An Act To Require Public Improvement Projects Contractors and Subcontractors To Meet Certain Criteria
Maine Legislature, Session 121, LD 0919
Committee: Labor
Sponsors: DUPLESSIE, HATCH, GERZOFSKY, HUTTON, PATRICK, PINEAU, USHER, EDMONDS

Legislative Document 
No. 919 
H.P.676 
House of Representatives, February 20,2003 
An Act To Require Public Improvement Projects Contractors and 
Subcontractors To Meet Certain Criteria 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative DUPLESSIE of Westbrook. 
Cosponsored by Senator HATCH of Somerset and 
77l~ 
/17. 7I/tu:~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: GERZOFSKY of Brunswick, HATCH of Skowhegan, HUTTON of 
Bowdoinham, PATRICK of Rumford, PINEAU of Jay, USHER of Westbrook, Senator: 
EDMONDS of Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 5 MRSA §I743-D is enacted to read: 
§1743-D. 
Contractor and subcontractor responsibility 
1. 
Requirements 
for 
contractors 
and 
subcontractors. 
A 
contractor 
or 
subcontractor 
performing 
work 
on 
a 
public 
improvement 
project 
subject 
to 
this 
chapter 
must 
meet 
the 
following criteria and the applicable requirements of subsections 
to 5. 
A. 
The contractor or subcontractor must comply with state 
and federal prevailing wage laws by paying the appropriate 
prevailing wage and submitting certified payroll records in 
a timely manner to the public official in charge of 
th_~ 
public improvement project. 
B. 
The 
contractor 
or 
subcontractor 
must 
maintain 
or 
participate in a bona fide apprentice training program for 
each apprenticeable trade or occupation that is represented 
in 
the 
contractor's 
or 
subcontractor's 
workforce 
and 
approved by the Standing Committee on Apprenticeship of the 
Maine Jobs Council under Title 26, section 2006 or other 
state-recognized program. 
C. 
The 
contractor 
or 
subcontractor 
must 
maintain 
comprehensive 
health 
and 
hospitalization 
benefits 
for 
employees 
and 
their 
families, 
at 
that 
contractor 
or 
subcontractor's expense. 
D. 
The 
contractor 
or 
subcontractor 
must 
maintain 
appropriate workers' compensation coverage for all employees. 
E. 
The contractor or subcontractor must properly classify 
employees 
as 
employees 
rather 
than 
as 
independent 
contractors and must treat them as employees for purposes of 
workers' 
compensation 
coverage, 
unemployment 
compensation 
and Social Security taxes and income tax withholding. 
F. 
The contractor or subcontractor must comply with any 
local ordinance or requirement regarding employment. 
2. 
Contractor's certification of intent to comply; proof of 
insurance. 
When a contractor submits a bid to perform work on a 
public 
improvement 
project 
subject 
to 
this 
chapter, 
the 
contractor shall certify in writing and under oath that the 
contractor will comply with the requirements of subsection 1. 
The 
contractor 
shall 
also 
provide 
written 
proof 
that 
the 
Page l-LR1508 (1) 
contractor complies with subsection 1, paragraphs B, C and D to 
the public official in charge of the public improvement project. 
3. 
Subcontractor's certification of intent to comply; proof 
of insurance. 
Before a contractor enters into a contract with a 
subcontractor, 
the contractor must obtain a 
document from the 
subcontractor certifying under oath that the subcontractor will 
comply with the requirements of subsection 1. 
The subcontractor 
shall also provide written proof that the subcontractor complies 
with subsection L 
paragraphs B, 
C and D. 
The contractor shall 
deliver copies of 
the certification and proof to the public 
official in charge of the public improvement project. 
4. 
Failure to provide certification before contract 
~s 
signed. 
A public official may 
not 
award 
a 
contract to 
any 
contractor who fails to comply with subsection 2. 
A contractor 
may not award a subcontract to any subcontractor who fails to 
comply with subsection 3. 
5. 
Failure to comply during term of contract. 
A contractor 
must comply at all times during the term of the contract with the 
requirements of subsection 1 and must weekly certify under oath 
and 
in 
writing 
that 
the 
contractor 
complies 
with 
those 
requirements. 
A subcontractor must comply at all times during 
the term of the contract with the requirements of subsection 1 
and must weekly certify under 
oath and in writing that the 
subcontractor complies with those requirements. 
6. 
Penalties 
for 
failure 
to 
comply 
during 
term 
of 
contract. 
A contractor or subcontractor who fails to comply with 
subsection 
is subject to 
the penalties set forth in this 
subsection, as determined by the public official in charge of the 
public 
improvement 
project. 
A 
contractor 
is 
liable 
for 
noncompliance 
by 
any 
person 
who 
is performing 
work 
under 
a 
subcontract with the contractor. 
A. 
The public official in charge of the public improvement 
project may order the contractor or subcontractor to cease 
work until compliance is attained. 
B. 
The public official in charge of the public improvement 
project 
may 
withhold 
payment 
due 
under 
any 
contract or 
subcontract until compliance is obtained. 
C. 
The public official in charge of the public improvement 
project 
may 
permanently 
remove 
the 
contractor 
or 
subcontractor from the job. 
D. The public official in charge of the public improvement 
project may assess liquidated damages against the contractor 
or subcontractor in the amount of 5% of the dollar value of 
the contract. 
7. 
Disbarment 
from 
future 
work. 
A 
contractor 
or 
subcontractor that has violated any provision of this section is 
barred from performing work on another public improvement project 
for 
months 
for 
the first violation, 
years 
for 
the 
2nd 
violation and permanently for a 3rd violation. 
SUMMARY 
This bill enacts criteria that must be met by any contractor 
or 
subcontractor 
performing 
work 
on 
a 
public 
improvement 
project. 
The bill requires that the contractor or subcontractor 
comply with prevailing wage laws, provide employer-paid health 
and 
hospitalization 
benefits 
to 
employees, 
maintain 
apprenticeship 
programs 
and 
properly 
classify 
employees 
for 
purposes of workers' 
compensation, 
unemployment 
and other tax 
purposes. 
The 
bill 
provides 
penal ties 
for 
contractors 
or 
subcontractors who fail to comply with the requirements of the 
law, including refusal to allow the person to bid on or perform 
work 
on 
future 
projects, 
liquidated 
damages, 
withholding 
of 
payments 
under 
the 
contract 
and 
cessation 
of 
work 
on 
the 
project. 
Contractors 
are 
liable 
for 
noncompliance 
by 
their 
subcontractors.