Editor's note:  This is a draft of legislation that a coalition of citizens, including ReclaimDemocracy.org supporters, successfully worked to introduce in the Maine legislature. It was introduced in spring of 2005 by Rep. Ben Dudley (D-Portland), but was tabled in committee. Please contact us if you would like help adapting this for use in another state or municipality.

Preamble
Whereas, a corporation has the ability to accumulate wealth far greater than any individual Maine citizen, thereby making it possible for corporations to exert an undue and unfair influence over the electoral process in Maine, and

Whereas, a principal reason for this is the fact that a shareholder's personal assets are protected when the corporation is sued, but such is not the case when a natural person engages in commerce, thereby providing corporations with an advantage to accumulate capital more easily than their non-corporate competitors, and 

Whereas, free speech and election rights are protected by Articles I and II of the Maine Constitution's Declarations of Rights, which provides that "a ll people are born equally free and independent," "every citizen may freely speak, write and publish sentiments on any subject" and "every citizen of the United States of the age of 18 years and upwards.shall be an elector," and

Whereas, Maine corporate law states that "an 'individual' means a natural person," and the term "entity" includes "a domestic or foreign business corporation," and

Whereas, a corporation should retain the ability to appear before the state, county and municipal governments of this state, in order to seek to persuade elected officials of the worth of any idea, law or endeavor that they support and to enjoy such other rights as are necessary for it to lawfully conduct its business, and

Whereas, directors and officers of corporations formed under the Maine Business Corporations Laws have heretofore been required by law to manage their corporations in the best interests of the corporation, and

Whereas, this requirement has been found to restrict directors and officers from managing corporations in a manner that fully respects the public interest, and

Whereas, the legislature believes that corporations formed under the laws of Maine should have due respect for and safeguard the environment, human rights, the public health and safety, the welfare of communities in which such corporations operate and the dignity of employees, and

Whereas, the legislature believes that Maine corporations should have a reasonable time to assess their business operations, in order that they might voluntarily come into compliance with the Act without the need for citizen or governmental enforcement actions being initiated, and

Whereas, the legislature further believes that the a corporation should be allowed a reasonable time to remedy its conduct, in order to avoid having to pay monetary damages,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 13-C MRSA §102, sub-~2-B is enacted to read:

2B. Commercial communication. "Commercial communication" means expression that is related to the presentation or sale of a product or service or other commercial transaction.

Sec. 2. 13-C MRSA §102, sub-*11, as enacted by PL 2001, c. 640, Pt. A, §2 and affected by Pt. B, §7, is amended to read:

11. Entity. "Entity" includes a domestic or foreign business corporation; a domestic or foreign nonprofit corporation; an estate; a partnership; a trust; 2 or more persons having a joint or common economic interest; a domestic or foreign unincorporated entity; a municipal corporation and all agencies of a municipal corporation ; a state and all agencies of a state ; the United States and all agencies of the United States ; and a foreign government and all agencies of a foreign government; an association: an organization: a trustee: a trustee in bankruptcy; a receiver; and any other legal representative .

Sec. 3. 13-C MRSA §102, sub-~28, as enacted by PL 2001, c. 640, Pt. A, §2 and affected by Pt. B, §7, is amended to read:

28. Person. "Person" includes an individual and means a human being. "Person" does not include an entity.

Sec. 4. 13-C MRSA §102, sub-~28-A is enacted to read:

28-A. Political speech or activity. "Political speech or activity" means speech or activity that is not commercial communication .

Sec. 5. 13-C MRSA §105, as enacted by PL 2001, c. 640, Pt. A, §2 and affected by Pt. B, §7, is repealed and the following enacted in its place:

§105. Reservation of power

Notwithstanding any law to the contrary. the Legislature may amend or repeal all or part of this Act and any other act relating to domestic and foreign corporations passed on or after March 17. 1831 in the same manner as if an express provision to that effect were contained in the act. the articles of incorporation of a domestic corporation or the application for authority to transact business of a foreign corporation. All domestic and foreign corporations subject to this Act are governed by the amendment or repeal.

Sec.6. 13-C MRSA §~106 and 107 are enacted to read:

§106. Domestic business corporation or foreign business corporation rights

Notwithstanding any law to the contrary. a domestic business corporation or a foreign business corporation has the following rights:

1. Equal protection. The right to equal protection as compared to another domestic business corporation or foreign business corporation but not as compared to a person:

2. Present information: hearing. The right to present information in writing directly to the administrative officer of a public authority that is considering an action that would affect the business interests of the corporation and to appear. pursuant to applicable rules. at a public hearing before such a public authority: and

3. Engage in commercial communication. The right to engage in commercial communication.

§107. Political speech or activity

Notwithstanding any law to the contrary. a domestic business corporation or foreign business corporation may not engage in political speech or activity. This section does not restrict the political speech or activity rights of employees of a domestic business corporation or foreign business corporation. including the employees ' right to donate money to political groups and organizations that are distinct from and not affiliated with, supported. controlled or funded by a corporation.

Sec. 7. Review of use of "person." The Joint Standing Committee on Judiciary shall review the use of the term "person" throughout the Maine Revised Statutes, Title 13-C to ensure consistency of the use of that term with this Act. The committee shall report out by January 15, 2006 any legislation necessary to carry out the intent of this Act.

---

A "Corporate Code for Responsibility" that initially was proposed as part of this bill was broken off into a separate bill.

Resources:

Maine corporate statutes: http://janus.state.me.us/legis/statutes/13/title13ch0sec0.html

Maine election statutes: http://janus.state.me.us/legis/statutes/21-A/title21-Ach1sec0.html

Our resource page on banning corporate contributions to initiative and referenda campaigns

Go to Home Page