OPLA~Notes
Nonpartisan Quarterly Newsletter



February 1999
Publication of the Office of Policy and Legal Analyis
for the Maine State Legislature
Volume III, Issue 1



In This Issue

Maine Clean Election Act

Did You Know?

Recent Legal Developments
FERC Ruling Affects CMP
Asset Sale


Study Commissions: Findings and
Recommendations


Internet Intersection

OPLA Publications


Newsletter Greetings

Welcome to the first edition of OPLA~Notes for 1999. This edition includes articles that summarize the Clean Election Act, the Federal Energy Regulatory Commission (FERC) ruling affecting the Central Maine Power asset sale, and findings and recommendations of interim study commissions. In addition, this edition also includes our regular features, Internet Intersection, which provides useful web sites, and Did You Know, a section containing facts and trivia about Maine.

In keeping with our nonpartisan status, the articles present the issues with a legislative perspective, but without making judgments or editorializing. We always welcome your comments or suggestions.

The following article is intended to be a summary and dis-cussion of the Maine Clean Election Act. It is not intended to be instructional for candidates for office or lobbyists. For more information on the Act contact: The Commission on Governmental Ethics and Election Practices, 135 State House Station, Augusta, Maine 04333, (207) 287-6219


THE MAINE CLEAN ELECTION ACT

In 1996, a bill initiated by the citizens of Maine entitled, “An Act to Reform Campaign Finance,” came before the 117th Maine State Legislature. On April 1, 1996 the bill died between the House and Senate in nonconcurrence. As a result of that legislative action, the Act was placed on the November 5, 1996 state ballot for a referendum vote. The initiative passed 320,755 to 250,185, thus making Maine the first state in the nation to enact legislation providing for political campaigns that are fully financed using public funds. The Act, codified at 21-A MRSA § 1121 et seq., establishes an alternative campaign financing option be-ginning in the year 2000.

Certification
The Maine Clean Election Act provides candidates for the positions of Governor, State Senator and State Representative the option of having their campaigns publicly financed. To qualify for public financing, a candidate must be certified by the Commission on Governmental Ethics and Election Practices by signing and filing a declaration of intent and then collecting “qualifying contributions” of $5 each from registered voters of the candidate’s electoral division as follows:

· Candidates for Governor must collect at least 2,500 qualifying contributions from verified registered voters for a total of at least $12,500;
· Candidates for State Senator must collect at least 150 qualifying contributions from verified registered voters for a total of at least $750; and
· Candidates for State Representative must collect at least 50 qualifying contributions from verified reg-istered voters for a total of at least $250.

Before becoming certified, candidates can accept private “seed money” contributions of no more than $100 per individual, limited to $50,000 for gubernatorial candidates, $1,500 for Senate candidates and $500 for House candidates. The primary purpose of seed money contributions is to enable a potential participating candidate to collect qualifying contributions. Seed money may not be further collected or spent by the candidates once they are certified, but must be deposited to the Clean Election Fund. Once certified, a candidate may not accept contributions from private sources to fund his or her campaign, except under limited circumstances described below; the campaign will be funded solely from the Clean Election Fund.

Distribution
The Commission will distribute funds to participating candidates from the Maine Clean Election Fund. The amount distributed to a certified candidate to finance a campaign will be equal to the average amount of campaign expenditures for the same type of election for the preceding two elections. This formula applies to both contested and uncontested primary and contested general elections. If there is not enough electoral information from the past two elections, information from the most recent election will be used to determine distribution. Any unspent campaign funds must be returned to the Clean Election Fund. The Commission on Governmental Ethics and Election Practices, which admin-isters the fund, may not distribute amounts in excess of what is contained in the Clean Election Fund. If the amount to be distributed exceeds the amount in the fund, the commission will allow candidates for Governor to accept contributions aggregating no more than $500 per contributor and candidates for House or Senate seats may accept contributions aggregating no more than $250 per contributor.

If a participating candidate is being outspent by a non-participating candidate, the Commission will provide the excess expenditures to the participating candidate not to exceed two times the original amount distributed.

