An Act To Prohibit the Use of Workers' Compensation Trust Funds for Political Contributions
Maine Legislature, Session 121, LD 0974
Committee: Insurance and Financial Services
Sponsors: HATCH
Amends: 39-A MRSA §403

12lst MAINE LEGISLATURE 
Legislative Document 
No. 974 
S.P.315 
In Senate, February 25,2003 
An Act To Prohibit the Use of Workers' Compensation Trust Funds 
for Political Contributions 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Senator HATCH of Somerset. 
JOY J. O'BRIEN 
Secretary of the Senate 
Under suspension of the rules, cosponsored by Representati ve HATCH of Skowhegan and 
Senators: BROMLEY of Cumberland, CATHCART of Penobscot, President DAGGETT of 
Kennebec, DAMON of Hancock, DOUGLASS of Androscoggin, EDMONDS of Cumberland, 
GAGNON of Kennebec, HALL of Lincoln, MARTIN of Aroostook, PENDLETON of 
Cumberland, ROTUNDO of Androscoggin, STANLEY of Penobscot, STRIMLING of 
Cumberland, TREAT of Kennebec, Representatives: ADAMS of Portland, BULL of Freeport, 
BUNKER of Kossuth Township, CANAVAN of Waterville, COWGER of Hallowell, 
CUMMINGS of Portland, DUDLEY of Portland, DUPLESSIE of Westbrook, FAIRCLOTH of 
Bangor, GAGNE-FRIEL of Buckfield, GROSE of Woolwich, HUTTON of Bowdoinham, 
KETTERER of Madison, KOFFMAN of Bar Harbor, LA VERRIERE-BOUCHER of 
Biddeford, LERMAN of Augusta, LUNDEEN of Mars Hill, McGLOCKLIN of Embden, 
McKEE of Wayne, MILLS of Farmington, NORBERT of Portland, O'NEIL of Saco, 
PARADIS of Frenchville, PATRICK of Rumford, PINEAU of Jay, RICHARDSON of 
Brunswick, RINES of Wiscasset, SIMPSON of Auburn, SMITH of Monmouth, SMITH of Van 
Buren, THOMAS of Orono, THOMPSON of China, TWOMEY of Biddeford. 
Pnnted Ull recycled pJ.rn 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRSA §403, sub-§18 is enacted to read: 
18. 
Prohibition 
against 
using 
funds 
for 
political 
contributions. 
Once 
deposited into 
a 
trust fund 
created to 
comply with the reguirements of this section, funds and assets 
may not be withdrawn for the purpose of making a contribution to 
a political candidate or political action committee reguired to 
file a report under Title 2l-A, chapter 13, subchapter 2 or 4. 
Sec. 2. Bureau of Revenue Services review. 
The Department of 
Administrative and Financial Services, Bureau of Revenue Services 
shall 
review 
the 
tax 
filings 
of 
self-insurers, 
group 
self-insurers and their trust funds to determine whether funds 
removed 
from 
a 
trust 
fund 
for 
the 
purpose 
of 
political 
contributions prior to the effective date of this Act have been 
properly accounted for in tax filings. 
SUMMARY 
This bill prohibits self-insuring employers 
and 
employer 
groups 
from 
using workers' 
compensation trust funds 
to 
make 
contributions 
to 
political 
candidates 
or 
political 
action 
committees. 
It also requires the Department of Administrative 
and Financial Services, Bureau of Revenue Services to review the 
tax filings related to self-insurer trust funds 
to determine 
whether 
funds 
removed 
from 
the 
trusts 
for 
the 
purpose 
of 
political contributions prior to the effective date of this bill 
were properly accounted for, for example to determine whether a 
tax deduction was taken when the funds were deposited and, if so, 
whether 
the 
funds 
should have 
been 
reported 
as 
income 
when 
removed from the trust fund. 
Page l-LR0182(1)