An expenditure, communication or broadcast which that results in a violation of this section may result in a civil penalty of no more than $100 $200. Enforcement and collection procedures shall must be in accordance with section 1062-A.

Sec. 5. 21-A MRSA §1056, sub-§1, as amended by IB 1995, c. 1, §16, is further amended to read:

1. Aggregate expenditures. A committee may not make expenditures in support of or opposition to the candidacy of one person or to a political committee in an aggregate amount greater than $5,000 in any election. Beginning January 1, 1999, a committee may not make contributions in support of the candidacy of one person aggregating more than $500 in any election for a gubernatorial candidate, or $250 in any election for any other candidate.

Sec. 6. 21-A MRSA §1056-B, sub-§2, as enacted by PL 1999, c. 729, §8, is amended to read:

2. Content. A report must contain an itemized account of each contribution received and expenditure made aggregating in excess of $100 in any election; the date of each contribution; the date and purpose of each expenditure; and the name of each contributor, payee or creditor. Total contributions or expenditures of less than $500 in any election need not be itemized. The report must state whether the purpose for receiving contributions and making expenditures is in support of or in opposition to the ballot question.

Sec. 7. 21-A MRSA §1056-A, as enacted by PL 1993, c. 715, §3, is repealed.

Sec. 8. 21-A MRSA §1057, as amended by PL 1989, c. 504, §§27 and 31, is repealed.

Sec. 9. 21-A MRSA §1057-A is enacted to read:

§1057-A.__Appointment of treasurer; record-keeping requirements

1.__Appointment of treasurer.__A political action committee required to register under section 1053 shall appoint a treasurer

before accepting contributions or making expenditures. The treasurer shall file all reports required under this subchapter and under section 1019 and shall retain all records of the political action committee required under this subchapter for a minimum of 4 years.

2.__Appointment of deputy treasurer.__A political action committee may appoint a deputy treasurer.__In the absence of the treasurer, the deputy treasurer has the same powers and responsibilities as the treasurer.__The political action committee must report the name and address of the deputy treasurer to the commission no later than l0 business days after the appointment of the deputy treasurer.

3.__Committee expenditures.__Only the treasurer or deputy treasurer may make expenditures on behalf of the political action committee.

4.__Segregated funds.__All funds of a political action committee must be segregated from and may not be commingled with any personal funds of the treasurer, another officer or a member of the committee.__Personal funds of the treasurer, another officer or a member of the committee used to support the committee must be recorded and reported to the treasurer as contributions to the political action committee.

5.__Report of contributions and expenditures.__A person who receives a contribution for the political action committee shall report that contribution to the treasurer within 5 business days of the receipt.

A.__A person who receives a contribution in excess of $10 for the political action committee must report to the treasurer the amount of the contribution, the name and mailing address of the person making the contribution and the date on which the contribution was received.

B.__If the contribution is more than $50, the record of the contribution must include the occupation, employer and business address, if any, of the donor.

6.__Record keeping.__The treasurer of a political action committee shall keep detailed records of all contributions received and of all expenditures that the treasurer makes as provided in this section.__The treasurer shall keep a detailed and exact account of:

A.__All cash or in-kind contributions made to the political action committee, including any contributions by the treasurer, officers, agents and members of the committee;

the date and amount of each contribution; and the name and address of each contributor of more than $10.__The account must include the aggregate amount of all contributions from each contributor for the calendar year;

B.__The name and mailing address and occupation and business address, if any, of each person contributing more than $50 to the political action committee;

C.__All expenditures made to or on behalf of a candidate, campaign or political action committee;

D.__The identity and address of each candidate, campaign or political action committee to whom or on whose behalf a contribution was made and the date and amount of that contribution;

E.__For candidates to whom or on whose behalf the political action committee has made an expenditure, the office sought by each candidate or the district the candidate seeks to represent; and

F.__All expenditures made or authorized by the political action committee, the date and purpose of each expenditure and the name of each payee and creditor.

