An Act To Strengthen the State Purchasing Code of Conduct Laws
Maine Legislature, Session 122, LD 1769
Committee: State and Local Government
Sponsors: ROTUNDO, EDMONDS, BARSTOW, CUMMINGS
Amends: 5 MRSA §1825, 5 MRSA §1825-L, 5 MRSA §1825-N, 5 MRSA §1825-Q, 5 MRSA §1825-S

Legislative Document 
No. 1769 
S.P.686 
In Senate, December 30, 2005 
An Act To Strengthen the State Purchasing Code of Conduct Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Received by the Secretary of the Senate on December 28,2005. Referred to the Committee 
on State and Local Government pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401. 
Presented by Senator ROTUNDO of Androscoggin. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senator: President EDMONDS of Cumberland, Representatives: BARSTOW 
of Gorham, CUMMINGS of Portland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
UHA 
Sec. A·I. 5 MRSA §1825·K, as enacted by PL 2001, c. 439, Pt. 
NNNN, §1, is repealed and the following enacted in its place: 
§l825-K. Application ~ate purchasing code of conduct to 
certain bicl(l.JtDL1i~eki~ __ contracts as part of competitive 
bid process: affidavit required 
1. 
Application. 
Thi s 
subchapter applies to competitive 
bids 
for 
sale of apparel, 
footwear 
or textiles pursuant to 
subchapter I-A. 
... 
2,-!!,_--""D""e,-"f,-"i""JU.~·"-,t..."i",o",n...,s ...... 
"-----,-A"-,s"---"u,-"s,-,,e,-,d,,----,,,i,-,,n,---",,,t",h,"",i,-"s~-",s-",u""b",c±h~a~p"-,t.-"e<-Jr,-",---"u~nbI~ei<..!s~s~-",,the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Code of 
conduct that 
I825-L. 
condu~-",-t_" ----=m""e.ans 
the state purchasing 
follows 
the principles set out in 
coQe...ot 
section 
B. 
"Independent 
monitor" 
means 
a 
not-for-profit 
organization that is neither funded nor controlled, in whole 
or in part. by businesses that sell or manufacture apparel, 
footwear or textiles. 
J--L---~lability of 
cop-Y-..-2~Q!ie of 
co~duct. 
The Stat!'! 
Purchasing Agent shall make a copy of the state purchasing code 
of conduct available to all bidders subject to this subchapter. 
4. 
Affidavit requireqlent. 
The State Purchasing Agent may 
not accept a bid for the sale of goods covered by this subchapter 
unless: 
A. 
Prior to the close of the bidding deadline, the bidder 
has filed with the agent a signed affidavit. executed .~1l0 
filed by a person authorized to commit the bidder to the 
code of conduct, stating: 
(I) 
That the bidder will comply with the code of 
conduct: 
(2) 
That the bidder has furnished a copy of the code 
of conduct to each supplier at the point of assembly of 
the goods subject to the bid process and required that 
each supplier inform the bidder of whether the supplier 
is in compliance with the code of conduct: and 
Page I-LR2955(1) 
(3) 
That, to the best of the bidder's knowledge, each 
supplier at the point of assembly of the goods subject 
to the bid process is in compliance with the code of 
conduct; and 
B. 
The 
bidder 
has 
submitted 
a 
list of 
the 
names 
and 
addresses of suppliers at the point of assembly of goods 
subject to the bid process. 
5. 
Affidavit update requirement. 
If, after complying with 
the filing requirements of this section, a bidder is awarded a 
contract, that contractor must, during the term of the contract, 
PImnptly inform the State Purchasing Agent of any change in the 
information furnished in the affidavit submitted at the time of 
the original bid and must submit a new, updated affidavit that 
confor'ms with the requirements of subsection 4. 
Sec. A-2. 5 MRSA §1825-L. sub-§3. as enacted by PL 2001, c. 
439, Pt. NNNN, §1, is repealed. 
Sec. A-3. 5 MRS A §1825-M, as enacted by PL 2001, c. 439, Pt. 
NNNN, §l, is repealed. 
Sec. ~-4. 5 MRSA §1825-N. first 1[, as enacted by PL 2001, c. 
439, Pt. NNNN, §l, is amended to read: 
The State Purchasing Agent shall provide to bidders 
and 
~Rese --wh€>---aa,lo'e -.£>e.e.i:l- -awa-roed-- €eR~!;ae~S .Q..ontractor s resources to 
assist with compliance with the state purchasing code of conduct 
established in this subchapter. 
These resources must include a 
list, easily accessed by the public, of bidders and vendors who 
have adopted the state purchasing code of conduct. 
Sec. A-5. 5 MRSA §1825-Q is enacted to read: 
§1825-Q. 
Complaints of nonco~~iance with code of conduct; 
investigations of complaints 
1. 
