SP0151
LD 383
Session - 127th Maine Legislature
 
LR 725
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act Requiring Corporations To Have Approval from a Majority of Their Shareholders before Making Political Contributions Valued at Greater Than $5,000

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 13-C MRSA §305  is enacted to read:

§ 305 Political contributions

1 Definitions.   As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A "Committee" has the same meaning as in Title 21-A, section 1052, subsection 2.
B "Contribution" has the same meaning as in Title 21-A, section 1052, subsection 3.
C "Expenditure" has the same meaning as in Title 21-A, section 1052, subsection 4.
2 Political contributions.   A corporation shall obtain consent by an affirmative vote of a majority of all votes entitled to be cast at a properly held shareholder meeting before making a contribution or expenditure over the amount of $5,000 in a political campaign. The consent must:
A Authorize the total amount of the contribution or expenditure; and
B Direct that the contribution or expenditure be for a specific purpose, including for:

(1) A specific candidate or candidates;

(2) Candidates of a specific political party or parties;

(3) A specific political party or parties;

(4) A specific committee or committees;

(5) A specified entity or entities exempt from taxation under the United States Internal Revenue Code of 1986, Section 501(c)(4) or 501(c)(6) or successor provisions; or

(6) A specific ballot question or questions.

3 Notice.   Within 48 hours after making a contribution or expenditure under this section, a corporation shall give notice of the contribution or expenditure by electronic transmission to each shareholder and, if the corporation has a website, post the notice on the website. A notice under this subsection must state the amount, recipient and purpose of the contribution or expenditure.
4 Violation.   A director who makes or authorizes a contribution or expenditure by a corporation in violation of this section is personally liable to the corporation for the amount of the contribution or expenditure plus 6% interest per year.

summary

This bill requires a majority vote of shareholders in order for a Maine corporation to make a political contribution or expenditure of over $5,000 and requires that once the contribution or expenditure has been made the corporation send notice to its shareholders and post the notice on its website. This bill makes a director who makes a contribution in violation of these conditions personally liable to the corporation in the amount of the contribution or expenditure plus 6% interest per year.


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