as enacted by IB 1995, c. 1, §6, is amended to read:

6. Enhanced monitoring; source of revenue. To provide for enhanced monitoring and enforcement of election practices and to institute electronic submission of reports and computerized tracking of campaign, election and lobbying information under the commission's jurisdiction. Funds to support enhanced monitoring and computerized data collection must come from the Maine Clean Election Fund established in Title 21-A, section 1124, the commission's share of lobbyist registration fees, penalties and other revenues pursuant to Title 3, section 320 chapter 15 as well as other revenue sources that may benefit from the commission's acquisition and use of an electronic data collection and disclosure system.

Sec. 7. 1 MRSA §1012, sub-§§1-A, 1-B and 3-A are enacted to read:

1-A.__Anything of value.__"Anything of value" means any money, property, favor, service, payment, advance, forbearance, loan or promise of future employment.__"Anything of value" does not include compensation and expenses paid by the State, political contributions that are reported pursuant to Title 21-A,

chapter 13, payment for an appearance or speech that is unrelated to a Legislator's duties or hospitality extended for a purpose unrelated to state business by a person acting as an individual.

1-B.__Associated.__"Associated," when used with reference to an organization, means any organization of which an individual or a member of that individual's immediate family:

A.__Is a director, officer or trustee; or

B.__Individually or in aggregate owns or controls, directly or indirectly, 10% or more of the outstanding equity.

3-A.__Employee of another.__"Employee of another" means a person in any compensated service under an expressed, implied, oral or written contract for hire.__"Employee of another" includes employment with a public, private, nonprofit, religious, charitable or educational organization.__"Employee of another" does not include a self-employed person.

Sec. 8. 1 MRSA §1012, sub-§4, as amended by PL 1995, c. 33, §§1 and 2, is further amended to read:

4. Gift. "Gift" means anything of value, including forgiveness of an obligation or debt, given to a person without that person providing equal or greater consideration to the giver. "Gift" does not include:

A. Gifts received from a single source during the reporting period with an aggregate value of $300 or less;

B. A bequest or other form of inheritance;

C. A gift received from a relative; and

D. A Informational material, a publication or a subscription to a newspaper, news magazine or other news publication. related to the recipient's performance of official duties; and

E.__A meal, if the meal is provided:

(1)__By an industry or special interest organization as part of an informational program presented to a group of public servants; or

(2)__As part of a prayer breakfast or during a meeting to establish a prayer breakfast.

Sec. 9. 1 MRSA §1012, sub-§7, as enacted by PL 1989, c. 561, §4, is amended to read:

7. Income. "Income" means economic gain to a person from any source, including, but not limited to, compensation for services, including fees, commissions and payments in kind; income derived from business; gains derived from dealings in property, rents and royalties; income from investments including interest, capital gains and dividends; annuities; income from life insurance and endowment contracts; pensions; income from discharge of indebtedness; distributive share of partnership income; income from an interest in an estate or trust; prizes; and grants, but does not include gifts. Income received in kind includes, but is not limited to, the transfer of property and options to buy or lease, and stock certificates. "Income" does not include alimony and separate maintenance payments.:

A.__Alimony and separate maintenance payments; or

B.__Campaign contributions recorded and reported as required by Title 21-A, chapter 13.

Sec. 10. 1 MRSA §1012, sub-§§7-A, 7-B and 8-A are enacted to read:

7-A.__Informational program.__"Informational program" means a program offered to educate Legislators and members of the public on a matter relating to the duties of the Legislature.

7-B.__Organization.__"Organization" means any corporation, partnership, proprietorship, firm, business, enterprise, franchise, association, trust or other legal entity other than an individual or governmental entity.

8-A.__Reportable liability.__"Reportable liability" means any unsecured loan of $5,000 or more received from a person who is not a relative of the Legislator.__"Reportable liability" does not include:

A.__A credit card liability;

B.__An education loan made or guaranteed by a governmental entity, educational institution or nonprofit organization; or

C.__A loan made by a state or federally regulated financial institution for business purposes.

