An Act To Promote Corporate Ethics
Maine Legislature, Session 121, LD 0543
Committee: Business, Research and Economic Development
Sponsors: BENNETT
Amends: 5 MRSA §12004-G, 13-C MRSA §106

Legislative Document 
No. 543 
S.P.183 
In Senate, February 6, 2003 
An Act To Promote Corporate Ethics 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator BENNETT of Oxford. 
Prin.ed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-G, sub-§4-C is enacted to read: 
4-C. 
Business 
Ethics 
State Board 
of Corporate 
Ethics 
Expenses 
Only 
13-C MRSA 
§106 
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 
gualified 
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 
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. 
Page l-LR1748(1) 
C. 
Money in the fund does not lapse but must be carried 
forward from year to year to be used for the purposes of 
this section. 
D. 
The board shall report annually to the Legislature by 
February 
15th of 
each year, 
describing 
the 
amount 
and 
purpose of each grant made. 
6. 
Administration of the board. 
The Governor shall name 
one of the members to serve as administrative head of the board. 
Funds for operation of the board may be provided from the General 
Fund. 
SUMMARY 
This bill creates the State Board of Corporate Ethics to 
make grants to promote better corporate ethics. 
The board makes 
grants from a fund created by fines and penalties collected by 
the State for violations of the Maine Unfair Trade Practices Act, 
the Revised Maine Securities Act or laws providing penalties for 
fraudulent conduct.