An Act To Clarify the Financial Reporting Responsibilities of Political Action Committees and Ballot Question Committees
Maine Legislature, Session 129, LD 1869
Committee: Veterans and Legal Affairs
Sponsors: LUCHINI
Amends: 21-A MRSA §1052, 21-A MRSA §1052-A, 21-A MRSA §1053-A, 21-A MRSA §1053-B, 21-A MRSA §1054, 21-A MRSA §1054-A, 21-A MRSA §1054-B, 21-A MRSA §1056-A, 21-A MRSA §1056-B, 21-A MRSA §1057, 21-A MRSA §1058, 21-A MRSA §1061, 21-A MRSA §1062-A

Legislative Document
No. 1869
S.P. 641
In Senate, December 23, 2019
An Act To Clarify the Financial Reporting Responsibilities of 
Political Action Committees and Ballot Question Committees
Submitted by the Commission on Governmental Ethics and Election Practices pursuant to 
Joint Rule 203.
Received by the Secretary of the Senate on December 19, 2019.  Referred to the Committee 
on Veterans and Legal Affairs pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LUCHINI of Hancock.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  21-A MRSA §1052, sub-§2, as amended by PL 2007, c. 443, Pt. A, §27, 
is further amended to read:
2.  Committee.  "Committee" means any political action committee, as defined in 
this subchapter, or any ballot question committee required to be registered under section 
1056-B and includes any agent of a political action committee or ballot question 
committee.
Sec. 2.  21-A MRSA §1052-A, as amended by PL 2015, c. 408, §2, is further 
amended to read:
§1052-A.  Registration
A political action committee shall register with the commission and amend its 
registration as required by this section.  A registration is not timely filed unless it contains 
all the information required in this section.
1.  Deadlines to file and amend registrations.  A political action committee shall 
register and file amendments with the commission according to the following schedule.
A.  A political action committee as defined under section 1052, subsection 5, 
paragraph A, subparagraph (1) or (4) that receives contributions or makes 
expenditures in the aggregate in excess of $1,500 and a political action committee as 
defined under section 1052, subsection 5, paragraph A, subparagraph (5) that receives 
contributions or makes expenditures in the aggregate in excess of $5,000 for the 
purpose of influencing the nomination or election of any candidate to political office 
shall register with the commission within 7 days of exceeding the applicable amount.
B.  A political action committee shall amend the registration within 10 days of a 
change in the information that political action committees are required to disclose 
under this section.
C.  A political action committee shall file an updated registration form between 
January 1st and March 1st of each year in which a general election is held.  The 
commission may waive the updated registration requirement for a newly registered 
political action committee or other registered political action committee if the 
commission determines that the requirement would cause an administrative burden 
disproportionate to the public benefit of the updated information.
2.  Disclosure of treasurer and officers.  A political action committee must have a 
treasurer and a principal officer.  The same individual may not serve in both positions.  
The political action committee's registration must contain the names and addresses of the 
following individuals:
A.  The treasurer of the political action committee;
B.  A principal officer of the political action committee;
C.  Any other individuals who are primarily responsible for making decisions for the 
political action committee;
D.  The individuals who are primarily responsible for raising contributions for the 
political action committee; and
E.  The names of any other candidates or Legislators who have a significant role in 
fund-raising or decision-making for the political action committee.
3.  Other disclosure requirements.  A political action committee's registration must 
also include the following information:
A.  A statement indicating the specific candidates, categories of candidates or 
campaigns that the political action committee expects to support or oppose;
B.  If the political action committee is formed to influence the election of a single 
candidate, the name of that candidate;
C.  The form or structure of the organization, such as a voluntary association, 
membership organization, corporation or any other structure by which the political 
action committee functions, and the date of origin or incorporation of the 
organization;
D.  If the political action committee has been formed by one or more for-profit or 
nonprofit corporations or other organizations for the purpose of initiating or 
influencing a campaign, the names and addresses of the corporations or 
organizations;
E.  The name of the account that the political action committee will use to deposit 
contributions and make expenditures pursuant to section 1054, and the name and 
address of the financial institution at which the account is established; and 
F.  Any additional information reasonably required by the commission to monitor the 
activities of political action committees in this State under this subchapter.