Complaints alleging noncompliance. 
The State Purchasing 
Agent shall initiate an investigation to determine whether 
a 
violation of the code of conduct has occurred if: 
A. 
The State Purchasing Agent has independent knowledge 
that a contractor or a supplier at the point of assembly of 
goods subject to a contract is not in compliance with the 
code of conducti 
B. 
The contractor informs the State Purchasing Agent that 
the contractor or a supplier at the point of assembly of 
goods subject to a contract is not in compliance with the 
code of conduct: 
C. 
A worker for a contractor or for a supplier at the point 
of assembly of goods subject to a contract files a written 
complaint directly with the State Purchasing Agent stating 
that the contractor or supplier, to the best of the wor~ 
knowledge, is not in compliance with the code of conduct; 
D. 
A 3rd party established and based outside the United 
States, on behalf of or on the basis of information from a 
worker or workers, files directly with the State Purchasing 
Agent a signed and dated written complaint stating that, to 
the best of the 3rd party's knowledge, 
a contractor or a 
supplier at the point of assembly of goods subject to a 
contract is not in compliance with the code of conduct. 
If 
possible, the 3rd party's written complaint be signed and 
dated under oath before an official authorized to administer 
oaths: or 
E. 
A 3rd party established and based in the United States, 
on behalf of or on the basis of information from a worker or 
workers, files directly with the State Purchasing Agent a 
written complaint. signed and dated under oath before an 
official authorized by applicable law to administer oaths, 
stating that. to the best of the 3rd party's knowledge, 
a 
contractor or a supplier at the point of assembly of goods 
subject to a contract is not in compliance with the code of 
conduct. 
2. 
Specificity required. 
Any complaint made to the 
Stat~ 
Purchasing Agent 
must state with reasonable specificity each 
reason a party subject to the complaint is allegedly not in 
compliance with the code of conduct. 
3. 
Notification to -1tarty 
sJlJri-ect 
to complaint. 
After 
receiving a 
complaint alleging noncompliance with the code of 
conduct, the State Purchasing Agent shall contact in a timely 
manner, in writing and by certified letter, the contractor that 
is the subject of the complaint or whose supplier is the subject 
of the complaint. 
Sec. A·6. 5 MRSA §1825.R is enacted to read: 
S1825 R. 
Determinations of noncompliance with code of conduct 
4.6 
-",l,-"-._-=R"",e-""l"",ec.Lv~t 
information. 
In making 
a 
determination of 
whether a violation of the code of conduct has occurred, the 
State 
Purchasing 
Agent 
may 
take 
into 
account 
any 
factors, 
information, 
sources 
of 
information 
and materials 
determined 
reliable 
and 
relevant 
by 
the 
State 
Purchasing 
Agent. 
as 
determined on a case-by-case basis. 
The State Purchasing Agent 
has specific authority and discretion to employ an independent 
monitor to investigate a complaint. 
2. 
Determination 
by 
State 
Purchasing 
Agent. 
The 
~ermination of whether a party subject to a complaint is in 
compliance with the code of conduct is solely that of the State 
Purchasing Agent. 
3. 
Notice 
of 
detepgination. 
After 
rendering 
a 
determination under this section. 
the State Purchasing Agent 
promptly shall inform the complainant and contractor in writing. 
Sec. A-7. 5 MRSA §1825-S is enacted to read: 
§1825-S. 
Consequences of noncopp1iance with code of conduct 
1. 
Action by State Purchasing Agent. 
Upon determination of 
a 
violation 
of 
the 
code 
of 
conduct 
by 
a 
contractor 
or 
contractor's supplier at the point of assembly of goods covered 
by this 
subchapter, 
the State, 
through the State Purchasing 
Agent. shall inform the contractor and engage in discussions with 
the 
contractor 
about 
the 
violation. 
The 
purpose 
of 
the 
discussions is to work in partnership with the contractor to 
influence the contractor to change its practices or to use its 
bargaining position with the offending supplier to change the 
supplier's practices. rather than to cease doing business with 
the contractor or supplier. 
The State Purchasing Agent shall 
prescribe appropriate measures to ensure compliance with the code 
of conduct. These measures may include, but are not limited to: 
A. 
Requesting that each party found not to be in compliance 
with the 
code 
of 
conduct provide 
access 
to 
independent 
monitors, if available; 
B. 
Requesting that each party found not to be in compliance 
with the code of conduct offer their workers and managers 
the training and guidelines necessary to bring the workplace 
into compliance with the code of conduct; and 
C. 
Requesting that each party found not to be in compliance 
with the code of conduct demonstrate to the State Purchasing 
Agent that prescribed changes or 
improvements 
have 
been 
completed and implemented. 
2. 
Termination of contract. 
