Sec. 1. 21-A MRSA §1001, sub-§2-A is enacted to read:

2-A.__Governmental entity.__"Governmental entity" means any municipality, county government or quasi-municipal district, including water and sewer districts.

Sec. 2. 21-A MRSA §1014-C is enacted to read:

§1014-C.__Endorsement by governmental entity prohibited

A governmental entity may not endorse a campaign for the passage or defeat of a referendum or endorse a candidate.__A governmental entity that violates this provision is subject to a penalty.__The commission shall adopt rules to establish appropriate penalties.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 3. 21-A MRSA §1015, sub-§10 is enacted to read:

10.__Governmental entities.__A governmental entity may not make a contribution to a political candidate or to a campaign for the passage or defeat of a referendum.__A governmental entity that violates this provision is subject to a penalty.__ The commission shall adopt rules to establish appropriate penalties.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

SUMMARY

This bill prohibits municipalities, county governments and quasi-municipal districts, including water and sewer districts, from endorsing campaigns for the passage or defeat of a referendum or political candidates. The bill also prohibits these entities from making contributions to candidates or referendum campaigns. The bill authorizes the Commission on Governmental Ethics and Election Practices to set penalties for violating these prohibitions.