An Act to Support Domestic Businesses in Publicly Funded Construction Projects LR 1599(02)
Maine Legislature, Session 121, LD 0608
Committee Amendment CA_A_S386 (Senate)

COMMITTEE AMENDMENT "A" 
Act 
to 
Support 
Domestic 
Construction Projects" 
to S.P. 217, L.D. 608, Bill, "An 
Businesses 
in 
Publicly 
Funded 
Amend the bill in section 1 in that part designated "§1754." 
by striking out all of the first line (page 1, line 5 in L.D.) 
and inserting in its place the following: 
'§1754. 
Bids by domestic stee1 fabricators' 
Further amend the bill in section 1 in that part designated 
"§1754." in the first paragraph in the 3rd line (page 1, line 9 
in L.D.) by striking out the following: "manufacturers and" and 
inserting in its place the following: '~' 
Further amend the bill in section 1 in that part designated 
"§1754." in the first paragraph in the 4th line (page 1, line 10 
in L.D.) 
by 
inserting after 
the 
following: 
"contracts" 
the 
following: 'involving state funds' 
Further amend the bill in section 1 in that part designated 
"§1754." by striking out all of subsections 1 and 2 (page 1, 
lines 
to 
in L.D.) 
and inserting in their place the 
following: 
'1. 
Competitive bids. 
Notwithstanding sections 1743 
and 
1743-A. 
a 
domestically fabricated structural or miscellaneous 
steel 
product 
is 
considered 
of 
comparable 
cost 
to 
a 
foreign-fabricated structural or miscellaneous steel product if 
the cost of the domestic product is within 15% of the cost of the 
Page l-LR1599(2) 
COMMITTEE AMENDMENT 
·:i~~/ 
COMMITTEE AMENDMENT 'A" to S.P. 217, L.D. 608 
foreign-fabricated 
product. 
For 
purposes 
of 
this 
section, 
"domestically 
fabricated 
structural 
or 
miscellaneous 
steel 
product" means a product substantially fabricated in the United 
States. 
2. 
Rules. 
The Department of Administrative and Financial 
Services may adopt rules to implement this section, including 
establishing a definition for "substantially fabricated" and a 
process for certifying where the fabrication is substantially 
done. 
Rules adopted pursuant to this subsection are routine 
technical rules as defined in chapter 375, subchapter 2-A.' 
Further amend the bill by inserting after section 1 the 
following: 
. Sec. 
2. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE ABD FINANCIAL SERVICES, DEPAR1:MENT OF 
following 
Bureau of General Services -
Capital Construction & Improvement 
Reserve Fund 
0883 
Initiative: 
Appropriates funds for one Engineer Technician IV 
position and the estimated increase in total construction costs 
resulting from this proposed preferential treatment. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
SUMMARY 
2003-04 
(0.000) 
$0 
o 
$0 
2004-05 
(1.000) 
$59,231 
566,000 
$625,231' 
This amendment is the majority report. 
It limits the scope 
of 
the 
preference 
for 
domestic 
supplies 
to 
structural 
and 
miscellaneous 
steel 
fabrication 
products. 
The 
amendment 
clarifies that the 
15% price preference applies to projects 
involving state funding. 
It also 
removes 
language regarding 
source disclosure and authorizes the Department of Administrative 
and Financial Services to adopt routine technical rules defining 
"substantially 
fabricated" 
and 
establishing 
a 
process 
for 
certifying where the steel fabrication is done. 
It also adds an 
appropriations and allocations section. 
FISCAL NOTE REQllRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings): 
General Fund 
?propriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Revised: 02/04/04 wac:.. 
Office of Fiscal and Program Review 
LD608 
An Act to Support Domestic Businesses in Publicly Funded Construction 
Projects 
LR 1599(02) 
Fiscal Note for Bill as amended by Committee Amendment W' 
Committee: State and Local Government 
n 
Fiscal Note Required: Yes 
Minority Report 
Fiscal Note 
2003-04 
2004-05 
$0 
$625,231 
$0 
$625,231 
Projections 
2005-06 
$640,862 
$640,862 
Projections 
2006-07 
$656,883 
$656,883 
To give preferential treatment to certain domestic steel fabricators whose bids are within 15% of a bid of a foreign 
supplier will result in increased costs to the Department of Administrative and Financial Service's public improvement 
construction projects of $625,231 in fiscal year 2004-05, $640,862 in fiscal year 2005-06 and $656,883 in fiscal year 
2006-07. This estimate is based on the proposed preferential treatment providing at least a 2% increase to total 
construction project expenditures ($28 million in fiscal year 2001-02). In addition, it is anticipated that this bill will 
also require an Engineer position at a total cost of $65,231 in fiscal year 2004-05 to handle the additional 
responsibilities resulting from this legislation. 
This legislation may also increase the construction and planning costs of a State Board of Education funded Major 
Capital Improvement project such as the construction of a new school or renovations to an existing school. Although 
the impact for fiscal years 2003-04 and 2004-05 can not be determined at this time, the Department estimates that, had 
this requirement been in place for the $155,000,000 in school construction projects administered in the 2001-2002 
rating cycle, it would have resulted in additional costs of approximately $523,125, or approximately $261,563 in each 
fiscal year. The actual cost to the Department will depend on the amount of school construction funds made available 
in each 2 year cycle. However, because debt service costs associated with funding school construction projects can 
not exceed the annual levels established in 20-A MRSA § 15905, a decrease in the total number of projects may be 
required in order to stay within the spending limits. If all planned projects are to be undertaken the debt service limit 
may need to be raised. 
School administrative units who have major construction or renovation projects will also incur additional costs 
associated with this requirement. The impact to the individual school administrative units can not be determined at 
this time