An Act To Promote the Public Interest by Providing for Reasonable Rates of Compensation for Forest Products Harvesting and Hauling Services LR 1321(02)
Maine Legislature, Session 121, LD 1318
Committee Amendment CA_A_H440 (House)

COMMITTEE AMENDMENT "/J,, to H.P. 
To Provide Collective Bargaining 
972, L.D. 1318, Bill, "An 
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. I. 26 MRSA c.18 is enacted to read: 
CHAPTER 18 
RATES OF COMPENSATION FOR FOREST 
PRODUCTS HARVESTING AND HAULING SERVICES 
§1351. 
Legislative findings 
The Legislature finds that the harvesting and hauling of 
forest products are performed by numerous loggers and truckers 
who individually are not able to bargain effectively with major 
forest 
landowners. 
The 
inequity 
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 truckers. 
The Legislature finds 
COMMITTEE AMENDMENT 
I} 
COMMITTEE AMENDMENT "('Zi" to H.P. 972, L.D. 1318 
that it is in the public interest to ensure a reasonable rate of 
compensation for harvesting and hauling seryices and therefore 
creates in this 
chapter 
a 
process 
whereby 
the State. 
upon 
request. sets the rates of compensation for such seryices. 
§1352. 
Definitions 
As 
used in this 
chapter. 
unless 
the 
context 
otherwise 
indicates. the following terms haye the following meanings. 
1. 
Association. 
"Association" includes an incorporated or 
unincorporated entity. 
2. 
Board. 
"Board" means the State Board of Arbitration and 
Conciliation created in section 931. 
3. 
Forest landowner. 
"Forest landowner" means 
a 
person 
that owns more than 100.000 acres of forest land in this State or 
the agent or subsidiary of such a person. any of whom is inyolved 
in contracting or negotiating contracts or other arrangements. 
written or oral. 
with forest 
products haryesters 
or 
forest 
products haulers. 
4. 
Forest products harvester. 
"Forest products haryester" 
or "haryester" means a person haying a place of business in this 
State who is engaged in the haryesting of trees from forests in 
the State and performing seryices under a contract. directly or 
indirectly. for a forest landowner. 
5. 
Forest products hauler. 
"Forest products hauler" or 
"hauler" means a pers.on haying a place of business in this State 
who is engaged in the hauling of haryested trees to mills and 
performing seryices under a contract. directly or indirectly. for 
a forest landowner. 
6. 
Person. 
"Person" 
includes one or more indiyiduals. 
partnerships. corporations and associations. 
§1353. 
State role in detenDining rates of compensation: board 
powers and duties 
1. 
Rate 
determinations. 
The 
board. 
upon 
request 
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 seryices' and forest products haryesting seryices in a 
specified area of the State. 
2. 
Board powers and duties. 
For the purposes of carrying 
out its responsibility under this chapter. 
the board has the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'i}:. to H,P, 972, L.D. 1318 
powers set forth in chapter 9, subchapter 2-A. 
The board may 
adopt rules to implement this chapter, including rules specifying 
what 
information held by the board is confidential 
and not 
subject to public disclosure. 
Rules adopted by the board to 
implement this chapter are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A. 
3. 
Compensation: costs of rate determination proceeding. 
Members of the board are entitled to the compensation provided 
for in section 931 for their services under this chapter. 
Costs 
incurred by the board in making a rate determination under this 
chapter 
must 
be 
borne 
equally by 
the parties 
to 
the 
rate 
determination proceeding 
and 
may 
be 
collected by 
the 
board 
pursuant to section 931. 
§1354. 
Participation of harvesters and haulers in the rate 
determination process 
For the purpose of effectively representing their interests 
in rate determination proceedings under this chapter, one or more 
harvesters or haulers may join together and form an association 
to meet, 
confer, 
share information and take other collective 
action as may su,pport their participation in rate determination 
proceedings. 
§1355. 
Negotiations preceding rate determination 
One or more harvesters or haulers may meet and negotiate 
with one or mOre forest landowners on the issue of determining 
reasonable rates to be paid for harvesting services and hau,ling 
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 board. 
§1356. 
Activities are not restraint of trade 
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 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 hau,lers 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 board as provided in section 1358. 
§1357. 
Rate determination petition 
COMMITTEE AMENDMENT 
'1 
COMMITTEE AMENDMENT "H' to H.P. 972, L.D. 1318 
1. 
Who may file petition. 
A forest landowner or a person 
representing at least 3 harvesters or haulers may file a petition 
with the board 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 forest landowner who owns the land on which the 
rates are to apply and the geographic area in which the 
rates are to apply; 
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 board to make a decision. 
E. 
A summary of any negotiations between harvesters and 
haulers and forest landowners; 
and 
F. 
Any other information the board specifically requests. 
§1358. 
Rate determination proceedings 
1. 
Public notice. 
Upon 
receipt 
of 
a 
properly 
filed 
petition. the board shall publish notice in newspapers of general 
circulation in the areas of the State affected by the petition 
filing. 
The board shall also provide notice to any person who 
has reguested 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 board determines that a shorter notice period is required by 
extraordinary circumstances. 
2. 
Written comment: 
bearing. 
The 
board shall solicit 
written 
comment 
from 
persons 
interested 
in 
the 
rates 
of 
compensation for harvesting and hauling services. 
The board may 
also hold a public hearing to collect information and shall hold 
a public hearing if requested by any party to the proceeding. 
3. 
Board decision. 
After the close of the comment period 
and completion of any public hearing on the petition. the board 
shall issue a decision determining reasonable rates for services 
that are the subject of the petition and reasonable geographic 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "fr' to H. P. 972, L.D. 1318 
applicability for the rates, as the board determines appropriate. 
