An Act To Implement the Recommendations of the Office of Program Evaluation and Government Accountability and the Government Oversight Committee Regarding Quasi-independent State Entities
Maine Legislature, Session 125, LD 1843
Committee: State and Local Government

Legislative Document 
No. 1843 
H.P. 1364 
House of Representatives, March 6, 2012 
An Act To Implement the Recommendations of the Office of 
Program Evaluation and Government Accountability and the 
Government Oversight Committee Regarding Quasi-independent 
State Entities 
Reported by Representative BURNS of Whiting for the Government Oversight Committee 
pursuant to the Maine Revised Statutes, Title 3, section 997, subsection 2. 
Reference to the Committee on State and Local Government suggested and ordered printed 
pursuant to Joint Rule 218. 
HEATHER J.R. PRIEST 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1.  5 MRSA c. 379, sub-c. 3 is enacted to read: 
SUBCHAPTER 3 
QUASI-INDEPENDENT STATE ENTITIES 
§12021.  Definitions  
As used in this subchapter, unless the context indicates otherwise, the following 
terms have the following meanings. 
1.  Competitive procurement.  "Competitive procurement" means the transmission 
of a written request for proposal, written request for qualifications or other invitation to 
compete on price or qualifications to at least 3 responsible suppliers that is to be replied 
to at a stated time.  
2.   Contributions.  "Contributions" means payments for membership dues and fees, 
gifts, donations and sponsorships, including those that result in public advertisement of 
the entity. 
3.  Governing body.  "Governing body" means a person or group of persons with the 
responsibility or authority to manage an entity. 
4.   Managing director.  "Managing director" means the person with overall day-to-
day responsibility for directing the operations of a quasi-independent state entity. 
5.  Quasi-independent state entity.  "Quasi-independent state entity" means an 
organization that has been established by the Legislature as an independent board, 
commission or agency to fulfill governmental purposes and that receives revenues that 
are derived, in whole or part, from federal or state taxes or fees.  
6.  Reporting entity.  "Reporting entity" or "entity" means: 
A.  The Board of Licensure in Medicine under Title 32, section 3263; 
B.  The Child Development Services System under Title 20-A, section 7209; 
C.  The Combat Sports Authority of Maine under Title 8, section 522; 
D.  The ConnectME Authority under Title 35-A, section 9203; 
E.  The Efficiency Maine Trust under Title 35-A, section 10103; 
F.  The Finance Authority of Maine under Title 10, section 964; 
G.  The Loring Development Authority of Maine under Title 5, section 13080; 
H.  The Maine Community College System under Title 20-A, chapter 431; 
I.  The Maine Educational Center for the Deaf and Hard of Hearing and the Governor 
Baxter School for the Deaf under Title 20-A, section 7401; 
J.  The Maine Educational Loan Authority under Title 20-A, section 11414; 
K.  The Maine Governmental Facilities Authority under Title 4, section 1602; 
L.  The Maine Health and Higher Educational Facilities Authority under Title 22, 
section 2054; 
M.  The Maine Human Rights Commission under Title 5, section 4561; 
N.  The Maine Maritime Academy under Private and Special Law 1941, chapter 37; 
O.  The Maine Municipal and Rural Electrification Cooperative Agency under Title 
35-A, section 4131; 
P.  The Maine Municipal Bond Bank under Title 30-A, section 5951; 
Q.  The Maine Port Authority under Title 23, section 4420; 
R.  The Maine Public Employees Retirement System under Title 5, section 17101; 
S.  The Maine State Housing Authority under Title 30-A, section 4722; 
T.  The Maine Technology Institute under Title 5, section 15302; 
U.  The Maine Turnpike Authority under Title 23, section 1963; 
V.  The Midcoast Regional Redevelopment Authority under Title 5, section 13083-G; 
W.  The Northern New England Passenger Rail Authority under Title 23, chapter 
621, subchapter 2; 
X.  The Small Enterprise Growth Board under Title 10, section 384; 
Y.  The State Board of Nursing under Title 32, chapter 31, subchapter 2; 
Z.  The University of Maine System under Private and Special Law 1865, chapter 
532; 
AA.  The Washington County Development Authority under Title 5, section 
13083-A; and 
BB.  The Workers' Compensation Board under Title 39-A, section 151. 