Sec. 11. 1 MRSA §1013, sub-§2, as amended by PL 1977, c. 252, §2, is repealed.

Sec. 12. 1 MRSA §1013, sub-§3, as enacted by PL 1989, c. 561, §6, is repealed.

Sec. 13. 1 MRSA §1014, as enacted by PL 1975, c. 621, §1, is repealed.

Sec. 14. 1 MRSA §§1014-A, 1014-B and 1014-C are enacted to read:

§1014-A.__Standards of conduct

In addition to their legislative duties, Legislators may engage in employment or professional or business activities to support themselves and their families in order to maintain continuity of professional or business activity, as long as the activity does not conflict with specific provisions of this subchapter.__Legislators also may maintain investments as long as those investments do not conflict with specific provisions of this subchapter.__This subchapter does not prevent a Legislator from accepting other employment or following any pursuit that does not interfere with the full and faithful discharge of the Legislator's duties to this State.

1.__Use of position.__A Legislator may not use the Legislator's public position or office to obtain financial gain or anything of value for the private benefit of the Legislator, the Legislator's immediate family or an organization with which the Legislator is associated.

2.__Offer or receipt of anything of value prohibited.__A person may not offer or give to a Legislator, directly or indirectly, and a Legislator may not solicit or accept from any person, directly or indirectly, anything of value if it could reasonably be:

A.__Expected to influence the Legislator's vote, official actions or judgment; or

B.__Considered as a reward for any official action or inaction on the part of the Legislator.

3.__Misuse of information.__A Legislator may not intentionally use or disclose information gained through that Legislator's official position or activities that could result in the receipt of anything of value by the Legislator, the Legislator's immediate family or any other person associated with the Legislator if the information has not been communicated to the public or is not public information.

4.__Abuse of office.__A Legislator may not use or attempt to use the Legislator's public position to influence or gain unlawful benefits, advantages or privileges for the Legislator or others.

5.__Representation before state agency or state employee.__A Legislator may not represent a person before a state agency or authority for compensation or represent an employee of a state agency or authority, except:

A.__When the Legislator is an attorney or other professional person engaged in professional conduct; or

B.__At an open hearing.

This subsection does not apply to representation by a Legislator acting in that Legislator's official capacity.

6.__Contract with governmental agency or department.__A Legislator or business with which a Legislator is associated may not enter into any contract with the State or an agency of the State that is to be paid out of governmental funds unless that contract has been awarded through a process of public notice and competitive bidding.

7.__Unlawful compensation. A Legislator may not directly or indirectly ask for, give, receive or agree to receive any compensation, gift, reward or gratuity from a source except the State for performing, omitting or deferring the performance of any official duty unless otherwise authorized by law.

8.__Prohibitions; former Legislators. Except as provided in subsection 5, for 12 months following the date on which an individual ceases to be a Legislator, that individual may not make, on behalf of any person other than a governmental entity, any formal or informal appearance before or negotiate with any officer, member or employee of a state agency or quasi-state agency with which that Legislator conducted official business as a Legislator.

9.__Personal business.__This section does not prohibit former Legislators from conducting personal business with the State.

§1014-B.__Conflict of interest

1.__Conflict of interest prohibited.__Except as provided in subsection 2, a Legislator may not:

A.__Take any official action substantially affecting a matter in which the Legislator, a member of the Legislator's

immediate family or an organization with which the Legislator is associated has a substantial financial interest; or

B.__Use the Legislator's office or position in a way that produces a substantial benefit, directly or indirectly, for the Legislator, a member of the Legislator's immediate family or an organization with which the Legislator is associated.

2.__Exceptions.__A Legislator may propose or act on legislation, a rule or general policy, even though the legislation, rule or general policy may affect the Legislator or a member of the Legislator's immediate family or an organization with which the Legislator is associated if:

A.__The legislation, rule or policy proposed by or acted upon by a Legislator affects a whole class of similar interests;

B.__Neither a Legislator's interest nor the interest of a member of the Legislator's immediate family nor the interest of an organization with which the Legislator is associated is significant when compared to all affected interests in the class; and

C.__The effect of the legislation, rule or policy proposed by or acted upon by a Legislator on the interests of the Legislator or of a member of the Legislator's immediate family or of the related organization is neither significantly greater nor significantly less than the effect upon other members of the class.