The board'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 board are not stayed 
pending the appeal. 
4. 
Standard 
for 
determining 
reasonable 
rate. 
In 
determining a reasonable rate for harvesting or hauling services, 
the board 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: 
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'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 
position 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: 
1. 
The extent to which hauling is conducted on private or 
public roads: 
J. 
Safety considerations: 
K. 
Prior agreements of the parties: and 
L. 
Other factors that are normally or traditionally taken 
into consideration when determining prices for the services 
involved. 
5. 
Interested board members may not participate. 
A member 
or alternate member of the board who has a financial interest in 
a rate determination proceeding brought before the board, or in 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. f(.. to H.P. 972, L.D. 1318 
any 
party 
to 
the 
rate 
determination 
proceeding, 
may 
not 
participate in the proceeding affecting that financial interest. 
6. 
Limitation 
on petitions. 
Unless 
the 
board'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: right of action 
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 board-determined rate, if 
any, for that service in that geographic area: or 
B. 
Discriminates 
against 
any 
person 
for 
initiating or 
participating in a rate determination proceeding under this 
chapter. 
2. 
Right of action. 
The department or a person who is 
aggrieved by a violation of this chapter may bring an action in 
Superior Court in the county in which the person resides, where 
the 
violation 
occurred 
or 
in 
Kennebec 
County 
to 
seek 
the 
following; 
A. An injunction prohibiting the violation: 
B. 
Damages incurred by the person who brings the action or 
on whose behalf the action is brought as a result of the 
violation: and 
C. 
A penalty egual to 2 times the amount by which the rate 
paid differed from the rate established b¥ the board: and 
D. 
Such other relief as the court determines appropriate. 
§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 by this chapter, as long as 
there is no board-determined rate applicable to the service being 
provided, 
and 
there is 
no 
properly filed rate determination 
petition that would apply to the service pending before the board 
at the time the contract is entered into. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "ff: to H.P. 972, L.D. 1318 
Sec. 
2. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
LABOR, DEPARTMENT OF 
Regulation and Enforcement 
0159 
The 
following 
Initiative: 
Provides 
funds 
for 
one 
Planning 
and 
Research 
Associate II position and related All Other costs associated with 
the rate determination process for forest products hauling and 
harvesting services. 
General Fund 
positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
Labor Relations Board 
0160 
2003-04 
(1. 000) 
$41,900 
3,800 
$45,700 
2004-05 
(1.000) 
$53,400 
1,250 
$54,650 
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 
2003-04 
2004-05 
Personal Services 
$1,350 
$1,350 
All Other 
7,380 
7,380 
General Fund Total 
$8,730 
$8,730 
Other Special Revenue Funds 
2003-04 
2004-05 
Personal Services 
$5,400 
$5,400 
All Other 
27,600 
27,600 
Other Special Revenue Funds Total 
$33,000 
$33,000 
LABOR, DEPARTMENT OF 
DEPARTMENT 1'OTALS 
2003-04 
2004-05 
GENERAL FlJND 
$54,430 
$63,380 
OTBER SPECIAL REVENUE FlJNDS 
$33,000 
$33,000 
DEPARTMENT 1'OTAL -
ALL FlJNDS 
$87,430 
$96,380' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H,P, 972, L.D. 131a 
SUMMARY 
This 
amendment 
replaces the bill. 
Rather 
than allowing 
harvesters 
and 
haulers 
to 
collectively bargain 
with 
forest 
landowners to establish rates of compensation, this amendment 
provides for the State Board of Arbitration and Conciliation to 
establish rates of compensation, based on factors set forth in 
the statute. 
Harvesters and haulers are authorized to form associations 
to participate in the rate determination proceedings. 
Those 
associations may also negotiate with forest landowners prior to 
the rate determination proceeding, but any tentative agreement 
reached in those negotiations must be reviewed and approved by 
the State Board of Arbitration and Conciliation through a rate 
determination proceeding. 
The amendment would not prohibit individual harvesters and 
haulers from negotiating directly and individually with a forest 
landowner, 
but the activities of those persons would not be 
protected from antitrust liability because the State would not be 
reviewing and approving the rates. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Approved: 05/16/03 frac:.. 
Office of Fiscal and Program Review 
LD 1318 
An Act To Promote the Public Interest by Providing for Reasonable 
Rates of Compensation for Forest Products Harvesting and Hauling 
Services 
LR 1321(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
$54,430 
$54,430 
$33,000 
$33,000 
2004-05 
$63,380 
$63,380 
$33,000 
$33,000 
Projections 
2005-06 
$64,965 
$64,965 
$33,000 
$33,000 
Projections 
2006-07 
$66,589 
$66,589 
$33,000 
$33,000 
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 provides General Fund appropriations of $45,700 and $54,650 in fiscal years 2003-04 and 2004-05, 
respectively, for the Regulation and Enforcement program within the Department of Labor for one Planning and 
Research Associate II position and related All Other costs associated with the data collection required to determine the 
rates for harvesting or hauling services. This bill also includes General Fund appropriations of $8,730 in fiscal year 
2003-04 and $8,730 in fiscal year 2004-05 for the per diem and all other costs associated with the activities 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 includes Other Special Revenue Fund allocations of $33,000 in fiscal year 2003-04 
and $33,000 in fiscal year 2004-04 for the Labor Rel~tions Board within the Department of Labor for the costs to the 
State Board of Arbitration and Conciliation associated with the process of rate determination that will be offset by fees 
collected from the interested parties. 
LR1321(2) - Fiscal Note - Page 1 of 1