§12022.  Financial policies and procedures 
A governing body of an entity: 
1.  Consistency with authorizing law.  Shall ensure that all activities and 
expenditures of the entity are limited to those necessary to accomplish the entity's mission 
and to carry out the entity's duties consistent with the entity's authorizing law; 
2.  Compliance with financial policies and procedures.  Shall ensure that the 
governing body, management and staff of the entity comply with financial policies and 
procedures established by the governing body; 
3.  Selection of vendors.  Shall adopt by December 31, 2012 and implement by July 
1, 2013 written policies and procedures governing the selection of vendors designed to 
ensure that the entity secures the best value in its procurements.  To the extent possible, 
consistent with the entity's authorizing law, the policies and procedures must: 
A.  Establish competitive procurement as the standard procurement method; 
B.  Specify the conditions under which competitive procurement may be waived; and  
C.  For procurements exceeding $10,000 that were not competitively procured, 
require that written justification for and evidence of approvals are maintained on file 
for 5 years; 
4.  Contributions.  Shall adopt by December 31, 2012 and implement by July 1, 
2013 written policies and procedures governing the use of the entity's resources for 
contributions.  To the extent possible, consistent with the entity's authorizing law, the 
policies and procedures must: 
A.   Establish criteria to ensure that contributions are directly related to the entity's 
mission and activities; 
B.  Require that for identification and reporting purposes contributions are budgeted 
and accounted for separately from other expenditures in the entity's records; 
C.  Establish requirements for maintaining documentation to support each 
contribution; and 
D.  Require that the governing body must approve the annual budget for contributions 
and be provided periodic reports on contributions made by the entity; 
5.  Travel, meals and entertainment.  Shall adopt by December 31, 2012 and 
implement by July 1, 2013 written policies and procedures governing the use of the 
entity's resources to pay costs of travel, meals and entertainment.  To the extent possible, 
consistent with the entity's authorizing law, the policies and procedures must: 
A.  Limit travel, meal and entertainment costs to those reasonable and necessary for 
accomplishing the entity's mission and activities; 
B.  Describe the persons for whom the entity will pay travel, meal and entertainment 
costs and specify the conditions under which those costs will be paid and whether 
directly or through reimbursement; 
C.  Establish the requirements for supporting documentation and approval of travel, 
meal and entertainment costs paid directly or through reimbursement; 
D.  Require for identification and reporting purposes that travel, meal and 
entertainment costs are budgeted and accounted for separately from other 
expenditures in the entity's records; and 
E.  Require that the governing body must approve the annual budget for travel, meal 
and entertainment costs and be provided periodic reports on actual costs paid directly 
or reimbursed; and 
6.  Lobbying.  May not retain any person, other than entity staff, for the purpose of 
lobbying as defined in Title 3, section 312-A, subsection 9. 
§12023.  Reports to the Legislature 
1.  Adoption and implementation.  By February 1, 2013, a governing body shall 
submit a report to the Legislature on the adoption and implementation status of written 
policies and procedures required by section 12022 and describing the measures the 
governing body intends to use to monitor compliance with those policies and procedures. 
The report must be submitted to the Executive Director of the Legislative Council in a 
manner established by the executive director, who shall refer it to the appropriate joint 
standing committee or committees of the Legislature for review. 
2.  Ongoing reports.  By February 1, 2014, and annually thereafter, a governing 
body shall submit a report to the Legislature containing the following information: 
A.  A list of all procurements exceeding $10,000 in the preceding year for which 
competitive procurement was waived under the policies adopted pursuant to section 
12022, subsection 3, including procurements exceeding $10,000 that were made 
under contracts previously entered into for which competitive procurement was not 
required.  The list must include the names of the vendors and costs associated with 
those procurements; 
B.  A list of all persons to which the entity made contributions greater than $1,000 in 
the preceding year and the total amount contributed to each; and 
C.  A description of changes made in the preceding year to the written policies and 
procedures required by section 12022 or to the procedures used by the governing 
body to monitor compliance with those policies and procedures. 