4.  Acknowledgment of responsibilities.  The treasurer, principal officer and any 
other individuals who are primarily responsible for making decisions for the political 
action committee shall submit a signed statement acknowledging their responsibilities on 
a form prescribed by the commission within 10 days of registering the political action 
committee.  The signed acknowledgment statement serves as notification of the 
responsibilities of the political action committee to comply with the financial reporting, 
record-keeping and other requirements of this chapter and the potential personal liability 
of the treasurer and principal officer for civil penalties assessed against the political 
action committee.  The commission shall notify the political action committee of any 
individual who has failed to submit the acknowledgment statement.  Failure to return the 
acknowledgment statement is a violation of this subchapter for which a fine of $100 may 
be assessed against the political action committee.  This section also applies to 
individuals named in an updated or amended registration required by this subsection who 
have not previously submitted an acknowledgment statement for the political action 
committee with the commission.
5.  Resignation and removal.  An individual who resigns as the treasurer, principal 
officer or primary decision-maker decision maker of a political action committee shall 
submit a written resignation statement to the commission.  An individual's resignation is 
not effective until the commission receives the written resignation statement from the 
individual.  If an individual is involuntarily removed from the position of treasurer, 
principal officer or primary decision-maker decision maker by the political action 
committee, the political action committee shall notify the commission in writing that the 
individual has been removed from the position.  The commission may prescribe forms for 
these purposes.
Sec. 3.  21-A MRSA §1053-A, as amended by PL 2011, c. 389, §35, is further 
amended to read:
§1053-A.  Municipal elections
Organizations that qualify If an organization qualifies as a political action committees 
committee under section 1052, subsection 5 or is a ballot question committee required to 
register under section 1056-B and that receive organization receives contributions or 
make makes expenditures to influence a municipal campaign in towns or cities with a 
population of 15,000 or more shall, that organization must register and file reports with 
the municipal clerk as required by Title 30-A, section 2502.  The reports must be filed in 
accordance with the reporting schedule in section 1059 and must contain the information 
listed in section 1060.  A political action committee registered with the commission and 
that receives contributions or makes expenditures relating to a municipal election shall 
file a copy of the report containing such contributions or expenditures with the clerk in 
the subject municipality.  The commission retains the sole authority to prescribe the 
content of all reporting forms.  The commission does not have responsibility to oversee 
the filing of registrations or campaign finance reports relating to municipal campaigns, 
except that the commission shall enforce late-filing penalties under section 1020-A, 
subsection 3 upon the request of a municipal clerk.  If a municipal clerk becomes aware 
of a potential violation of this subchapter that the clerk considers to be substantial, the 
clerk may refer the matter to the commission for enforcement.  The commission may 
conduct an investigation if the information referred by the municipal clerk shows 
sufficient grounds for believing that a violation may have occurred.  After conducting the 
investigation, if the commission determines that a violation of this subchapter has 
occurred, the commission may assess penalties provided in this subchapter.
Sec. 4.  21-A MRSA §1053-B, as amended by PL 2013, c. 334, §21, is further 
amended to read:
§1053-B.  Out-of-state political action committees
An organization that is registered as a political action committee, ballot question 
committee or political committee with the Federal Election Commission or a jurisdiction 
outside of this State shall register and file reports with the commission in accordance with 
this subchapter upon receiving contributions or making expenditures to initiate or 
influence a campaign in the State in excess of the amounts that would require registration 
under section 1052-A.  The committee is not required to register and file reports if the 
committee's only financial activity within the State is to make contributions to candidates, 
party committees, political action committees or ballot question committees registered 
with the commission or a municipality and the committee has not raised and accepted any 
contributions during the calendar year to influence a campaign in this State.
Sec. 5.  21-A MRSA §1054, as amended by PL 2013, c. 334, §22, is further 
amended to read:
§1054.  Appointment of treasurer; depository
Any political action committee required to register under section 1052-A must 
appoint a treasurer before registering with the commission.  A registered political action 
committee shall deposit all funds contributed to or received by the political action 
committee for the purpose of influencing a campaign in a single account in a financial 
institution and shall finance all of the political action committee's expenditures to 
influence the election through the account.  If the political action committee was formed 
by another organization, that other organization may pay its employees for their 
campaign-related activities on behalf of the political action committee through its own 
treasury, rather than through the single account established by the political action 
committee and used for campaign expenditures.
