An Act to Address Conflicts of Interest with Municipal Contracts
Maine Legislature, Session 132, LD 1560
Committee: State and Local Government
Sponsors: HYMES
Amends: 30-A MRSA §2605

Legislative Document
No. 1560
H.P. 1018
House of Representatives, April 10, 2025
An Act to Address Conflicts of Interest with Municipal Contracts
Reference to the Committee on State and Local Government suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative HYMES of Waldo.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §2605, sub-§2, as enacted by PL 1987, c. 737, Pt. A, §2 and 
Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further 
amended to read:
2.  Contracts.  A contract, other than a contract obtained through properly advertised 
bid procedures, made by a municipality, county or quasi-municipal corporation during the 
term of an official of a body of the municipality, county or quasi-municipal corporation 
involved in the negotiation or award of the contract who has a direct or an indirect 
pecuniary interest in it the contract is voidable, except as provided in subsection 4. A 
contract, even if the contract was obtained through properly advertised bid procedures, 
made by a municipality during the term of an official of the municipality involved in the 
negotiation or award of the contract who has a direct or an indirect pecuniary interest in the 
contract is voidable, except as provided in subsection 4.
Sec. 2.  30-A MRSA §2605, sub-§4, as enacted by PL 1987, c. 737, Pt. A, §2 and 
Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further 
amended by enacting after the first blocked paragraph a new blocked paragraph to read:
If the municipality determines that no other option is feasible but to award a municipal 
contract to an official who is an officer, director, partner, associate, employee or 
stockholder of a private corporation, business or other economic entity to which the 
question relates or with which the unit of a municipality contracts, the municipality must 
appoint an independent board of 3 residents to address grievances against the business 
practices of the officer, director, partner, associate, employee or stockholder of a private 
corporation, business or other economic entity for the life of the contract.
SUMMARY
This bill amends the law governing conflicts of interest by municipal officers in the 
awarding of municipal contracts by making voidable a contract made by a municipality 
during the term of an official of the municipality involved in the negotiation or award of 
the contract who has a direct or an indirect pecuniary interest in the contract even if the 
contract was obtained through properly advertised bid procedures. The bill also creates a 
new exception to the voidability of municipal contracts if the municipality determines that 
no other option is feasible but to award a municipal contract to an official who is an officer, 
director, partner, associate, employee or stockholder of a private corporation, business or 
other economic entity to which the question relates or with which the unit of a municipality 
contracts. In this case, the municipality must appoint an independent board of 3 residents 
to address grievances against the business practices of the officer, director, partner, 
associate, employee or stockholder of a private corporation, business or other economic 
entity for the life of the contract.