An Act To Provide Collective Bargaining Rights to Certain Forest Products Workers LR 1321(06)
Maine Legislature, Session 121, LD 1318
Committee Amendment CA_C_H848 (House)
Amends: 26 MRSA §931, 26 MRSA §931-B

COMMITTEE AMENDMENT ,e" to H.P. 972, L.D. 1318, Bill, "An 
Act To Provide Collective Bargaining Rights to Certain Forest 
Products Workers" 
Amend the bill by striking out the title and substituting 
the following: 
'An 
Act 
To 
Promote 
the 
Public 
Interest 
by 
Providing 
for 
Reasonable Rates of Compensation for Forest Products Harvesting 
and Hauling Services' 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the fOllowing: 
'Sec. 1. 26 MRSA §931, first 1[, as amended by PL 1991, c. 798, 
§3, is further amended to read: 
The State Board of Arbitration and Conciliation, in this 
subchapter called the "board," consists of 3 members appointed by 
the Governor from time to time upon the expiration of the terms 
of the several members, for terms of 3 years. 
One member must be 
an 
employer 
of 
labor 
or 
selected 
from 
some 
association 
representing employers of labor, and another must be an employee 
or selected from some bona fide trade or labor union. 
The 3rd 
member 
must represent the public interests of the State and 
serves as chair. Vacancies occurring during a term must be filled 
for the unexpired term. 
Members of the board are entitled to 
receive 
$75 
a 
day for their services for the time actually 
employed in the discharge of their official duties. They are 
COMMITTEE AMENDMENT 
1\.d.i . 
COMMITTEE AMENDMENT 'e:; to H.P. 972, L.D. 1318 
entitled to 
receive their traveling and all other necessary 
expenses. The costs for services rendered and expenses incurred 
by the State Board of Arbitration and Conciliation and any state 
allocation program charges must be shared equally by the parties 
to 
the 
proceedings 
and 
must 
be 
paid 
into 
a 
special 
fund 
administered by the Maine Labor Relations Board. 
Authorization 
for services rendered and expenditures incurred by the State 
Board of Arbitration and Conciliation is the responsibility of 
the Executive Director of the Maine Labor Relations Board. 
All 
costs 
must 
be paid 
from 
that special 
fund. 
The 
executive 
director 
may 
estimate costs 
upon 
receipt of 
a 
request 
for 
services 
and 
collect 
those 
costs 
prior 
to 
providing 
the 
services. 
The executive director shall bill or reimburse the 
parties, as appropriate, for any difference between the estimated 
costs that were collected and the actual costs of providing the 
services. 
Once one party has paid its share of the estimated 
cost of providing the service, 
the matter is scheduled for 
hearing. 
A party who has not paid an invoice for the estimated 
or actual cost of providing services within 60 days of the date 
the invoice was issued is, in the absence of good cause shown, 
liable for the amount of the invoice together with a penalty in 
the amount of 25% of the amount of the invoice. 
Any penalty 
amount 
collected pursuant to this 
prov~s~on remains 
in the 
special fund administered by the Maine Labor Relations Board and 
that fund does not lapse. 
The executive director is authorized 
to collect any sums due and payable pursuant to this provision 
through civil action. 
In such an action, the court shall allow 
litigation costs, including court costs and reasonable attorney's 
fees, 
to be deposited in the General Fund if the executive 
director is the prevailing party in the action. 
The executive 
director shall, annually, on or before July 1st, make a report of 
the activities of the State Board of Arbitration and Conciliation 
to the Governor. 
The board shall from time to time adopt rules 
of procedure 
as it determines necessary. 
including rules of 
procedure 
for 
proceedings 
under 
chapter 
18. 
Rules 
adopted 
pursuant to this section are routine technical rules as defined 
in Title 5, chapter 375. subchapter 2-A. 
Sec.2. 26 MRSA §931-B is enacted to read: 
§93l-B. 
Forest~ rate proceedings panel 
1. 
Membership of forest~ rate proceedings panel. 
There is 
established, under the authority of the board, a forestry rate 
proceedings paneL referred to in this section as "the paneL" to 
conduct proceedings under chapter 18. 
The panel consists of the 
following 3 members: 
A. 
One member representing forest products harvesters and 
forest products haulers, as defined in section 1352; 
COMMITTEE AMENDMENT 
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~. ' 
COMMITTEE AMENDMENT 'U' to H. P . 972, L. D. 1318 
B. 
One member representing forest landowners, as defined in 
section 1352: and 
C. 
One member 
representing the public interests of the 
State. 
2. 
Appointment of members and alternates: 
terms. Members 
serye 
for 
terms 
of 
years 
or until their 
successors 
are 
appointed. 
