An Act Regarding Corporate and Other Entity Campaign Advertising Disclosure and Accountability
Maine Legislature, Session 125, LD 1526
Committee: Veterans and Legal Affairs
Sponsors: HINCK, JACKSON, BELIVEAU, CAREY, DILL, KRUGER, RUSSELL, TREAT, BARTLETT
Amends: 21-A MRSA §1015-B

Legislative Document 
No. 1526 
H.P. 1120 
House of Representatives, April 28, 2011 
An Act Regarding Corporate and Other Entity Campaign 
Advertising Disclosure and Accountability 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative HINCK of Portland. 
Cosponsored by Senator JACKSON of Aroostook and 
Representatives: BELIVEAU of Kittery, CAREY of Lewiston, CORNELL du HOUX of 
Brunswick, DILL of Cape Elizabeth, KRUGER of Thomaston, RUSSELL of Portland, TREAT 
of Hallowell, Senator: BARTLETT of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  21-A MRSA §1015-B is enacted to read: 
§1015-B.  Political activities by corporations and other groups 
In addition to any applicable disclosure and reporting requirements prescribed by this 
chapter, a corporation or group that makes contributions shall comply with this section. 
For purposes of this section, "group" means a political action committee, firm, 
partnership, trade or professional association or union. 
1.  Contributions and expenditures by corporations and groups.  A corporation or 
group that makes a contribution or expenditure to support or defeat a candidate, 
referendum, direct initiative of legislation or people's veto referendum of more than 
$2,000 in a calendar year shall submit a report to the commission within 60 days of the 
contribution or expenditure.  The report must include but is not limited to: 
A.  The amount of the contribution or expenditure; and 
B.  The candidate, referendum, direct initiative of legislation or people's veto 
referendum to which the contribution or expenditure relates. 
Reports required by this subsection must be retained by the corporation or group for a 
minimum of 5 years.  The reporting requirements of this subsection are satisfied if 
substantially similar reports are filed in accordance with other provisions of this chapter. 
2.  Shareholder or membership approval.  Before making a contribution or 
expenditure aggregating more than $2,000 in a calendar year for a political 
communication to support or defeat a candidate, referendum, direct initiative of 
legislation or people's veto referendum, a corporation or group shall submit the content 
and manner of distribution of the communication that resulted in exceeding the $2,000 
threshold, including the geographic area where the communication will be distributed, to 
the shareholders of the corporation or members of the group for approval.  The 
corporation or group may make the contribution or expenditure for the communication if 
a majority of the shareholders or members of the group approve and determine that the 
expenditure or contribution is in the best interests of the corporation or group.  If any 
shareholder or member objects to the contribution or expenditure, that shareholder or 
member may file a notice of objection with the corporation or group and is entitled to a 
pro rata share of the amount of the contribution or expenditure subject to the objection. 
3.  Television and radio communications; disclosure required.  A communication 
made by or purchased by a corporation or group supporting the election or defeat of a 
candidate, referendum, direct initiative of legislation or people's veto referendum 
broadcast on television or radio must include the following information clearly audible or 
visible to the viewer: 
A.  The identity of the corporation's or group's chief executive officer or principal 
officer and the officer's title; 
B.  The city and state of the corporation's or group's principal place of business; and 
C.  The following statement, made by the chief executive officer, chair, principal 
officer or business manager of the corporation or group: 
"I 
am 
......................... 
(name), 
the 
........................... 
(office 
held) 
of 
............................... (name of corporation or group).  ............................ (name of 
corporation or group) paid for and approves this message." 
For a television communication, this statement must be made with a full-screen view 
of the person making the statement. 
4.  Internet communications; disclosure required.  A communication made by or 
purchased by a corporation or group supporting the election or defeat of a candidate, 
referendum, direct initiative of legislation or people's veto referendum broadcast on the 
Internet must include the following information clearly audible or visible to the viewer: 
A.  The identity of the corporation's or group's chief executive officer or principal 
officer and the officer's title; 
B.  The city and state of the corporation's or group's principal place of business; 
C.   The following statement, made by the chief executive officer, chair, principal 
officer or business manager of the corporation or group: 
"I am .......................... (name), the .................................. (office held) of 
............................ (name of corporation or group).  ..................... (name of corporation 
or group) paid for and approves this message." 
This statement must be made with a full-screen view of the person making the 
statement. 
D.  A list of the names of the 5 persons or entities that have made the largest 
contributions to the corporation or group in excess of $250 during the 12-month 
period before the date of the communication, with the words "Top Five 
Contributors"; and 
E.  The logo of the corporation or group, if applicable. 
5.  Print communications; disclosure required.  A printed communication made by 
a corporation or group supporting the election or defeat of a candidate, referendum, direct 
initiative of legislation or people's veto referendum must include the same information as 
described in subsection 4, paragraphs A, B, D and E, set aside from other printed matter 
so it is clearly distinguishable and printed in a font size no less than 10% of the largest 
font size in the communication. 
6.  Liability and civil actions.  A shareholder of a corporation or a member of a 
group may take a civil course of action against that corporation or group if the 
corporation or group made a contribution or expenditure without shareholder or member 
approval in violation of subsection 2 or if the contribution or expenditure is considered to 
have had an adverse effect on the corporation's or group's value.  If a corporation or group 
violates any provision of this section, the directors of the corporation or group at the time 
of the contribution or expenditure are jointly and severally liable to repay the corporation 
or group the amount of the contribution or expenditure with an interest rate of 8% 
annually.  A shareholder or member may seek compensatory damages or $200, whichever 
is greater, for violation of this section.  Punitive damages may be awarded to a 
shareholder or member only if there exists clear and convincing evidence that the 
violation was made willfully and with malicious intent. 
7.  Violations.  A person who or corporation or group that makes a communication 
knowingly without the disclosures required by this section is punishable by a fine of 3 
times the amount of the expenditure for the communication or $100,000, whichever is 
greater.  A person who knowingly aids or abets a violation as described in this subsection 
is subject to a fine of not more than $10,000 and imprisonment not to exceed a term of 
one year. 
SUMMARY 
This bill requires corporations or groups, including political action committees and 
unions, that make expenditures or contributions for political communications to get 
approval from the majority of the corporation's shareholders or, for other groups, 
approval for contributions and expenditures from a majority of its membership.  It 
provides for specific disclosures by corporations or groups that make political 
communications.  The bill establishes liability for a corporation or group if it violates the 
disclosure and reporting requirements.  It also provides for a shareholder of the 
corporation or member of the group to seek compensatory and punitive damages from the 
directors of the corporation or group.