3.__Membership on board, authority or commission.__It is not a conflict of interest for a Legislator to serve on a public board, authority or commission created by the Legislature as long as compensation is not paid to the Legislator other than that allowed under the law establishing that board, authority or commission.

4.__Advisory opinions.__A Legislator may request the commission to provide an advisory opinion regarding the propriety of any matter to which the Legislator is or may become a party.

The commission shall review a request for an advisory opinion and may advise the Legislator making the request.

A.__Requests for advisory opinions and advisory opinions must be in writing.

B.__At the request of the Legislator who requested an advisory opinion, the commission's deliberations and actions may be held in executive session and may not be open to the public.

C.__It is prima facie evidence of intent to comply with this subchapter when a Legislator refers a matter to the commission and abides by the commission's advisory opinion.

D.__The commission may authorize the executive director of the commission, in consultation with the Attorney General, to act in its stead when delay is of substantial inconvenience or detriment to the requesting party.__At the earliest opportunity thereafter, the commission shall consider the advice given by the executive director and ratify that advice, as appropriate.

E.__A member of the commission or an employee hired pursuant to section 1002, subsection 5 may not make public the identity of the individual requesting an advisory opinion or of individuals or organizations mentioned in the opinion.

F.__A copy of the advisory opinion must be sent to the Legislator concerned.__A copy also must be sent to the presiding officer of the body of the Legislature of which the Legislator is a member.

§1014-C.__Complaints

1.__Request for investigation by individuals. Any person, organization or governmental body may submit a written complaint under oath to the commission that states the name of any person alleged to have committed a violation of this subchapter and the manner in which that violation has occurred.

A.__If the commission determines that a complaint under this subsection alleges facts sufficient to constitute a violation of this subchapter, it may investigate the alleged violation.

B.__If the commission determines that a complaint under this subsection does not allege facts sufficient to constitute a violation of this subchapter, it must dismiss the complaint and notify the complainant and the subject of the complaint.

C.__If the commission determines that a complaint under this subsection was brought for harassment purposes, the commission may so state.

2.__Request for investigation by Legislator. A Legislator may request the commission to make an investigation of that Legislator's own conduct or of allegations made by other persons as to the Legislator's conduct.__The request must be written and include detailed reasons for the request.

3.__Investigation initiated by commission.__When the commission receives information that makes allegations sufficient to constitute a violation of this subchapter:

A.__If a complaint under this section has not been filed, the commission may make upon its own motion a written complaint stating the name of the Legislator who is alleged to have committed a violation of this subchapter and setting forth the particulars of the violation in accordance with the information received by the commission; or

B.__If a complaint under this section has been filed and the commission finds probable cause to believe that a violation of this subchapter has occurred, other than one contained in the complaint, the commission may amend the complaint upon its own motion to include that violation.

4.__Notice to subject of complaint.__Within 10 days of receipt of a complaint under this section or the initiation of a complaint by the commission on its own motion, the commission must forward a copy of the complaint, a copy of the applicable statutes and a statement enumerating the sources of information upon which the complaint is based to the subject of that complaint.__An investigation under subsection 5 may not be initiated until the subject of the complaint has been notified.

5.__Investigations.__The commission has the authority through its chair or any member designated by the chair to administer oaths, subpoena witnesses and compel the production of books, records, papers, documents, correspondence and other material and records that the commission considers relevant.

A.__The commission shall subpoena witnesses requested by a complainant or the subject of a complaint.

B.__The commission may order testimony to be taken by deposition before any individual who is designated by the commission and may administer oaths, compel testimony and order the production of evidence.

C.__The State, its agencies and instrumentalities shall furnish to the commission any information, records or documents that the commission designates as being necessary for the exercise of its functions and duties.