A vacancy occurring during a term must be filled for 
the unexpired portion of the term. 
Members are appointed as 
follows. 
A. 
The member representing the public interests of the 
State must be the person appointed under section 931 to 
represent the public interests of the State. 
The member 
representing forest products harvesters and forest products 
haulers must 
be 
appointed 
from 
a 
list provided by the 
International 
Loggers 
Association 
or 
a 
successor 
organization. 
The member representing the forest landowners 
must be appointed from a list proyided by the Maine Forest 
Products 
Councilor 
a 
successor 
organization. 
If 
an 
organization named in this subsection ceases to exist and 
does not have a successor, the Governor shall solicit names 
from similar organizations and may appoint any person the 
Governor considers appropriate to represent the appropriate 
interests. 
B. 
The 
Goyernor 
shall 
appoint 
alternate 
members 
to 
represent 
each 
interest 
set 
forth 
in 
subsection 
1, 
paragraphs A and B. 
Alternates representing the public 
interests of the State appointed under section 931 serye as 
alternate members to represent the interests set forth in 
subsection 1, paragraph C. 
Alternate members serve for the 
same terms, have the same responsibilities and duties and 
are entitled to the 
same 
privileges 
and 
emoluments 
as 
members. 
When for any reason a member of the panel does not 
serve in a particular case, an alternate member haying the 
same qUalifications shall act as a member of the panel in 
that case. 
C. 
Members and alternates are subject to restrictions on 
participating in proceedings in which they have a financial 
interest, as provided in section 1358. 
3. 
Costs of proceedings. 
The parties to 
a 
proceeding 
brought under chapter 18 shall share equally in the cost of the 
services rendered and expenses incurred, in the same manner as 
provided 
in section 
931. 
Notwithstanding Title 
5, 
section 
12004-B, subsection L 
the member of the panel representing the 
COMMITTEE AMENDMENT 
". 
d.'8. 
If: 
COMMITTEE AMENDMENT ,G· to H.P. 972, L.D. 1318 
public interests of the State is entitled to $750 a day and the 
other 2 
members of the panel are entitled to $250 a day for 
services for the time actually employed in the discharge of 
duties 
under chapter 18. 
All panel members are entitled to 
travel 
and other expenses, 
in the 
same manner 
as for board 
members under section 931. 
4. 
Appeal of decisions. 
Decisions by the panel under 
chapter 18 constitute final agency action and are subject to 
judicial review pursuant to Title 5, chapter 375, subchapter 7. 
5. 
Applicability 
of 
general 
board 
prov1s1ons. 
The 
provisions of section 931 that are not inconsistent with this 
section, and the provisions of sections 932 and 939, apply to 
panel proceedings under this section and chapter 18. 
Section 
931-A does not apply to such panel proceedings. 
Sec.3. 26 MRSA e.IS is enacted to read: 
CHAPTER 18 
RATES OF COMPENSATION FOR FOREST 
PRODUCTS HARVESTING AND HAULING SERVICES 
§1351. 
Legislative findings 
The Legislature finds that Maine's forest products industry 
is 
a 
vital 
component 
of Maine's 
economy 
and 
has 
a 
direct 
relationship to the economic health and welfare of workers, 
communities 
and businesses. 
Central -to - the viability of the 
forest products industry is a stable workforce of loggers and 
wood haulers available to harvest wood from Maine's forests and 
bring the wood to mills and other wood-using industry. 
The 
erosion of the logger and wood hauler infrastructure in any major 
region of the State can have a serious negative effect on wood 
products manufacturing throughout the State. 
The Legislature 
further finds that, based upon patterns and configurations of 
forest 
landownership. 
the 
harvesting 
and 
hauling 
of 
forest 
products are performed by numerous loggers and truckers who. in 
many cases, are not able individually to bargain effectively with 
forest 
landowners who possess overwhelming market power. 
The 
Legislature finds that such market power exists whenever a forest 
landowner owns, possesses or acquires economic control over more 
than 400.000 acres in a 
labor market area. 
Accordingly. the 
Legislature finds it necessary, in the absence of sufficiently 
vigorous competitive market forces. 
to displace competition as 
provided in this chapter. 
The inegui ty of power in determining 
compensation and the lack of opportunity to join together in 
bargaining over compensation can result in unfair contract rates 
for the services of loggers and wood haulers. 
The Legislature 
COMMITTEE AMENDMENT 
, 
~f$. 
",. 
COMMITTEE AMENDMENT I~ to H.P. 972, L.D. 1318 
finds evidence of unfairness in the fact that contract rates for 
harvesting and hauling services are considerably lower on the 
land of such owners. 