Sec. 6.  21-A MRSA §1054-A, as enacted by PL 2013, c. 334, §23, is amended to 
read:
§1054-A.  Duties and liabilities of the treasurer, principal officer and primary 
decision maker of political action committees
1.  Duties of the treasurer.  The treasurer of the political action committee shall 
ensure that the political action committee files and amends the political action 
committee's registration, files complete and accurate financial reports with the 
commission and maintains the political action committee's records as required by this 
chapter and the commission's rules.  The treasurer is responsible for the political action 
committee's performance of these duties regardless of whether the treasurer has delegated 
administrative tasks related to these duties to another individual.
2.  Joint responsibilities of the treasurer and principal officer.  The treasurer and 
the principal officer are jointly responsible for the political action committee's 
compliance with the requirements of this chapter and the commission's rules.  The 
treasurer and principal officer are responsible for accepting and responding to notices and 
correspondence from the commission on behalf of the political action committee.
3.  Participation in spending decisions.  An individual who is the treasurer, 
principal officer or primary decision maker of the political action committee and who has 
signed the acknowledgment statement required by section 1052-A, subsection 4 is 
deemed to have participated in the spending decisions of the political action committee 
until the commission receives the individual's resignation statement or a notice of the 
individual's involuntary removal from the political action committee.
4.  Financial liability.  The commission may hold the treasurer and principal officer 
jointly and severally liable with the political action committee for any fines assessed 
against the political action committee for violations of this chapter and chapter 14.  In 
addition, the commission may assess all or part of a fine against any other agent of the 
political action committee who is directly responsible for a violation, including 
individuals who have resigned or have been removed involuntarily from the political 
action committee.  In deciding whether to assess a penalty against a treasurer, principal 
officer or any other individual, the commission may consider, among other things, 
whether the individual had actual knowledge of the action that constituted the violation or 
had authorized that action and whether the violation was intentional or caused by an error 
by a vendor or someone outside the control of the political action committee.
Sec. 7.  21-A MRSA §1054-B, as amended by PL 2019, c. 21, §1, is further 
amended to read:
§1054-B.  Payments to Legislators by political action committees
If a Legislator is a principal officer or treasurer of a political action committee or is 
one of the individuals primarily responsible for raising contributions or making decisions 
for the political action committee, the political action committee may not compensate the 
Legislator for services provided to the political action committee.  The political action 
committee may not make payments or distribute, loan, advance, deposit or gift money or 
anything of value to or compensate a business owned or operated by the Legislator.  The 
political action committee may reimburse the Legislator for expenses incurred in the 
proper performance of the duties of the Legislator, for purchases made on behalf of the 
political action committee and for travel expenses associated with volunteering for the 
political action committee.  Allowable reimbursement for expenses does not include 
payments from the political action committee that are determined by the commission to 
be for the purpose of personal financial enrichment of the Legislator.  The funds of the 
political action committee may not be commingled with the personal funds of the 
Legislator or the funds of a business owned or operated by the Legislator.
Sec. 8.  21-A MRSA §1056-A, as enacted by PL 1993, c. 715, §3, is repealed.
Sec. 9.  21-A MRSA §1056-B, sub-§1, as amended by PL 2009, c. 190, Pt. A, 
§20, is further amended to read:
1.  Filing requirements.  A report required by this section must be filed with the 
commission according to the reporting schedule in section 1059.  After completing all 
financial activity, the ballot question committee shall terminate its campaign finance 
reporting in the same manner provided in section 1061.  The ballot question committee 
shall file each report required by this section through an electronic filing system 
developed by the commission unless granted a waiver under section 1059, subsection 5.
Sec. 10.  21-A MRSA §1057, as amended by PL 2015, c. 408, §§4 and 5, is 
further amended to read:
§1057.  Records Required records for political action committees
Any political action committee that is required to register under section 1052-A or 
1053-B shall keep records as provided in this section for 4 years following the election to 
which the records pertain.