D.__If any person refuses to obey an order or subpoena from the commission, the Superior Court, upon application by the commission, has jurisdiction and authority to require compliance with the order or subpoena.

6.__Probable cause of violation.__The commission shall determine whether probable cause of a violation of this subchapter exists at the conclusion of its investigation.

A.__If the commission determines that probable cause of a violation of this subchapter does not exist, it shall immediately send written notice of that determination, supported by findings of fact and conclusions, to the complainant and the subject of the complaint.

B.__If the commission determines that probable cause of a violation of this subchapter exists, it shall prepare preliminary findings of fact and conclusions that must contain, but are not limited to:

(1)__An order setting a date for a hearing before the commission to determine whether a violation of this subchapter has occurred.

(a)__That order must be served upon the subject of the complaint by certified mail.

(b)__A hearing ordered under this subparagraph must take place within 30 days of the date it is ordered unless the subject of the complaint petitions for and the commission consents to a later date.

(c)__Prior to any hearing ordered under this subparagraph, the subject of the complaint is entitled to full disclosure of all information that will be presented to the commission for its consideration.__The disclosure must include the opportunity to interview any witness who will testify at the hearing.__Any interviews must be conducted at a time approved by the commission before the date of the hearing.

(d)__The commission shall inform the subject of a complaint or the subject's counsel of any exculpatory evidence in the possession of the commission.

7.__Hearings. The subject of a complaint has the right to a hearing if requested.

A.__All witnesses at a hearing under this subsection are subject to cross-examination.__A witness at an investigation or hearing, subject to rules adopted by the commission under section 1016-G, is entitled to a copy of that witness's testimony when that testimony becomes relevant to a subsequent investigation, hearing or criminal proceeding.

B.__All witnesses at a hearing under this subsection must be sworn.__The commission may sequester witnesses as necessary.__ The commission is not bound by the strict rules of evidence, but its findings and conclusions must be based upon clear and convincing evidence.

C.__Any person whose name is mentioned in an investigation or hearing under this subsection and who believes that testimony has been given that adversely affects that person has the right to testify in that proceeding or, at the discretion of the commission and under circumstances the commission determines appropriate to protect the rights of the subject of the complaint under inquiry, to file a statement of fact under oath relating solely to the adverse testimony that has been given or about facts relevant to that testimony.

D.__Time periods for and notices of a hearing under this subsection may be waived by agreement of the commission and the subject of the complaint.

E.__After the conclusion of a hearing under this subsection and as soon as practicable, the commission shall begin deliberations on the evidence presented at that hearing and determine whether sufficient credible evidence was presented to warrant the conclusion that the subject of the complaint violated this subchapter.

8.__Findings of fact and conclusions.__If the commission determines that:

A.__A violation of this subchapter has not occurred, the commission shall immediately send written notice of that determination to the subject of the complaint and to the complainant; or

B.__A violation of this subchapter has occurred, the commission shall immediately send written notice of that determination, including its findings of fact and conclusions:

(1)__To the subject of the complaint by certified mail; and

(2)__To the presiding officer of the body of the Legislature of which the subject of the complaint is a member.

9.__Confidentiality.__Notwithstanding chapter 13, all complaints filed under this subchapter and the fact that a complaint has been filed are confidential until the investigation is complete and a hearing ordered.__The records of the commission and all information received by the commission acting under this section in the course of its investigation and the conduct of its affairs are confidential, excluding:

A.__That evidence or information disclosed at public hearings;

B.__The commission's findings of fact; and

C.__The commission's opinions and guidelines.

10.__Penalties.__Any person, except the subject of the complaint, who knowingly breaches the confidentiality requirements of this subchapter is guilty of a Class D crime.

A.__This section does not limit the application of any provisions of Title 17-A, chapter 25.

B.__If other statutory conflict of interest provisions pertaining to the conduct of any Legislator are more stringent than the provisions of this subchapter, the more stringent provisions apply.

C.__A violation of this subchapter for which no other penalty has been prescribed is a civil violation for which a forfeiture of not more than $1,000 may be adjudged.

