Sec. 1. 39-A MRSA §403, sub-§18 is enacted to read:

18.__Prohibition against using funds for political contributions.__Once deposited into a trust fund created to comply with the requirements of this section, funds and assets may not be withdrawn for the purpose of making a contribution to a political candidate or political action committee required to file a report under Title 21-A, chapter 13, subchapter 2 or 4.

Sec. 2. Bureau of Revenue Services review. The Department of Administrative and Financial Services, Bureau of Revenue Services shall review the tax filings of self-insurers, group self-insurers and their trust funds to determine whether funds removed from a trust fund for the purpose of political contributions prior to the effective date of this Act have been properly accounted for in tax filings.

SUMMARY

This bill prohibits self-insuring employers and employer groups from using workers' compensation trust funds to make contributions to political candidates or political action committees. It also requires the Department of Administrative and Financial Services, Bureau of Revenue Services to review the tax filings related to self-insurer trust funds to determine whether funds removed from the trusts for the purpose of political contributions prior to the effective date of this bill were properly accounted for, for example to determine whether a tax deduction was taken when the funds were deposited and, if so, whether the funds should have been reported as income when removed from the trust fund.