Sources of Funding

The sources of funding for the Clean Election Fund are:

· All qualifying contributions;
· Two million dollars of revenues from state income and sales taxes to be transferred to the Fund annually;
· Seed money contributions remaining after a candidate has been certified;
· Fines collected from violations of the Act;
· Voluntary donations made to the fund;
· Revenues generated from a tax checkoff program that allows a person filing a Maine income tax return to designate that $3 be paid into that fund;
· Funds that remain unspent after distribution to certified candidates; and
· Funds returned by a certified candidate who withdraws as a candidate from an election.

Lobbyist Fees
The Act also increased registration fees required to be paid by lobbyists. Previously, lobbyists fees were $200 per lobbyist and $100 per lobbyist associate, and ac-crued to the General Fund. The Act increased these fees to $400 and $200, respectively. The additional $200 and $100 (half of the fees) are to be dedicated to the Commission on Governmental Ethics and Election Practices to cover costs of administering the lobbyist registration program. A lawsuit challenging the lobbyist registration fee has resulted in the temporary suspension of the increase, as discussed later in this article.

Federal Court Cases
Prior to the 1998 election, two lawsuits challenging the Constitutionality of the Act were filed in federal court. Parties to the suits included the National Right to Life Committee, the Maine Civil Liberties Union, and legislative candidates. The plaintiffs in the suits alleged that the Act violated the First Amendment right to free speech and asked the court to overturn the Act. District Court Justice D. Brock Hornby dismissed the relevant counts for lack of ripeness. Since none of the plaintiffs could be injured by the Act until after the 1998 general election, a ruling on the merits of the case would be premature. Other counts were dismissed for lack of standing.

The plaintiffs in those cases refiled their cases in federal court in 1998, and those cases are still pending.

State Court Cases
A separate suit brought by the MCLU and the Maine Campground Owners’ Association in the Maine Supe-rior Court challenges the lobbyist registration fees. Pending a decision in that suit, the Superior Court has issued a preliminary injunction with the consent of the parties. The court ordered that the Commission may not collect lobbyist registration fees in excess of $200 for lobbyists and $100 for lobbyist associates. This injunction took effect on December 1, 1998. Until further court or legislative action occurs, the fees collected will go directly to the dedicated lobbyist fee account, which is used to pay for administrative costs related to the processing of lobbyist registrations. Fees collected by the Commission prior to this injunction in excess of the $200 and $100 amounts are being refunded by the Commission.

Other States’ Initiatives

Maine is the first state in the nation to pass such a comprehensive plan to establish a voluntary system of campaign finance intended to “clean up” the election process and even the playing field among candidates for gubernatorial and state legislative offices. Some other states are using the Maine Clean Election Act as a model for their own proposals for campaign finance reform.

· Arizona is considering Proposition 200 “An Act Relating to Campaign Finance Funding and Reporting System.” This Act establishes a five-member commission to administer a system which provides public funding and additional reporting requirements for participating candidates and reduces current contribution limits by 20 percent for non-participating candidates.

· Massachusetts has proposed a similar measure to Maine’s law which would create a voluntary system allowing candidates for state offices who agree to spending limits and $100 campaign contributions to receive a specific amount of public funds for their campaigns beginning with the 2002 election.

· Illinois is considering a number of campaign finance reform proposals, including several based on Maine’s Clean Election Act. These measures are being introduced in the wake of a campaign finance scandal involving Governor Jim Edgar and an executive of Management Services Inc., a corporation which was awarded a public aid contract after contributing to the Governor’s campaign.


Did You Know? (interesting facts about Maine)



Recent Legal Developments

FERC Ruling Affects CMP Asset Sale

In October 1998, the Federal Energy Regulatory Commission (FERC) issued two rulings in which it disapproved of New England Power Pool (NEPOOL) rules regarding access of generators to the New England electric transmission system (grid).

The FERC found that NEPOOL's method of assessing whether a new generation unit requires an expansion of the transmission grid was based on faulty assumptions and produced inaccurate and unreliable estimates of transmission expansion costs. The FERC stated that grid access procedures needed to be more consistent and that there should be a single application process that is fair and reasonable for all competitors (existing generators and new generators alike). The FERC indicated that it felt that the NEPOOL rules provided an unfair advantage to existing generators. The FERC indicated that the elimination of this advantage was essential to creating effective competition in the New England energy market. The FERC directed NEPOOL to file a new methodology by March 31, 1999.

