An Act To Protect Maine Workers
Maine Legislature, Session 124, LD 1545
Committee Amendment CA_A-SA_A_S536 (Senate)
Amends: 26 MRSA §872, 26 MRSA §873, 26 MRSA §874

SENATE AMENDMENT 4t " 
to COMMITTEE AMENDMENT "A" to S.P. 593, 
L.D. 1545, Bill, "An Act To Protect Maine Workers" 
Amend the amendment by striking out all of section 4 and inseliing the following: 
'Sec. 4. 26 MRSA §872, sub-§2, as amended by PL 2009, c. 381, §1, is further 
amended to read: 
2. Proof of ownership required. An employer in this State who etltfHBY5 applies 
for a bond worker in a logging occupation 'shall provide proof of the employer's 
ownership of any logging equipment used by that worker in the course of employment, 
including proof of ownership of at least one piece of logging equipment for evelY 2 bond 
workers employed by the employer in a logging occupation. The employer shall provide 
proof of ownership as required by this subsection on a form provided by the 
Commissioner of Labor. The proof required by this subsection must include, but not be 
limited to, a receipt for payment for the equipment purchased in a bona fide transaction 
and documentation of payment of any tax assessed on the equipment pursuant to Title 36, 
chapter 105 for the year in which the bond worker is employed by the employer. Proof of 
ownership must be carried in the equipment and, upon request by the department, the 
operator of equipment subject to this section shall provide proof of ownership. 
Notwithstanding section 3, information regarding proof of ownership is not confidential 
and may be disclosed to the public. Lf the equipment is leased by the employer, the 
employer shall provide the name, address and telephone number of the leasing company 
and its affiliates and subsidiaries; the names, addresses and telephone numbers of the 
leasing company's owner or owners, its agent and members of its board of directors; and a 
copy of the lease document. A lease is sufficient to meet the ownership requirement of 
this section only if it is a bona fide lease and: 
A. The lease consists of an arm's length transaction between unrelated entities or is a 
transfer of equipment between affiliated companies; 
B. The lease document contains a specific duration and lease amount; 
C. The lessor is not an entity owned or controlled by a bond worker or a bond 
worker's spouse, parent, child, sibling, aunt, uncle or cousin or person related to a 
bond worker in the same manner by marriage, or by any combination of a bond 
worker and the bond worker's family members described in this paragraph; and 
Page I - 124LR2087(06)-1 
SENA TE AMENDMENT 
SENATE AMENDMENT" Jr." to COMMITTEE AMENDMENT "A" to S. P. 593, L. D. 1545 
D. The lessor is a bona fide leasing business as evidenced by a lease of logging 
~uipment to at least 3 different, unrelated entities within each of the past 3 years.' 
Amend the amendment in section 5 in subsection 2-A by adding at the end the 
following: 'An employer shall notify the Maine Department of Labor within 3 days of the 
date on which a bond worker begins work in the State and shall specify the name of the 
bond worker and where the bond worker will be conducting work.' 
Amend the amendment by inserting after section 9 the following: 
'Sec. 10. 26 MRSA §873 is enacted to read: 
§873. Recruitment for logging occupations 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
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following terms have the folIowing meanings. 
A. "Bond worker" has the same meaning as in section 872. 
B. 
"Recruitment clearinghouse" or "clearinghouse" means a system operated by 
members of the forest products industry and described in subsection 3. 
2. Employer requirements; clearinghouse and reporting. An employer filing for 
celtification with the United States Department of Labor to hire a bond worker in a 
logging occupation shall: 
A. File a copy of all federal forms and reports relating to H2 visas with the Maine 
Department of Labor at the same time as the employer files the form or report with 
the United States Department of Labor; and 
B. Be a member and active participant of a recruitment clearinghouse that complies 
with subsection 3. 
The Maine Department of Labor may consider failure to 
participate in the clearinghouse as failure to participate in gOod faith recruitment of 
workers who are citizens of the United States and a failure to meet the requirement 
that the employer accept qualified workers referred through the department under 
subsection 5. 
3. 
Clearinghouse requirements. The Maine Department of Labor shalI assist 
members of the forest products industlY in establishing the recruitment clearinghouse, 
which must be financed and operated by members of the forest products industry. The 
clearinghouse must provide a centralized, streamlined process for applicants in the forest 
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products industry. 
A. The clearinghouse must provide a staffed, tolI-free telephone number to receive 
telephone inquiries for logging employment. 
