Sec. 1. 5 MRSA §12004-G, sub-§4-C is enacted to read:

4-C. State Board Expenses 13-C MRSA

Business of Corporate Only §106

Ethics Ethics

Sec. 2. 13-C MRSA §106 is enacted to read:

§106.__State Board of Corporate Ethics

1.__Board created.__The State Board of Corporate Ethics established in Title 5, section 12004-G, subsection 4-C, referred to in this section as "the board," is created as an independent state entity to promote ethics within Maine corporations and other business entities.

2.__Members.__The board consists of 5 members of the public, appointed by the Governor.__Members must be qualified by experience and reputation to perform the functions of the board.__Except for members of the initial board, members serve terms of 3 years.__For the initial appointments, the Governor shall appoint one member for a term of one year, 2 members for a term of 2 years and 2 members for a term of 3 years.__ Members may serve more than one term.

3.__Duties.__The board shall make grants from the fund created in subsection 4 to state agencies, commissions and other instrumentalities of the State for programs to promote better corporate ethics.

4.__Reimbursement.__Members not otherwise reimbursed for expenses are entitled to receive reimbursement from the fund created in subsection 5 of necessary expenses for their attendance at meetings of the board.

5.__Fund created.__The Corporate Ethics Fund, referred to in this subsection as "the fund," is created as a separate fund within the State Treasury.

A.__Fines or penalties payable to the State by corporations or other business entities as a result of litigation or settlement agreements for violation of the Maine Unfair Trade Practices Act, the Revised Maine Securities Act or fraud laws by the corporation or other business entity must be deposited in the fund.

B.__The fund must be used by the board to make grants as described in subsection 3.