FPL Group, a Florida-based entity that has contracted to purchase Central Maine Power’s (CMP) generation assets (under the electric restructuring law, CMP is required to sell its generation assets), has filed suit in New York. The suit claims that the FERC ruling “prevents FPL Energy Maine from having the same unconstrained access to the NEPOOL (transmission facilities) that CMP had always enjoyed” and that, as a consequence, CMP cannot deliver under the contract what FPL claims it bargained for: “operation of the CMP assets in a manner that is substantially consistent with CMP’s historic operation of the assets.”

The Maine Public Utilities Commission (PUC) and the FERC have both approved the sale of the assets by CMP to FPL. In its approval of the sale, the FERC suggested that FPL would acquire and be entitled to maintain CMP’s existing access to the grid. FPL has stated that FERC’s comment “does not rectify the effect of FERC’s October order reversing the New England Power Pools rules that assured that the operations of existing generators would not be materially and adversely affected by new generators.” As of early January, FPL was continuing to maintain its court action seeking release from the contract.

While CMP has publicly supported the maintenance of the NEPOOL rule which the FERC disapproved, CMP vigorously opposes FPL’s action and maintains that the purchase and sale agreement is not contingent on the maintenance of the NEPOOL rule and that regulatory rule changes such as this are to be expected in the context of the on-going, massive restructuring of the electricity market.



Interim Study Commissions: Findings and Recommendations

During the interim between the 2nd Special Session of the 118th Legislature and the First Regular Session of the 119th Legislature, the Legislature authorized a number of studies. The following are summaries of the findings and recommendations made by study commissions that involved significant legislative participation and have concluded their work.


Commission to Examine Rate Setting and the Financing of Maine’s Long-term Care Facilities

The 118th Maine Legislature established the Commission to Examine Rate Setting and the Financing of Maine’s Long-term Care Facilities in 1997. The commission met 15 times during its work over two interim sessions and was chaired by Mr. Joseph Kozak. The commission considered the following issues: nursing facility reimbursement by Medicare; Medicaid, insurance and private pay sources; the Medicaid Principles of Reimbursement; rate setting, rate equalization; the financial health of the nursing facility industry; employment issues; financial assistance from the Maine Health and Higher Educational Facilities Authority; quality of nursing facility care; minimum staffing requirements; paperwork reduction initiatives; and interaction with consumers and families.

The Commission made the following recommendations;


Commission to Study Providing Educators with More Authority to Remove Violent
Students from Educational Settings


The Commission to Study Providing Educators with More Authority to Remove Violent Students from Educational Settings was established in the Second Special Session of the 118th Legislature by Resolve 1997, chapter 119. The Commission was convened on October 5, 1998, and was co-chaired by Sen. Mary Cathcart and Rep. James Skoglund. The Commission’s 17 members included individuals representing the Legislature, executive branch agencies, teachers, superinten-dents, school boards, principals, parents and students. The Commission was charged with studying the establishment and the effectiveness of district-wide school disciplinary policies and practices in the State and developing a plan to address the growing concern of violence in the public schools.

The Commission came to two major conclusions regarding the incidence of disruptive and violent student behavior in Maine public schools: first, that teachers, school personnel, school officials and students themselves are faced with a wide range of disruptive and violent student conduct, including gross misconduct and threatening behavior that is serious in nature; and second, that some Maine school officials and communities currently use a variety of effective prevention and intervention strategies and practices to address disruptive and violent student behavior.

The Commission made the following recommendations:


Committee to Review the Governance Structure of the Governor Baxter School for the Deaf

In 1996, the Maine Legislature enacted a law that shifted authority to govern operations of the Governor Baxter School for the Deaf from the Maine Department of Education (DOE) to a newly-created School Board at the Baxter School. As part of that law, the Education and Cultural Affairs Committee was directed to establish a study committee to review the transition to the new governance structure and to report back to the Education Committee by December 15, 1998. The Education Committee established the Committee to Review the Governance Structure of the Governor Baxter School for the Deaf (Governance Review Committee), a 20-member committee chaired by Representative Elizabeth Watson.