7.__Other records to be kept.__The treasurer of a political action committee shall obtain and keep:

A.__A receipt or bill for every expenditure made by or on behalf of the political action committee that states the purpose of the expenditure;

B.__All canceled checks and checks rendered in payment of obligations incurred by the political action committee; and

C.__Bank statements containing a record of the political action committee's deposits and expenditures.

Sec. 10. 21-A MRSA §1060, first ¶, as enacted by PL 1985, c. 161, §6, is amended to read:

Contributions and expenditures reported to the commission must be certified by the treasurer for completeness and accuracy. The reports must contain the following information and any additional information required by the commission to monitor the activities of political action committees:

Sec. 11. 21-A MRSA §1060, sub-§4, as enacted by PL 1985, c. 161, §6, is amended to read:

4. Itemized expenditures. An itemization of expenditures The treasurer shall itemize all in-cash or in-kind expenditures made by the political action committee and the date of each expenditure made to support or oppose any candidate, campaign, political committee, political action committee, political party, referendum or initiated petition. The commission may specify the categories of expenditures which that are to be reported and any additional information required to enable the commission to closely monitor the activities of political action committees;

Sec. 12. 21-A MRSA §1060, sub-§6, as amended by PL 1991, c. 839, §30, is further amended to read:

6. Identification of contributions. Names and mailing addresses of contributors who have given more than $50 to the political action committee after the committee has registered under section 1053, the occupation, employer and business address, if any, of each donor, the amount contributed by each donor and the date of the contribution. The information already reported as required by section 1053, subsection 7 should not be duplicated; and

Sec. 13. 21-A MRSA §1061, as amended by PL 1993, c. 695, §36, is repealed.

Sec. 14. 21-A MRSA §1061-A is enacted to read:

§1061-A.__Dissolution of committees

1.__Termination report.__A political action committee shall file a termination report with the commission whenever that committee determines that:

A.__Contributions will no longer be accepted, obligations will no longer be incurred and no further expenditures will be made to any candidate, political committee or political party;

B. The political action committee will not initiate, support, oppose or influence in any way the outcome of a referendum, initiated petition, election or primary;

C.__The political action committee has no outstanding obligations; and

D.__Its assets do not exceed $50.

The termination report must show any contributions or expenditures made by the political action committee from the

completion date of the previous report to the date of termination.__If a termination report is not filed, the political action committee shall continue to file periodic reports as required in this chapter.

2.__Post-campaign reports.__A political action committee with a surplus or deficit in excess of $50 must continue to file reports as required in this subchapter until the surplus or deficit is eliminated.

3.__Disposition of surplus.__A political action committee may dispose of a surplus exceeding $50 only by:

A.__Pro rata distribution to the political action committee's contributors;

B.__A gift to a qualified political party within the State, including any county or municipal subdivision of that party;

C.__An unrestricted gift to the State;

D.__Contributing to one or more candidates registered under section 1013-A or qualified under sections 334, 336, 354 and 355 or to political action committees established to promote the election of those candidates, as long as the amount contributed does not exceed the contribution limits established by section 1015;

E.__Repaying a loan or retiring a debt incurred to defray campaign expenses; or

F.__Making a gift to a charitable or educational organization that is not prohibited for tax reasons from receiving that gift.

Sec. 15. 21-A MRSA §1064 is enacted to read:

§1064.__Civil offenses

If no other penalty for a violation of this subchapter is prescribed, the commission may assess a penalty equal to 3 times the amount of an unlawful contribution or expenditure.

SUMMARY

This bill amends the provisions governing reports by political action committees by:

1. Indicating when changes to a registration form must be reported to the Commission on Governmental Ethics and Election Practices;

2. Changing the penalty from $100 to $200 for violation of the attribution requirements for political action committees;

3. Enacting requirements for the appointment of treasurer and record keeping by the treasurer;

4. Setting up guidelines for the dissolution of a political action committee; and

5. Authorizing the Commission on Governmental Ethics and Election Practices to assess a penalty equal to 3 times the amount of an unlawful contribution for violation of the Maine Revised Statutes, Title 21-A, chapter 13, subchapter IV.