B. For each applicant who contacts the clearinghouse directly or who is referred to 
the c1earinghOlise by the Maine Department of Labor pursuant to subsection 4, the 
clearinghouse shall gather any information necessary to assess the job appl icant's 
qualifications for the job classification applied for, including but not limited to 
conducting a reference check. Following the assessment, the clearinghouse shall: 
(I) Notify the Maine Department of Labor and the applicant that the applicant 
lacks sufficient qualifications or satisfactory references for the position sought 
and state the reasons for that determination; or 
SENATE AMENDMENT 
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SENATE AMENDMENT" A" to COMMIHEE AMENDMENT "A" to S.P. 593, L.D. 1545 
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Refer the applicant to a logging employer seeking workers in that job 
classification. 
To the extent practicable, the clearinghouse shall refer the 
applicant to the applicant's preferred geographic area of employment. Referral 
may be made to any employer with relevant job openings, regardless .of whether 
the employer is seeking bond workers, if the applicant prefers such a referral. 
4. Department role. The Maine Department of Labor shall: 
A. 
Refer to the recruitment clearinghouse all applicants who meet mll1lmUm 
qualifications for employment with a logging employer. The referral must include 
information required of applicants who use the depaliment's career center services; 
B. Keep a record of the name, date of referral, preferred working location and job 
classification of each applicant referred to the recruitment clearinghouse; 
C. Engage actively with the recruitment clearinghouse and with employers to assist 
them in understanding how to comply with their obligations under state and federal 
law regarding recruitment and hiring of logging workers; and 
D. Regularly review clearinghouse referrals and assessments and employer response 
to referrals in order to make determinations of compliance by employers with the 
requirements of 20 Code of Federal Regulations, Part 655, Subpart B. Failure of the 
clearinghouse to appropriately refer and assess applicants may be considered failure 
of each of the member employers to adequately recruit workers who are citizens of 
the United States. 
5. Job offer; skills test. Upon referral of an applicant under subsection 3, a logging 
employer shall offer employment to that applicant. 
. 
. 
A. An employment offer may be conditioned on a skills test, but only if the employer 
requires the skills test of all new applicants in that job classification. 
B. If a skills test under paragraph A is required, it must be conducted at the area of 
intended employment, at a central location designated by the recruitment 
clearinghouse in conjunction with the logging employer or at another location within 
reasonable distance from the applicant's residence. 
C. A contractor that requires a skills test under paragraph A in the preemployment 
hiring process shall submit a copy of the testing policy and procedure to the Maine 
~altment of Labor at the time the contractor files the position on the state Job 
Bank. 
D. An applicant who is rejected from employment due to failing a skills test under 
paragraph A must be given a written statement of the reason for failure of the skills 
test. The employer shall provide a copy of the written statement to the recru itment 
clearinghouse and the Maine Department of Labor .. 
6. Contracts with landownel·s. A contract for harvesting wood between a logging 
employer and a landowner must contain a provision that allows the landowner to 
terminate the contract jf the logging employer violates this section or the applicable 
federal regulations regarding employment of bond workers. 
SENA TE AMENDMENT 
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SENATE AMENDMENT "k" to COMMITTEE AMENDMENT "A" to S.P. 593, L.D. 1545 
7. Penalties. The Maine Department of Labor shall make good faith efforts to 
resolve alleged violations of this section or of the recruitment process. If such efforts are 
not successful, the following penalties apply. 
A. Violation of this section is considered a violation of section 872 and is subject to 
the penalties as set forth in section 872, subsection 5. 
B. An employer is subject to discontinuation of services pursuant to 20 Code of 
Federal Regulations, Section 658.500 et seq. ifthe employer fails to comply with this 
section or the clearinghouse fails to appropriately refer or assess armlicants in the job 
classification in which the employer is seeking bond workers. 
8. 
Landowner contracts with employers. 
This subsection governs contracts 
between logging employers and landowners. 
A. The Maine Department of Labor shall maintain an approved list of employers 
consisting of those employers filing for certification with the United States 
Department of Labor to hire a bond worker in a logging occupation that are members 
of and active participants in a recruitment clearinghouse that compl ies with 
subsections 2 and 3. The list must also contain any employer under investigation by 
the Maine Departmelit of Labor for a violation of section 872, section 873 or federal 
regulations applicable to foreign labor. The depaltment shall publish the list on the 
department's publicly accessible website and forward a copy of the list and 
subsequent updates to the recruitment clearinghouse. 
Each landowner or other 
person that wishes to be notified of a change in status of a contractor mllst file with 
the department a request to be notified and contact information for the notification. 
B. The Maine Depaltment of Labor, after notice and hearing, shall remove from the 
list of approved employers under paragraph A any employer filing for celtification 
with the United States Department of Labor to hire a bond worker in a logging 
occupation that is found to have committed a material violation of section 872, 
section 873 or the applicable federal regulations. 