11.__Limitation. A complaint may not be filed more than 4 years after the conduct that is the subject of that complaint is alleged to have occurred.

Sec. 15. 1 MRSA §1016-A, as amended by PL 1989, c. 734, is repealed.

Sec. 16. 1 MRSA §1016-B, as amended by PL 1991, c. 331, §1, is repealed.

Sec. 17. 1 MRSA §1016-C, as enacted by PL 1991, c. 880, §2, is amended to read:

§1016-C. Reports by legislative candidates

A candidate, as defined in Title 21-A, section 1, subsection 5, for the Legislature who is not required to file a report under section 1016-A or 1016-B 1016-D shall file a report statement containing the same information required of Legislators under sections 1016-A and 1016-B section 1016-D.__The statement must be filed no later than 5 p.m. on the first Monday in August preceding the general election unless the candidate withdraws from the election in accordance with Title 21-A, section 374-A by that date.

Sec. 18. 1 MRSA §§1016-D to 1016-G are enacted to read:

§1016-D.__Financial disclosure by Legislators

Annually, each Legislator shall file with the commission a statement of specific sources of income received in the preceding calendar year.__No later than one month before the statement is due, the commission shall mail or deliver forms prescribed and prepared by the commission to each Legislator.__Completed statements must be notarized.__The statement is a public record.

1.__Time for filing.__Each member of the Legislature shall file the statement required under this section with the commission no later than 5:00 p.m. on February 15th of each year.

2.__Updating statement.__Each Legislator whose sources of income change after submitting the statement required under this section shall file a report of that change with the commission. That report must be filed within 30 days of any addition, deletion or change to the information relating to the preceding year supplied under this section.

3.__Disclosure of Legislator's income.__The Legislator filing the statement required under this section shall provide the name and address of each specific source of income received as follows.

A.__A Legislator who is an employee of another shall name on the statement required under this section each employer from whom that Legislator received $1,000 or more and include the principal type of economic activity of that employer.

B.__A Legislator employed by an organization in which the Legislator or a member of the Legislator's immediate family, individually or in the aggregate, has an interest of 10% or more shall state the principal type of economic activity from which the Legislator's income is derived as a result of employment by the organization and the principal type of

economic activity of the organization on the statement required under this section.__The Legislator also shall identify each source from which the organization received $2,000 or more of its income for the preceding taxable year, except that, if this form of disclosure is prohibited by law, rule or an established code of professional ethics, the Legislator shall specify the principal type of economic activity from which the income is derived.

C.__A Legislator who is an attorney-at-law shall state on the statement required under this section the major areas of practice of the Legislator's firm and the major areas of practice of the Legislator.__The Legislator shall state if that Legislator is self-employed.

D.__A Legislator shall list on the statement required under this section each other source from which $1,000 or more of income has been derived during the reporting period and state the type of income derived from each source.

E.__Campaign contributions duly recorded and reported as otherwise required by law are not considered income for the purposes of this section.

4.__Disclosure of organizational affiliations.__Each Legislator shall disclose on the statement required under this section the identity of each organization with which the Legislator is associated and the nature of that association with the exception of the following:

A.__Any organization that is organized and operated primarily to influence voting at an election, including support for or opposition to an individual's present or future candidacy or to a present or future referendum campaign;

B.__Any nonprofit organization that is formed exclusively for social purposes, any nonprofit community service organization and any religious organization; and

C.__Any organization already disclosed under subsection 3, paragraph B.

5.__Disclosure of interest in real property.__Each Legislator shall disclose on the statement required under this section the real property located in this State in which the Legislator or the Legislator's immediate family holds an interest and the nature of the interest held.__The principal residence of the Legislator or the Legislator's immediate family is exempt from this requirement.__A Legislator's or a Legislator's immediate family's interest in real property does not include a

proportional share of interest in real property if the individual's proportional share is less than 10% of the outstanding shares or has a value of less than $5,000.