The Legislature finds that it is in the 
public interest to ensure a reasonable rate of compensation for 
harvesting and hauling services and therefore creates in this 
chapter a process whereby the State 
displaces existing market 
forces and, upon reguest, sets the rates of compensation for such 
services. 
§1352. 
Definitions 
As 
used 
in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Affiliated person. 
"Affiliated person" means a person 
in the same corporate system as a parent or member organization 
by virtue of common ownership, control, operation or management. 
2. 
Association. 
"Association" includes an incorporated or 
unincorporated entity. 
3. 
Economic control. 
"Economic control" means the legal 
right, whether through ownership, contract or otherwise, to make 
or influence decisions regarding the harvesting of trees and 
disposition in general of forest products on subject land. 
4. 
Forest land. 
"Forest land" means land used primarily 
for growth of trees to be harvested for commercial use. 
5. 
Yorest landowner. 
"Forest landowner" means: 
A. 
A person that 
owns 
directly or 
through affiliated 
persons, 
or possesses 
economic 
control 
over, 
more 
than 
,·,000 acres in a labor market area; or 
B. 
An 
agent 
or 
subsidiary 
of 
a 
person 
described in 
paragraph A if that agent or subsidiary is involved in 
contracting or negotiating contracts or other arrangements, 
written or oraL with forest products harvesters or forest 
products haulers. 
6. 
Yorest products harvester. 
"Forest products harvester" 
or "harvester" means a person having a place of business in this 
State who is engaged in harvesting trees from forest land in the 
State under a contract or subcontract, directly or indirectly, 
for a forest landowner. 
7. 
Forest products hauler. 
"Forest products hauler" or 
"hauler" means a person having a place of business in this State 
who 
is engaged in hauling harvested trees to mills under 
a 
COMMITTEE AMENDMENT 
.. ,. 
'v~ 
COMMITTEE AMENDMENT .t:r to H.P. 972, L.D. 1318 
contract or subcontract, directly or indirectly, for a 
forest 
landowner. 
8. 
Labor market area. 
"Labor market area" means an area 
designated as such by the United States Department of Labor, 
Bureau 
of 
Labor 
Statistics 
for 
purposes 
of 
implementing 
a 
comprehensive labor market information system. 
9. 
Panel. 
"Panel" 
means 
the forestry rate proceedings 
panel, 
constituted under 
the State Board of Arbitration and 
Conciliation pursuant to section 931-B. 
10. 
Person. 
"Person" includes one or more individuals, 
partnerships, corporations and associations. 
§1353. 
State role in determining rates of compensation; Panel 
powers and duties 
1. 
Rate determinations. 
The panel. 
upon petition made 
pursuant to section 1357 and in accordance with the procedures 
and 
standards 
set 
forth 
in 
this 
chapter, 
shall 
determine 
reasonable rates of compensation to be paid for forest products 
hauling services and forest products harvesting services in a 
specified area of the State. 
2. 
Panel povers and duties. 
For the purposes of carrying 
out its responsibilities under this chapter, the panel has the 
powers of the State Board of Arbitration and Conciliation as set 
forth 
in 
chapter 
9, 
subchapter 
2-A. 
The 
State 
Board 
Qf 
Arbitration and Conciliation as established pursuant to section 
may adopt rules to implement this chapter, including rules 
specifying what information held by the panel is confidential and 
not subject to public disclosure. 
Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
3. 
Compensation; costs of rate determination proceeding. 
Members of the panel are entitled to the compensation provided 
for in section 931-B for their services under this chapter. 
Costs incurred by the panel in making a rate determination under 
this chapter must be borne egually by the parties to the rate 
determination proceeding and may be collected by the Maine Labor 
Relations Board pursuant to section 931. 
§1354. 
Participation of harvesters and haulers in rate 
determination process 
For the purpose of effectively representing their interests 
in contemplated or pending rate determination proceedings under 
this chapter, 2 or more harvesters or haulers may join together 
COMMITTEE AMENDMENT 
.. 'It. 
". 
COMMITTEE AMENDMENT ,~ to H.P. 972, L.D. 1318 
and form an association to meet. confer. share information and 
take other collective action as may support their participation 
in rate determination proceedings. 
§1355. 
Negotiations preceding rate determination 
One or more harvesters or haulers may meet and negotiate 
wi th a forest landowner on the issue of determining reasonable 
rates to be paid for harvesting services and hauling services in 
the State, 
as 
long as any agreement reached by the parties 
regarding rates of compensation is made contingent upon review 
and approval by the panel. 
§1356. 
