Sec. 1. 10 MRSA c. 229 is enacted to read:

CHAPTER 229

UNFAIR COMPETITION BY

NONPROFIT ORGANIZATIONS

§1500-M.__Unfair competition prohibited

1.__Prohibitions.__A nonprofit organization may not:

A.__Fund, capitalize, guarantee the indebtedness of, lease obligations of or subsidize a for-profit business that is unrelated to the organization's purpose as stated in that organization's articles of incorporation, bylaws or other governing legal document; or

B.__Provide services or goods unrelated to the organization's purpose as stated in that organization's articles of incorporation, bylaws or other governing legal document to the general public at a price that is at least 15% lower than the price at which those services or goods are available through businesses with 25 or fewer employees.

2.__Exceptions.__The following are not violations of subsection 1, paragraph B:

A.__Providing goods or services to an employee, a staff member, an alumnus or alumna, a faculty member, a member, a student, a client, a volunteer, a patient or a resident of a nonprofit organization, except if such a person's sole relationship with that organization is to receive the products or services;

B.__Providing goods or services to the general public at no charge or reduced charge based upon income or need;

C.__Investing in real estate, publicly traded securities or other investments;

D.__Providing financial or other support for other nonprofit organizations; or

E.__Providing goods or services at a price that is at least 15% lower than the price at which those goods are available through businesses with 25 or fewer employees if that price is the same as or higher than the price at which the same goods or services are available from any for-profit business.