If, in the opinion of the 
State Purchasing Agent, a contractor that has been determined as 
not in compliance with the code of conduct does not make good 
faith efforts to change its practices or use its bargaining 
position with an offending supplier to change the supplier's 
practices, 
the 
State 
Purchasing 
Agent 
may 
take 
appropriate 
remedial 
action 
including, 
but 
not 
limited to, 
barring 
the 
subject contractor from bidding on future 
s~ contracts or 
terminating the State's contract with the contractor. 
Reference 
to the authority given in this subsection must be specifically 
referenced in the State's contracts with those contractors that 
are subject to the code of conduct. 
PARTB 
Sec. 
B-1. 
Rulemaking 
pursuant 
to 
statutory 
amendment. 
Notwithstanding the provisions of the Maine Revised Statutes, 
Title 
5, 
section 
1825-0, 
amendments 
to 
rules 
that 
are 
necessitated to ensure consistency with the amendments to state 
purchasing code of conduct law in Part A are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
PARTC 
Sec. C-l. Code of conduct working group. 
The Commissioner of 
Administrative 
and 
Financial 
Services, 
or 
the 
commissioner's 
designee, shall convene a working group to explore whether the 
State Purchasing Agent should investigate alleged violations of 
the state purchasing code of conduct established in the Maine 
Revised Statutes, Title 5, 
chapter 155, subchapter 1-8 by the 
creation and use of an independent fact-finding consortium. 
If 
the working group determines that the use of such a consortium is 
appropriate, the working group also shall examine the means by 
which such a consortium would be created and function. 
1. Membership. 
The working group must consist of 4 members 
who are Maine-based advocates for labor rights and just working 
conditions in the apparel, footwear and textile industry and 4 
members who represent Maine-based businesses having business of 
the type that could be subject to the state purchasing code of 
conduct. 
Members shall serve without compensation. 
The State 
Purchasing Agent, or the agent's designee, shall serve as an ex 
officio, nonvoting member of the working group. 
2. 
Convening 
of 
working 
group. 
The 
Commissioner 
of 
Administrative and Financial Services shall convene the first 
meeting of the working group. 
At that meeting, the members shall 
elect 
a 
chair, 
who 
shall 
convene, 
set 
the 
agenda 
for 
and 
facilitate working group meetings. 
3. 
Duties. 
The working group shall make recommendations to 
advise the Department of Administrative and Financial Services on 
the following issues: 
A. 
The 
appropriateness of 
the 
creation 
and 
use 
independent consortium to monitor and investigate 
violations of the state purchasing code of conduct; 
of 
an 
alleged 
B. 
The factors that should be considered in defining and 
ensuring the independence of the consortium; 
C. 
The manner in which other local and state governments 
would become members of the consortium; 
D. 
The fiscal, personnel and equipment resources that would 
need to be dedicated by the State to create, implement and 
administrate the use of a consortium; and 
E. 
The process by which a consortium, if used by the State, 
would investigate and report on complaints brought under the 
state purchasing code of conduct law. 
4. 
Monthly reports; notice of meetings. 
The working group 
shall provide bimonthly progress reports to the joint standing 
committee of the Legislature having jurisdiction over state and 
local government matters and shall notify committee members of 
each 
meeting 
of 
the 
working 
group. 
A 
final 
report 
with 
recommendations, 
including, 
if necessary, 
recommended proposed 
legislation, that are supported by at least 5 of the 8 voting 
members of the working group regarding the creation and use of a 
consortium must 
be 
submitted 
to 
the 
committee 
on 
or 
before 
January 15, 2007. 
5. 
Termination 
of 
working 
group. 
terminates January 15, 2007. 
SUMMARY 
The 
working 
group 
This bill makes several changes to the law regarding the 
state purchasing code of conduct. 
Specifically, the bill: 
1. 
Details the process that bidders must follow in filing 
an affidavit under the law; 
2. 
Describes when investigations by the State Purchasing 
Agent will be initiated; 
3. 
Sets out the factors that may be taken into account by 
the State Purchasing Agent in making a determination of whether 
the code of conduct has been violated; 
4. 
Permits 
the State Purchasing Agent to take 
remedial 
action, 
including, 
but not limited to, 
terminating contracts, 
against contractors that do not make good faith efforts to comply 
with the code of conduct; and 
5. 
Eliminates 
the State's prerogative 
to 
contract with 
noncompliant contractors when no other procurement source option 
exists. 
Part B of the bill 
ensure consistency with 
routine technical rules. 
provides 
changes 
that changes to 
to the 
law in 
rules made to 
this bill are 
Part C establishes a working group whose task is to report 
on whether the State should form an independent consortium to 
moni tor and investigate complaints of violations of the code of 
conduct and, if so, the manner in which such a consortium would 
be created and function. 
..