Actiyities are not restraint of trade 
The provisions of this chapter are intended to displace 
existing market forces based on a legislative finding that such 
forces are insufficient to permit the affected market to function 
normally. 
Activities carried out pursuant to this chapter do not 
constitute a conspiracy, or a combination in restraint of trade 
or an illegal monopoly. nor are they carried out for the purposes 
of lessening competition or fixing prices arbitrarily. as long as 
the activities are carried out for the purpose of preparing. 
initiating or participating in a rate determination proceeding 
under 
this 
chapter. 
A contract 
or 
agreement 
entered 
into 
pursuant to negotiations between a forest landowner and a group 
of harvesters or haulers is not an unlawful restraint in trade or 
part of a conspiracy or combination to accomplish an improper or 
illegal purpose or act, as long as the contract or agreement is 
approved by the panel as provided in section 1358. 
§1357. 
Rate determination petition 
1. 
Who may file petition. 
A forest landowner or a person 
representing at least 3 harvesters or haulers may file a petition 
with the panel to initiate a proceeding to determine reasonable 
rates of compensation to be paid for 
harvesting or hauling 
services. 
2. 
Required contents of petition. 
The 
petition under 
subsection 1 must include the following information: 
A. 
The service for which the rate is to be determined: 
B. 
The 
identity of the 
forest 
landowner 
who 
owns 
or 
possesses economic control over the land on which the rates 
are to apply and the geographic area in which the rates are 
to apply: 
COMMITTEE AMENDMENT 
'\\. d.'8. 
COMMITTEE AMENDMENT ,~, to H.P. 972, L.D. 1318 
c. 
The 
rate, 
if 
any, 
proposed 
by 
the 
filing 
party, 
including any rate agreed to in negotiations between forest 
landowners and harvesters or haulers: 
D. 
Information relevant to the factors set forth in section 
1358, subsection 4 needed for the panel to make a decision: 
E. 
A swnrnary of any negotiations between harvesters and 
haulers and forest landowners; and 
F. 
Any other information the panel specifically requests. 
§1358. 
Rate determination proceedings 
1. 
Public 
notice. 
Upon 
receipt 
of 
a 
properly 
filed 
petition, the panel shall publish notice in newspapers of general 
circulation in the areas of the State affected by the petition 
filing. 
The panel shall also provide notice to any person who 
has requested to be notified of filings. 
Notice must be provided 
at least 30 days before any hearing to be held, and at least 30 
days before the close of a comment periOd on the filing, unless 
the panel determines that a shorter notice period is required by 
extraordinary circumstances. 
2. 
Written 
comment: 
bearing. 
The 
panel 
shall solicit 
written 
comment 
from 
persons 
interested 
in 
the 
rates 
of 
compensation for harvesting and hauling services. 
The panel may 
also hold a public hearing to collect information and shall hold 
a public hearing if requested by any party to the proceeding. 
3, 
Panel decision. 
After the close of the comment period 
and completion of any public hearing on the petition, the panel 
shall issue a decision determining reasonable rates for services 
that are the subject of the petition and reasonable geographic 
applicability for the rates, as the panel determines appropriate. 
The panel's decision is a final agency action for purposes of 
Title 5, chapter 375, subchapter 7 and may be appealed pursuant 
to that subchapter. 
Rates determined by the panel are not stayed 
pending the appeal. 
4. 
Standard 
for 
determining 
reasonable 
rate. 
In 
determining a reasonable rate for harvesting or hauling services, 
the panel shall consider, to the extent relevant, the following 
factors; 
A. 
Prices or projected prices for the harvesting services 
or hauling services currently paid by forest landowners in 
the State and in other states; 
COMMITTEE AMENDMENT 
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~, 
COMMITTEE AMENDMENT ,~ to H.P. 972, L.D. 1318 
B. 
The quantity of forest products available in the market 
area or competing areas: 
C. 
The relationship between the quantity produced and the 
quantity handled by the forest landowner: 
D. 
The harvester's or hauler I s costs, including, but not 
limited to, wages, overhead, fuel, insurance and the cost of 
replacing equipment; 
E. 
Environmental and highway laws or rules: 
F. 
The impact of the rate determination on the competitive 
posi tion of the landowner in the market area or competing 
market areas: 
G. 
A fair return on investment: 
H. 
The species of tree, type of machinery and method of 
tree harvesting involved: 
I. 
The extent to which hauling is conducted on private or 
public roads: 
J. 
Safety considerations: 
K. 
Prior agreements of the parties; and 
L. 
Any factors that are normally or traditionally taken 
into consideration when determining prices for the services 
involved. 
5. 
Interested Panel members may not participate. 