6.__Disclosure of gifts.__Each Legislator shall name on the statement required by this section the specific source of each gift that the Legislator receives unless the source is the Legislator's parent, grandparent, spouse, child, grandchild, brother, sister, parent-in-law, grandparent-in-law, brother-in- law, sister-in-law, uncle, aunt, great aunt, great uncle, first cousin, nephew, niece, daughter-in-law, son-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half- brother, half-sister, fiance or fiancee.

7.__Disclosure of income of immediate family.__Each Legislator shall disclose on the statement required under this section the type of economic activity representing each source of income of $1,000 or more that any member of the immediate family of the Legislator receives.

8.__Disclosure of representation before state agencies.__Each Legislator shall identify on the statement required under this section each executive branch agency before which the Legislator has represented others or assisted others for compensation.

9.__Disclosure of business with state agencies.__Each Legislator shall identify on the statement required under this section each executive branch agency to which the Legislator or the Legislator's immediate family has sold goods or services with a value in excess of $1,000.

§1016-E.__Reportable liabilities

Each Legislator shall list on the statement required under section 1016-D the source of any reportable liability of $5,000 or more owed by the Legislator or the Legislator's immediate family, individually or in the aggregate, and list the major areas of economic activity of that source.__A supplementary report to the commission must be filed by a Legislator within 30 days of incurring a reportable liability. The report must identify the creditor.

§1016-F.__Preservation of sources of income statements

The commission shall file statements of the sources of income required under section 1016-D and of reportable liabilities required under section 1016-E for 10 years from the date of receipt in a manner to facilitate document retention and retrieval.

§1016-G.__Rules

The commission shall adopt or periodically amend rules to specify the categories, procedures and forms for reporting sources of income and liabilities and to administer this subchapter.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 19. 1 MRSA §1018, as repealed and replaced by PL 1977, c. 252, §4, is amended to read:

§1018. Updating statement

A Legislator shall file an updating statement with the commission on a form prescribed and prepared by the commission and prepared by the Secretary of State. Such The statement shall must be filed within 30 days of addition, deletion or change to the information relating to the preceding year supplied under this subchapter.

Sec. 20. 1 MRSA §1019, as amended by PL 1977, c. 696, §12, is repealed.

Sec. 21. 1 MRSA §1019-A is enacted to read:

§1019-A.__Penalties

1.__False statement; willful failure to file.__A Legislator who willfully files a false statement or willfully fails to file a statement required under this subchapter commits a Class E crime.__If the commission determines that a Legislator has willfully filed a false statement or has willfully failed to file a statement required by this subchapter, the commission shall refer its findings to the Attorney General.

2.__Civil penalties; late and incomplete statements.__A Legislator may be assessed a forfeiture of $10 for each business day a statement required under this subchapter is filed late.__A statement is not considered to be filed unless it substantially conforms to the requirements of this subchapter and is properly signed.__The commission shall determine whether a statement substantially conforms to the requirements of this subchapter.

3.__Conflict of interest.__If the commission determines that a Legislator has willfully failed to file a statement required by this subchapter or has willfully filed a false statement, the

Legislator is presumed to have a conflict of interest on every question and is punishable as provided in section 1015.

Sec. 22. 30-A MRSA §4992, sub-§2, as enacted by PL 1991, c. 622, Pt. J, §23 and affected by §25, is amended to read:

2. Conflict of interest standards. Standards that prohibit conflicts of interest by local program operators and administrators. These standards must, at a minimum, meet the standards that apply to Legislators as defined in Title 1, section 1014 1014-A;

SUMMARY

This bill amends the governmental ethics laws. The bill defines "anything of value," "associated" and "employer of another." The bill also amends the definition of "gift" by excluding informational material, a publication and a meal, under certain circumstances, from the definition of "gifts." The bill defines "information program," "organization" and "reportable liability." The bill also amplifies the standards of conduct expected from a Legislator and clarifies what is considered a conflict of interest, how complaints are to be filed and handled, what financial information must be disclosed by a Legislator, what is a reportable liability and for how long income statements must be retained. The bill also states what constitutes a violation of the ethics laws.