Reports to the Legislature required by this section must be submitted to the Clerk of 
the House, the Secretary of the Senate and the Executive Director of the Legislative 
Council. 
§12024.  Proposed quasi-independent state entities 
A joint standing committee of the Legislature that considers proposed legislation 
establishing a quasi-independent state entity after January 1, 2013 shall: 
1.  Additions to reporting entities.  Evaluate whether the proposed quasi-
independent state entity should be added to the list of reporting entities in section 12021, 
subsection 6.  The joint standing committee shall consider: 
A.  Whether the governmental purpose for which the proposed quasi-independent 
state entity is being established is funded with revenues that are derived, in whole or 
part, from federal or state taxes or fees; 
B.  Whether the powers and duties of the proposed quasi-independent state entity are 
more than advisory as described in section 12004-I; 
C.  Whether the proposed quasi-independent state entity's organizational and 
accountability structure allows the quasi-independent state entity to make significant 
policy and financial decisions independent of the Legislature and executive branch; 
D.  Whether the proposed quasi-independent state entity is considered a component 
unit of State Government for financial reporting purposes under the standards and 
pronouncements issued by a governmental accounting standards board or for any 
purposes under Part 4; and 
E.  Whether the proposed quasi-independent state entity will be subject to review 
under the State Government Evaluation Act. 
If the committee determines that the proposed quasi-independent state entity should be 
added to the list of reporting entities under section 12021, subsection 6, the committee 
shall include that determination in any report on the legislation; and 
2.  Legislative standards.  Ensure that proposed legislation that establishes a new 
quasi-independent state entity: 
A.  Provides, if applicable, for staggered terms of office for members of the 
governing body, with terms not to exceed 5 years; 
B.  Requires that the governing body must be responsible for: 
(1)  Appointment, performance review and termination of the managing director; 
(2)  Establishing and ensuring compliance with organizational policies and 
procedures, including those required by section 12022; and 
(3)  Ensuring adherence to all requirements of this chapter; 
C.  Specifies qualifications required or desired of the managing director; 
D.  Provides conditions under which members of the governing body and the 
managing director may be removed from office and establishes the process for 
removal; 
E.  Identifies the joint standing committee of the Legislature with oversight over the 
entity and any matters that must be reviewed by that committee; and 
F.  Contains audit and reporting requirements. 
PART B 
Sec. B-1.  Legislation.  A joint standing committee of the Legislature having 
jurisdiction over the subject matter of a quasi-independent state entity, as defined in the 
Maine Revised Statutes, Title 5, section 12021, subsection 5, may submit legislation to 
the First Regular Session of the 126th Legislature to add that entity to the list of reporting 
entities under Title 5, section 12021, subsection 6 or to amend the laws governing the 
quasi-independent state entity to be consistent with Title 5, chapter 379, subchapter 3. 
SUMMARY 
This bill implements recommendations of the Government Oversight Committee 
stemming from the report on the Maine Turnpike Authority issued by the Office of 
Program Evaluation and Government Accountability. The purpose of this bill is to 
improve transparency, accountability, governance and financial practices in specified 
areas for existing and future quasi-independent state entities. 
Part A of the bill requires certain existing quasi-independent state entities to adopt 
and implement policies and procedures related to procurement practices, contributions 
made to outside organizations and travel, meal and entertainment expenses. It also 
prohibits those entities from retaining persons other than entity staff as lobbyists.  This 
Part also clarifies that the entity's governing body is responsible for ensuring compliance 
with the adopted policies and for reporting annually to the Legislature on certain 
procurements and contributions.  Part A also establishes a framework for joint standing 
committees of the Legislature to use in assessing whether proposed quasi-independent 
state entities should be required to follow these requirements and to help ensure that 
strong governance structures are incorporated into legislation for future quasi-
independent state entities. 
Part B of the bill gives a joint standing committee of the Legislature authority to 
submit legislation to the 126th Legislature to add an existing quasi-independent state 
entity to the list of agencies that must adhere to the requirements established in Part A for 
financial policies and procedures and reporting to the Legislature or to incorporate the 
provisions required for future quasi-independent state entities into the laws governing 
existing entities that fall under the committee's jurisdiction.