C. A person may appeal the placement 01' removal of an employer on the approved 
list under paragraph A to the State Board of Arbitration and Conciliation. If the 
!!ppeal relates to removal of the employer from the list, it must be made within 15 
days of notice of removal to the emr.loyer. The board shall conduct an arbitration 
session pursuant to chapter 9, subchapter 2-A. Board proceedings under this section 
must be conducted in Augusta, unless the board determines that this location is 
impracticable in the specific circumstances. Notwithstanding section 931, the costs 
of arbitration under this section must be paid by a non lapsing fund to be established 
by the department. 
D. The Maine Depaltment of Labor shall notify persons who have filed a request for 
notification of the removal of any employer from the list. 
E. A landowner who enters into or maintains a contract with an employer not on the 
approved list under paragraph A is subject to a fine of not more than $50,000. 
Sec. 11. 26 MRSA §874 is enacted to read: 
SENATE AMENDMENT 
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SENATE AMENDMENT" A·[O COMMITTEE AMENDMENT "A" to S.P. 593, L.D. 1545 
§874. Fund established 
The Foreign Labor Celiification Process Furid, referred to in this subchapter as "the 
fund," is established. 
The fund consists of any flll1ds received as grants or other 
contributions from private and public sources. The fund, to be accounted within the 
Department of Labor, must be held separate and apart from all other money, funds and 
accounts. Eligible investment eamings credited to the assets of the fund become pali of 
the assets of the fund. Any balance remaining in the fund at the end of any fiscal year 
must be carried forward to the next fiscal year. The fund may be used to pay expenses 
incurred by the Department of Labor in carrying out its functions under this subchapter.' 
Amend the amendment by inseliing after section 11 the following: 
'Sec. 12. Appropriations and allocations. The following appropriations and 
allocations are made. 
LABOR, DEPARTMENT OF 
Foreign Labor Certification Process Fund N111 
Initiative: Provides a base allocation in the event that grants or other contributions from 
private and public sources are received. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS 
2009-10 
$0 
$0 
2010-11 
$500 
$500 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment adds language to the laws governing proof of equipment ownership 
for employers using foreign laborers requiring that any lease used to demonstrate 
ownership must be a bona fide lease and setting forth some of the standards for 
determining whether a lease is bona fide. 
The amendment requires employers of bond workers to notify the Department of 
Labor of the name and location of bond workers performing logging work in the State. 
The amendment requires employers seeking bond workers to fonn and paliicipate in 
a recruitment clearinghouse that assists in evaluating and referring potential logging 
occupation workers. 
The Depaliment of Labor will work with the clearinghouse to 
ensure understanding of, and compliance with, recruitment and hiring requirements under 
federal regulations and state law. 
The amendment requires the Department of Labor to maintain a list of contractors 
who are seeking to hire bond workers, and to require landowners to hire contractors from 
that list. Contractors who violate federal regulations or state law relating to bond workers 
. SENA TE AMENDMENT 
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SENATE AMENDMENT" k· to COMMITTEE AMENDMENT "A" to S.P. 593, L.D. 1545 
must be removed from the list. A landowner who enters into or maintains a contract with 
an entity that is not on the list is subject to a fine of up to $50,000. 
The amendment establishes the Foreign Labor Certification Process Fund and adds an 
appropriations and allocations section. 
FISCAL NOTE REQUIRED 
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attached) 
SPONSORED BY: ~ 
(Senator JACK~ 
COUNTY: Aroostook 
SENA TE AMENDMENT 
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Revised: 04/07/10 frac 
LD 1545 
LR 2087(06) 
An Act To Protect Maine Workers 
Fiscal Note fOl' Senate Amendment "k to Committee Amendment "A" 
Sponsor: Sen. Jackson of Aroostook 
Fiscal Note Required: Yes 
Fiscal Note 
Undetermined current biennium revenue increase - General Fund 
Potential current biennium revenue increase - Other Special Revenue Funds 
2009-10 
2010-11 
Projections 
2011-12 
Pl'ojections 
2012-13 
Appropriations/Allocations 
Other Special Revenue Funds 
$0 
$500 
$500 
$500 
Fiscal Detail and Notes 
This amendment establishes a Foreign Labor Celtification Process Fund as a nonlapsing dedicated fund within the 
Department of Labor and provides a base allocation of $500 in fiscal year 2010-11 in the event that grants or other. 
contributions from private and public sources are received to pay the expenses incurred by the Depatiment while 
fulfilling the requirements of this legislation. 
Penalties assessed by the Depatiment of Labor as a result of this legislation may result in increased revenues to the 
General Fund. The amount can not be determined at this time. 
LR2087(06) - Fiscal Note - Page I of I