An Act to Fund a Public Defender's Office Through a Tax on University Endowment Income
Maine Legislature, Session 131, LD 1328
Committee: Judiciary
Sponsors: ANDREWS
Amends: 4 MRSA §18-A, 4 MRSA §1804

Legislative Document
No. 1328
H.P. 841
House of Representatives, March 23, 2023
An Act to Fund a Public Defender's Office Through a Tax on 
University Endowment Income
Reference to the Committee on Judiciary suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ANDREWS of Paris.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  4 MRSA §18-A, sub-§3-A, ¶D is enacted to read:
D.  Funds received by the Treasurer of the State in accordance with section 4953 must 
be deposited in the fund.
Sec. 2.  4 MRSA §1804, sub-§3, ¶A, as amended by PL 2021, c. 481, §1, is further 
amended to read:
A.  Develop and maintain a system public defender's office that may employ attorneys, 
use appointed private attorneys and contract with individual attorneys or groups of 
attorneys. The commission shall consider other programs necessary to provide quality 
and efficient indigent legal services;
Sec. 3.  4 MRSA §1804, sub-§5 is enacted to read:
5.  Public Defender's Office Fund established.  The Public Defender's Office Fund, 
referred to in this subsection as "the fund," is established as a nonlapsing, dedicated fund 
within the commission.  The State Controller shall credit to the fund the tax collected 
pursuant to Title 36, chapter 727.  The commission shall use the resources in the fund to 
cover the costs of developing and maintaining a public defender's office in accordance with 
subsection 3, paragraph A.
Sec. 4.  36 MRSA c. 727 is enacted to read:
CHAPTER 727
ENDOWMENT TAX
§4951. Definition
For purposes of this chapter, "endowment" means a trust or other nonexpendable fund 
for investment created and established by private donors for the benefit of a public or 
private college or university and held by the trustees of the university or college.
§4952. Endowment tax
A tax is imposed on the annual investment income of an endowment in this State at the 
rate of 3%.
§4953. Transfers of money received
Money received pursuant to this chapter must be transferred in accordance with this 
section.
1. Public Defender's Office Fund.  Money received by the Treasurer of State under 
this chapter must be transferred to the Public Defender's Office Fund established under 
Title 4, section 1804, subsection 5 until the fund's balance is $35,000,000.
2. Maine Civil Legal Services Fund.  Any money received by the Treasurer of the 
State under this chapter after the balance under subsection 1 has exceeded $35,000,000 
must be transferred to the Maine Civil Legal Services Fund established under Title 4, 
section 18-A.
SUMMARY
This bill directs the Maine Commission on Indigent Legal Services to develop and 
maintain a public defender's office.  It establishes an endowment tax at a rate of 3% on 
funds held for investment by the trustees of a public or private college or university that 
were generated by trusts created and established by private donors for the benefit of the 
university or college.  It establishes the Public Defender's Office Fund within the Maine 
Commission on Indigent Legal Services and provides that money received from the 
endowment tax must be transferred to that fund until the balance of the fund is $35,000,000.  
It provides that any money collected in excess of $35,000,000 must be transferred to the 
Maine Civil Legal Services Fund.