An Act To Prohibit Disbursement of Funds by the State, Municipalities and Counties to Certain Nonprofits and Require the Secretary of State To Develop a System of Registration
Maine Legislature, Session 121, LD 1074
Committee: State and Local Government
Sponsors: JOY, ANDREWS, ANNIS, HEIDRICH, LEWIN, VAUGHAN
Amends: 5 MRSA §1521, 30-A MRSA §909

12lst MAINE LEGISLATURE 
Legislative Document 
No. 1074 
H.P.792 
House of Representatives, March 4,2003 
An Act To Prohibit Disbursement of Funds by the State, 
Municipalities and Counties to Certain Nonprofits and Require the 
Secretary of State To Develop a System of Registration 
Reference to the Committee on State and Local Government suggested and ordered printed. 
Presented by Representative JOY of Crystal. 
;r;~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: ANDREWS of York, ANNIS of Dover-Foxcroft, 
HEIDRICH of Oxford, LEWIN of Eliot, VAUGHAN of Durham. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §1521 is enacted to read: 
§15Z1. 
Disbursement of funds to nonprofit corporations prohibited 
The State may not disburse state funds 
to any nonprof i t 
corporation except for: 
L 
Educationa1 
institutions. 
Licensed 
educational 
institutions with clearly defined and recognized student bodies; 
2. 
Licensed hea1th care organizations or institutions. 
Licensed health care organizations or institutions wi th clear ly 
defined and recognized clientele; 
3. 
Veterans organizations. 
Veterans organizations; and 
4. 
Churches. 
Churches. 
Nothing in this section may be construed, to prevent the 
State from disbursing funds to municipalites or counties. 
Sec. 2. 30-A MRSA §909 is enacted to read: 
§909. 
Disbursement of funds to nonprofit corporations prohibited 
A county may not disburse funds to any nonprofit corporatiull 
except for: 
L 
Educational 
institutions. 
Licensed 
educational 
institutions with clearly defined and recognized student bodies; 
2. 
Licensed health care organizations or institutions. 
Licensed health care organizations or institutions with clearly 
defined and recognized clientele; 
3. 
Veterans organizations. 
Veterans organizations; and 
4. 
Churches. 
Churches. 
Nothing in this section may be construed to prevent a county 
from disbursing funds to municipalities. 
Sec. 3. 30-A MRS A *2006 is enacted to read: 
§Z006. 
Disbursement of funds to nonprofit corporations prohibited 
A municipality may 
not disburse 
funds 
to 
any 
nonprofit 
corporation exriept for: 
Page l-LRI097(1) 
1. 
Educational 
institutions. 
Licensed 
educational 
institutions with clearly defined and recognized student bodies; 
2. 
Licensed health care organizations 
or 
institutions. 
Licensed health care organizations or institutions with clearly 
defined and recognized clientele; 
3. 
Veterans organizations. 
Veterans organizations; and 
4. 
Churches. 
Churches. 
Sec. 
4. 
corporations. 
Classification 
and 
The Secretary of 
registration 
State shall 
system 
develop 
for 
nonprofit 
a system of 
classification and registration for all nonprofit corporations 
operating within 
the 
State. 
As 
part of 
the 
registry, 
the 
Secretary of State shall develop 
a 
method to facilitate the 
reporting 
of 
information 
regarding 
all 
funds 
collected 
by 
nonprofit corporations, including, but not limited to: 
1. 
The sources of funds; 
2. 
The reasons for collections of funds; 
~. 
How collected funds are disbursed; and 
4. 
The specific purposes for and desired outcomes from the 
disbursement of funds. 
The Secretary of State shall submit the proposed system, 
together 
with 
any 
necessary 
implementing legislation, 
to 
the 
,Joint Standing Committee on cTudiciary no later than December 
3, 
2003. 
Following its receipt and review of the report. the Joint 
Standing Committee on Judiciary may report out legislation to the 
SUMMARY 
This bill prohibits the State, municipalities and counties 
from disbursing funds 
to certain nonprofit corporations. 
The 
bill also requires the Secretary of State to develop a system "I 
classification and registration for all nonprofit corporations in 
the State and a method to facilitate reporting of informatioll 
reaarding the collections of funds.