Resolve, To Temporarily Suspend the Rate-setting Procedures for the Forest Products Industry
Maine Legislature, Session 123, LD 2273
Committee: Agriculture, Conservation and Forestry
Sponsors: MARTIN, JACKSON

Legislative Document 
No. 2273 
S.P.896 
March 25, 2008 
Resolve, To Temporarily Suspend the Rate-setting Procedures for 
the Forest Products Industry 
(EMERGENCY) 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
Presented by Senator MARTIN of Aroostook. (GOVERNOR'S BILL) 
Cosponsored by Representative JACKSON of Allagash. 
PrmteJ (111 recycbJ paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, Maine is dependent on its natural resources-based economy; and 
Whereas, the Legislature recognizes that fuel costs and other economic forces have 
a devastating impact on the Maine economy, especially with regards to loggers and 
truckers carrying forest products; and 
Whereas, it is in the public interest to ensure a reasonable rate of compensation for 
wood harvesting and hauling services in all regions of the State and to assess the impact 
of the Maine Revised Statutes, Title 26, chapter 18 on those services; and 
Whereas, ensuring a reasonable rate of compensation for wood harvesting and 
hauling services is achievable via a statewide market power study of the forest products 
industry; and 
Whereas, fairness dictates that the provisions of the Maine Revised Statutes, Title 
26, chapter 18, except certain portions of Title 26, section 1354, be suspended pending 
completion of such a study and enactment of legislation pursuant to that study; and 
Whereas, a majority of the providers of wood harvesting and hauling services 
subject to the Maine Revised Statutes, Title 26, chapter 18 have voted to support the 
suspension of those statutory provisions until June 1, 2009; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, be it 
Sec. 1. Rates of compensation for forest products harvesting and hauling 
services termination. Resolved: That the operation of the Maine Revised Statutes, 
Title 26, chapter 18 is suspended until June 1, 2009, except that forest products harvesters 
and haulers may continue to join together and form an association to meet, confer and 
share information as provided in Title 26, section 1354. The Legislature may consider 
terminating the suspension described in this section on or after January 7, 2009 by 
resolve. The Governor may terminate the suspension described in this section at any time 
that the Legislature is not in session. The Governor shall make the termination in writing. 
The termination does not become effective until 60 days following the written notice; and 
be it further 
Sec. 2. 
Department of the Attorney General to study the statewide 
market for forest products harvesting and hauling services. Resolved: That 
the Department of the Attorney General, referred to this section as "the department," shall 
conduct a study of the statewide market for forest products harvesting and hauling 
services. The department shall examine competition within the industry and determine 
what, if any, changes are necessary to ensure fair competition throughout the State. The 
department shall consider the relevance of and study at a minimum the following on a 
statewide basis: 
1. Issues of market concentration and horizontal market power; 
2. Issues of vertical market power arising from integrated ownership or control of 
hauling, harvesting and other related assets; 
3. 
The existence of barriers to entry into the harvesting and hauling industry, 
including required capitalization; 
4. The extent to which imbalances of supply and demand create opportunities for the 
unreasonable exercise of market power; 
5. The advantages and disadvantages of altering the current market system in the 
harvesting and hauling of forest products; 
6. The approaches taken in other states to address similar issues; and 
7. The statewide market for such services. 
In conducting the study, the department shall consult with the Executive Department, 
State Planning Office; the Department of Labor; forest landowners; industry 
representatives; and other parties as determined appropriate by the department. 
The department shall use the services of the State Economist and may retain an 
independent expert as it determines necessary in order to conduct the study. 
The department shall make available a draft interim report for public comment not 
later than December 1,2008. The final report of its findings and recommendations must 
be submitted no later than January 15, 2009 to the joint standing committee of the 
Legislature having jurisdiction over forest products harvesting and hauling services. The 
interim and final reports must include any legislation necessary to implement the 
recommendations of the department. If the department requires an extension of time to 
make its reports, it may apply to the Legislative Council, which may grant the extension. 
Any legislation or recommendation of the department pursuant to the study must apply to 
all landowners in the State; and be it further 
Sec. 3. 
Legislation. 
Resolved: 
That the joint standing committee of the 
Legislature having jurisdiction over forest products harvesting and hauling services may 
submit a bill related to the study to the First Regular Session ofthe 124th Legislature. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This resolve provides for the immediate suspension until June 1, 2009 of the 
requirements of the Maine Revised Statutes, Title 26, chapter 18, which regulates rates of 
compensation for forest products harvesting and hauling services, except for the section 
of that chapter that allows harvesters or haulers to fonn an aSSOCIatIOn for rate 
detenrunation proceedings. The suspension may be lifted by the Governor prior to June 
1, 2009 if the Legislature is not in session. 
This resolve also requires the Department of the Attorney General to conduct a study 
of the statewide market for forest products harvesting and hauling services and to submit 
legislation implementing the department's recommendations. The final report must be 
submitted by January 15,2009.