The Committee made the following recommendations:


The Joint Select Committee to Implement a Program for the Control, Care and
Treatment of Sexually Violent Predators


The Joint Select Committee to Implement a Program for the Control, Care and Treatment of Sexually Vio-lent Predators was created by the 118th Maine Legislature through Joint Order, House Paper 1653. The Committee’s charge was to develop a plan for the control, care and treatment of sexually violent predators. The Committee was comprised of 13 Legislators and was co-chaired by Sen. Robert Murray Jr. and Rep. Richard Thompson. The members consulted with the Department of Corrections, the Department of the Attorney General and the Department of Mental Health, Mental Retardation and Substance Abuse Services, as well as other agencies, attorneys and other members of the public.

The Joint Select Committee made the following recommendations:


Joint Select Committee on Research and Development

The Joint Select Committee on Research and Development was created by the 118th Maine Legislature to review legislation relating to research and development and report its finding and recommendations to the Legislature. The commission was comprised of 12 legislators and was co-chaired by Sen. Mary Cathcart and Rep. G. Steven Rowe.

In developing its recommendations, the committee focused on three broad areas of need to be addressed in order to attract and retain research and development activity in the State: a need for research and development infrastructure; a need for an educated and technically skilled workforce; and a need for business assistance. Based on these needs and the current programs and initiatives in place to support research and development in Maine, the committee made the following recommendations:

Research and Development Infrastructure

Educated and Technically Skilled Workforce


Business Assistance


Special Commission on Financial Services Taxation

The Special Commission on Financial Services Taxa-tion was established on July 31, 1998 by order of the President of the Senate and the Speaker of the House of Representatives. The Commission was charged with reviewing Maine’s tax laws applicable to entities that provide financial services in this State and making recommendations to ensure that Maine’s tax structure is fair and equitable and to ensure that the State is competitive with other states in attracting and maintaining financial services businesses. Three Senate members and seven House members who serve on the Joint Standing Committee on Taxation, the Joint Standing Committee on Banking and Insurance or the Joint Standing Committee on Business and Economic Development were appointed to the Commission. The Commission was chaired by Senator Lloyd LaFountain III and Representative Bonnie Green.

The Commission coordinated its efforts with a task force appointed by Governor Angus S. King, Jr. called the Financial Services Taxation Advisory Group (Advisory Group). Members of the Advisory Group included the State Tax Assessor who chaired the group; the Commissioner of Professional and Financial Regulation; representatives of the banking, insurance and investment industries and other providers of financial services; representatives of the legal and accounting professions; and representatives of the general public. The Commission and the Advisory Group focused on specific areas where changes to the tax laws could make an impact on the inequities in the taxation of participants in the financial services industry.

The Special Commission made the following recommendations:

Select Commission to Study the Opening of a Discount State Liquor Store in Fort Kent

The Select Commission to Study the Opening of a Dis-count Liquor Store in Fort Kent was established by Public Law 1997, chapter 755. That law directed a 13-member commission to explore the feasibility and benefits of locating a discount state liquor store in Fort Kent. The Commission was composed of three members of the Senate, 10 members of the House of Representatives, the Director of the Bureau of Alcoholic Beverages and Lottery Operations, and two business people from Fort Kent. The commission was co-chaired by Senator Judy Paradis and Representative Joseph Driscoll.

The Select Commission to Study the Opening of a Dis-count State Liquor Store in Fort Kent made the following recommendations:


Task Force to Study the Need for an Ombudsman for the Department of Human Services and the
Department of Mental Health, Mental Retardation and Substance Abuse Services


The Task Force was convened on October 20, 1998 and was chaired by Representative Elaine Fuller. The Task Force consisted of members representing the Legislature; children; women; the elderly; low-income families; persons with developmental disabilities; consumers of substance abuse services; persons with mental illness; the Medicaid managed care ombudsman program; and the Long-term Care Ombudsman program.

The Task Force made the following recommendations for the Department of Human Services (DHS):


The Task Force made the following recommendations for the Department of Mental Health, Mental Retardation and Substance Abuse Services (MHMRSAS):


The Task Force made the following recommendations for both DHS and DMHMRSAS:


In addition to the interim studies described above, the Joint Select Committee on Substance Abuse met during the summer and fall. The Committee’s charge was to review issues related to substance abuse, to determine how to address these issues in a coordinated fashion, and to recommend changes in policies which affect substance abuse prevention and treatment. For more information about the Joint Select Committee’s report, please contact the Office of Substance Abuse at 207-287-2595.



