An Act Requiring Corporations To Have Approval from a Majority of Their Shareholders before Making Political Contributions Valued at Greater Than $5,000
Maine Legislature, Session 127, LD 0383
Committee: Veterans and Legal Affairs
Sponsors: GRATWICK, TIPPING-SPITZ, BREEN, MIRAMANT, CHAPMAN, KUMIEGA, RYKERSON, STANLEY, STUCKEY
Amends: 13-C MRSA §305

Legislative Document 
No. 383 
S.P. 151 
In Senate, February 12, 2015 
An Act Requiring Corporations To Have Approval from a Majority 
of Their Shareholders before Making Political Contributions Valued 
at Greater Than $5,000 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator GRATWICK of Penobscot. 
Cosponsored by Representative TIPPING-SPITZ of Orono and 
Senators: BREEN of Cumberland, MIRAMANT of Knox, Representatives: CHAPMAN of 
Brooksville, KUMIEGA of Deer Isle, RYKERSON of Kittery, STANLEY of Medway, 
STUCKEY of Portland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  13-C MRSA §305 is enacted to read: 
§305.  Political contributions 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Committee" has the same meaning as in Title 21-A, section 1052, subsection 2. 
B.  "Contribution" has the same meaning as in Title 21-A, section 1052, subsection 3. 
C.  "Expenditure" has the same meaning as in Title 21-A, section 1052, subsection 4. 
2.  Political contributions.  A corporation shall obtain consent by an affirmative vote 
of a majority of all votes entitled to be cast at a properly held shareholder meeting before 
making a contribution or expenditure over the amount of $5,000 in a political campaign.  
The consent must: 
A.  Authorize the total amount of the contribution or expenditure; and 
B.  Direct that the contribution or expenditure be for a specific purpose, including for: 
(1)  A specific candidate or candidates; 
(2)  Candidates of a specific political party or parties; 
(3)  A specific political party or parties; 
(4)  A specific committee or committees; 
(5)  A specified entity or entities exempt from taxation under the United States 
Internal Revenue Code of 1986, Section 501(c)(4) or 501(c)(6) or successor 
provisions; or 
(6)  A specific ballot question or questions. 
3.  Notice.  Within 48 hours after making a contribution or expenditure under this 
section, a corporation shall give notice of the contribution or expenditure by electronic 
transmission to each shareholder and, if the corporation has a website, post the notice on 
the website. A notice under this subsection must state the amount, recipient and purpose 
of the contribution or expenditure. 
4.  Violation.  A director who makes or authorizes a contribution or expenditure by a 
corporation in violation of this section is personally liable to the corporation for the 
amount of the contribution or expenditure plus 6% interest per year. 
SUMMARY 
This bill requires a majority vote of shareholders in order for a Maine corporation to 
make a political contribution or expenditure of over $5,000 and requires that once the 
contribution or expenditure has been made the corporation send notice to its shareholders 
and post the notice on its website.  This bill makes a director who makes a contribution in 
violation of these conditions personally liable to the corporation in the amount of the 
contribution or expenditure plus 6% interest per year.