1.  Details of records.  The treasurer of a political action committee shall record a 
detailed account of: 
A.  All expenditures made to or in behalf of a candidate, campaign or political action 
committee;
B.  The identity of each candidate, campaign or political action committee;
C.  The office sought by a candidate and the district he the candidate seeks to 
represent, for candidates which that a political action committee has made an 
expenditure to or in behalf of; and
D.  The date of each expenditure.
2.  Receipts.  The treasurer of a political action committee shall retain a vendor 
invoice or receipt stating the particular goods or services purchased for every expenditure 
in excess of $50 to initiate or influence a campaign.
3.  Record of contributions.  The treasurer of a political action committee shall keep 
a record of all contributions to the political action committee, by name and mailing 
address, of each donor and the amount and date of the contribution.  This provision does 
not apply to aggregate contributions from a single donor of $50 or less for an election or 
referendum campaign.  When any donor's contributions to a political action committee 
exceed $50, the record must include the aggregate amount of all contributions from that 
donor.
4.  Account statements.  The treasurer of a political action committee shall keep 
account statements relating to the deposit of funds of the political action committee 
required by section 1054.
Sec. 11.  21-A MRSA §1058, as amended by PL 2013, c. 334, §26, is repealed.
Sec. 12.  21-A MRSA §1061, as amended by PL 2013, c. 334, §29, is further 
amended to read:
§1061.  Dissolution of committees
Whenever any political action committee determines that it will no longer accept any 
contributions or make any expenditures, the committee shall file a termination report that 
includes all financial activity from the end date of the previous reporting period through 
the date of termination with the commission.  The committee shall dispose of any surplus 
prior to termination.  In the termination report, the committee shall report any outstanding 
loan, debt or obligation in the manner prescribed by the commission.
Sec. 13.  21-A MRSA §1062-A, sub-§5, as amended by PL 2013, c. 334, §31, is 
further amended to read:
5.  Request for a commission determination.  If the commission staff finds that a 
political action committee has failed to file a report required under this subchapter, the 
commission staff shall mail a notice to the treasurer of the political action committee 
within 3 business days following the filing deadline informing the treasurer that a report 
was not received.  If a political action committee files a report required under this 
subchapter late, a notice of preliminary penalty must be forwarded to the treasurer of the 
political action committee whose report is not received by 11:59 p.m. on the deadline 
date, informing the treasurer of the commission staff finding of violation and preliminary 
penalty calculated under subsection 3 and providing the treasurer with an opportunity to 
request a determination by the commission.  A request for determination must be made 
within 14 calendar days of receipt of the commission's notice.  A principal officer or 
treasurer requesting a determination may either appear in person or designate a 
representative to appear on the principal officer's or treasurer's behalf or submit a sworn 
statement explaining the mitigating circumstances for consideration by the commission.  
A final determination by the commission may be appealed to the Superior Court in 
accordance with Title 5, chapter 375, subchapter 7 and the Maine Rules of Civil 
Procedure, Rule 80C.
Sec. 14.  21-A MRSA §1062-A, sub-§6, as amended by PL 2009, c. 302, §9, is 
further amended to read:
6.  Final notice of penalty.  After a commission meeting, notice of the final 
determination of the commission and the penalty, if any, imposed pursuant to this 
subchapter must be sent to the principal officer and the treasurer of the political action 
committee.
If a determination is not requested, the preliminary penalty calculated by the commission 
staff is final.  The commission staff shall mail final notice of the penalty to the principal 
officer and to the treasurer of the political action committee.  A detailed summary of all 
notices must be provided to the commission.
Sec. 15.  21-A MRSA §1062-A, sub-§7, as amended by PL 2007, c. 443, Pt. A, 
§41, is further amended to read:
7.  List of late-filing committees.  The commission shall prepare a list of the names 
of political action committees that are late in filing a report required under section 1059, 
subsection 2, paragraph B, subparagraph (1) or section 1059, subsection 2, paragraph C 
or D within 30 days of the date of the election and shall make that list available for public 
inspection.
SUMMARY
This bill clarifies which statutes contained in the Maine Revised Statutes, Title 21-A, 
chapter 13, subchapter 4 relate to both political action committees and ballot question 
committees and which relate only to political action committees.