Internet Intersection


What Are “Cookies”?

Cookies are a message given to a Web browser by a Web server. The main purpose of cookies is to identify users and possibly prepare customized Web pages for them. When you enter a Web site using cookies, you may be asked to fill out a form providing such information as your name and interests. This information is packaged into a cookie and sent to your Web browser which stores it for later use. The next time you go to the same Web site, your browser will send the cookie to the Web server. The server can use this information to present you with custom Web pages. So, for example, instead of seeing just a generic welcome page you might see a welcome page with your name on it. The browser stores the message in a text file called cookie.txt. The message is then sent back to the server each time the browser requests a page from the server. The name cookie derives from UNIX objects called magic cookies. These are tokens that are attached to a user or program and change depending on the areas en-tered by the user or program.

Policy and Government

New Jersey Law Network: Despite its name, the New Jersey Law Network does not confine its scope to that state. Visitors will find a well-organized collection of links to text of laws, law schools, professional organizations, courts, government, and other sites dealing with law both in and outside of New Jersey. The U.S. Law by Topic section offers a list of sites in categories ranging from arbitration and consumer law to law journals and newspapers. http://www.njlawnet.com/

Government Information Xchange: A comprehensive site providing links to federal, state, local, foreign and international government information. The site includes both a search feature and a topic menu. http://www.info.gov/

Thomas: Federal legislation from 1973 to present, as well as links to other governmental information. http://thomas.loc.gov/

Maine State Legislature: The State of Maine statutes, including laws passed in 1998, are available through the Legislature’s homepage. The website also includes access to current bill text, amendments and final disposition information. http://www.maine.gov/legis

Technology

Multi-Engine Search Tool--MyGo: Allows simultaneous searches on eighteen of the Web’s most popular search tools. Multi-engine search tools eliminate the need to input separate queries in each engine. http://www.mygo.com

News

American Journalism Review Newslink: A comprehensive site providing links to state, national and international newspapers. This site also includes a search feature by a newspaper’s name or location. http://ajr.newslink.org/news.html

General Interest

The Old Farmer’s Almanac: This well-known publication provides fun and practical information for everyday life, including moon calendars, planting charts, recipes, weather predictions, quotes of the day and historical tidbits http://www.almanac.com/


OPLA PUBLICATIONS

A listing of study reports of legislative committees and commissions categorized by year is available from OPLA. For printed copies of any of these publications, please contact the Office of Policy and Legal Analysis at 13 State House Station, Augusta, Maine 04333 (287-1670) or stop by Rooms 101/107 of the State House. Intital copies are available at no charge. Additional copies of the publications are available at nominal cost. In addition, many of the legislative studies staffed by OPLA during the 117th and 118th Legislature are available on the OPLA website at:
http://www.maine.gov/legis/opla

The following current publications are now available:


The Office of Policy and Legal Analysis (OPLA) is a nonpartisan office of the Maine State Legislature. It operates under the auspices of the Legislative Council. The office provides professional staff assistance to the joint standing and select committees, including provision of policy and legal research and analysis, coordination of the committee process, drafting of bills and amendments, statutory analysis of budget bills in cooperation with the Office of Fiscal and Program Review and preparation of legislative proposals, reports and recommendations. Following is the mission of the office:

OPLA Mission

The Office of Policy and Legal Analysis assists, in a nonpartisan and responsive manner, the Maine Legislature, its committees and its members in fulfilling the Legislature’s mission by providing objective information, impartial legal and policy analysis, and assisting in formulating and drafting legislative proposals, reports and recommendations.

OPLA~Notes

Published for the Maine State Legislature by the Office of Policy & Legal Analysis
David E. Boulter, Director
Editor: Darlene Shores Lynch, Sr. Researcher
Contributors: Danielle Fox, Legislative Analyst and Jon Clark, Esq., Legislative Analyst
We welcome your comments and suggestions.
Contact the Office of Policy and Legal Analysis by writing to 13 State House Station, Augusta, Maine 04333; calling 287-1670; or stopping by Rooms 101/107/135 of the State House.