A member 
or alternate member of the panel who has a financial interest in 
a rate determination proceeding brought before the panel, or in 
any 
party 
to 
the 
rate 
determination 
proceeding. 
may 
not 
participate in the proceeding affecting that financial interest. 
6. 
Limitation 
on petitions. 
Unless 
the 
panel's 
rate 
determination 
decision specifies an earlier time. a person may 
not file a petition to change the rate set by that decision until 
one year after the rate determination decision was issued. 
§1359. 
Violation 
1. 
Violation. 
A person violates this chapter if that 
person: 
A. 
Pays a rate for harvesting or hauling services in the 
State other than the applicable panel-determined rate, if 
any, for that service in that geographic area; or 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .~. to H.P. 972, L.D. 1318 
B. 
Discriminates 
against 
any 
person for initiating or 
participating in a rate determination proceeding under this 
chapter. 
2. 
Maine Unfair Trade Practices Act. 
Violation of this 
chapter 
constitutes 
a 
violation 
of 
the 
Maine 
Unfair 
Trade 
Practices Act. 
§1360. 
Other agreements not precluded 
This chapter does not prohibit the negotiation and execution 
of 
a 
contract between 
a 
forest 
landowner 
and 
an individual 
harvester or hauler that provides for the payment of compensation 
rates other than those determined under this chapter, as long as 
there is no panel-determined rate applicable to the service being 
provided 
and 
as 
long 
as 
there is 
no 
properly filed 
rate 
determination petition that would apply to the service pending 
before the panel at the time the contract is entered into. 
Sec. 
4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
LABOR, DEPARTMENT OF 
Labor Relations Board 
0160 
The 
following 
Initiative: 
Provides funds for the per diem and related costs of 
the State Board of Arbitration and Conciliation associated with 
the rate determination process for . forest products hauling and 
harvesting services. 
General Fund 
Personal Services 
All Other 
General Fund Total 
Other Special Revenue Funds 
Personal Services 
All Other 
Other Special Revenue Funds Total 
SUMMARY 
2003-04 
$0 
o 
$0 
2003-04 
$0 
o 
$0 
2004-05 
$900 
3,300 
$4,200 
2004-05 
$12,500 
5,860 
$18,360' 
This amendment is based on a 
legislative finding that a 
forest landowner with economic control of more than 400,000 acres 
in a 
labor market area possesses market power sufficient to 
COMMITTEE AMENDMENT 
, 
~"it. 
't\. 
COMMITTEE AMENDMENT ,~ to H.P. 972, L.D. 1318 
prevent the market for forest products hauling and harvesting 
services from functioning normally. 
The amendment establishes a 
mechanism 
to displace existing market 
forces 
by authorizing 
administrative 
ratesetting 
for 
forest 
products 
haulers 
and 
harvesters providing services to 
landowners 
who 
control such 
acreage. 
The 
amendment 
authorizes 
forest 
products 
haulers 
and 
harvesters to organize associations and to negotiate collectively 
with 
certain 
landowners, 
provided 
their 
activities 
are 
preparatory to and for the purpose of an authorized rate-setting 
proceeding. 
To the extent that their collective activities are 
directed 
toward 
implementing 
authorized 
ratesetting, 
forest 
products 
haulers 
and 
harvesters 
have 
immunity 
from 
federal 
antitrust liability. 
FISCAL NOTE REQUIRED 
(See attached) 
Page ll-LR1321(6) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Approved: 03/30/04 ~ae 
Office of Fiscal and Program Review 
LD 1318 
An Act To Provide Collective Bargaining Rights to Certain Forest 
Products Workers 
LR 1321(06) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$0 
$0 
$0 
$0 
Majority 
2004-05 
$4,200 
$4,200 
$18,360 
$18,360 
Projections 
2005-06 
$4,200 
$4,200 
$18,360 
$18,360 
Projections 
2006-07 
$4,200 
$4,20U 
$18,360 
$18,360 
Correctional and Judicial Impact Statements: 
This bill may increase the number of civil suits filed in the court system. 
Fiscal Detail and Notes 
This bill includes a General Fund appropriation of $4,200 in fiscal year 2004-05 for the per diem and all other costs of 
the State Board of Arbitration and Conciliation related to the rate determination process that may not be directly 
billable to the individual parties. This bill also includes an Other Special Revenue Funds allocation of$18,360 in 
fiscal year 2004-05 for the costs to the State Board of Arbitration and Conciliation related to the rate determination 
process that will be offset by fees collected from the interested parties. Additional costs associated with enforcing 
these provisions under the unfair trade practices act can be absorbed by the Department of the Attorney General. 
LR1321(6) - Fiscal Note - Page 1 of 1