An Act To Encourage the Purchase of Products Made in Maine and in the United States and To Give Preference to Maine Businesses When Awarding Contracts
Maine Legislature, Session 127, LD 1525
Committee Amendment CA_A_S459 (Senate)
Amends: 5 MRSA §1815, 5 MRSA §1815-A, 5 MRSA §12004-G

COMMITTEE AMENDMENT "A" to S.P. 587, L.D. 1525, Bill, "An Act To 
Encourage the Purchase of Products Made in Maine and in the United States and To Give 
Preference to Maine Businesses When Awarding Contracts" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Encourage the Purchase of Products Made in Maine and in the United 
States and To Give Preference to Maine Businesses When Awarding Contracts and 
To Establish the Procurement Review Board' 
Amend the bill in section 1 in § 1777 in subsection 4 in the 2nd line (page 1, line 33 in 
L.D.) by inserting after the following: "institutions" the following: 'and includes the 
University of Maine System, the Maine Community College System and the Maine 
Maritime Academy' 
Amend the bill in section 1 in § 1778 in subsection 5 in the 2nd line (page 3, line 15 in 
L.D.) by striking the following: "the State's" and inserting the following: 'applicable' 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. 5 MRSA §1815 is amended to read: 
§1815. Requisitions required 
Except as otherwise provided in chapters 141 to 155 and the rules and regulations 
adopted hereunder, services, supplies, materials and equipment shall must be purchased 
by or furnished to the State Government or any department or agency thereof only upon 
requisition to the State Purchasing Agent. A proposal, bid, contract renewal or 
amendment to, extension of or change to an existing contract valued at $1,000,000 or 
more must go through the Procurement Review Board process pursuant to section 1815-A 
prior to issuance of a public request for proposals or bids by any department or agency. 
A proposal, bid, contract renewal or amendment to, extension of or change to an existing 
contract valued at less than $1,000,000 must go through the Procurement Review Board 
prQcess pursuant to section 1815-A if a maiority of the voting members of the board vote 
to review the request. The State Purchasing Agent, or ms the agent's authorized 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT")\ "to S.P. 587, L.D. 1525 
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representative, shall examine each requisition submitted to him the agent by any 
department or agency of the State Government and may revise it as to quantity, quality or 
estimated cost after consultation with the department or agency concerned. 
Sec. 3. 5 MRSA §1815-A is enacted to read: 
§1815-A. Procurement Review Board 
1. Board established. The Procurement Review Board, referred to in this section as 
"the board," is established pursuant to section 12004-G, subsection 29-E to cany out the 
duties of the board as provided in this section. 
2. Membership; vacancy; compensation. The board consists of 7 members as 
follows: 
A. 
Five members who have business or professional experience in the area of 
procurement, appointed by the Governor and subject to review by the joint standing 
committee of the Legislature having jurisdiction over state and local government 
matters and to confirmation by the Senate; 
B. 
The Attorney General or the Attorney General's designee, who serves as a 
nonvoting member; and 
C. The Treasurer of State or the treasurer's designee, who serves as a nonvoting 
member. 
A member of the Legislature may not be appointed to or serve on the board. 
In the case of a vacancy, the Governor may nominate an individual to fill the vacant 
position. If the Governor does not nominate an individual to fill a vacant position on the 
board within 30 days of the vacancy, the President of the Senate and the Speaker of the 
House of Representatives shall jointly appoint an individual to fill the vacancy. A 
member appointed by the President of the Senate and the Speaker of the House of 
Representatives is not subject to confirmation by the Legislature. 
Members described in paragraph A are entitled to reimbursement for direct expenses of 
attendance at meetings of the board. 
3. Terms. Members of the board appointed by the Governor serve 4-year terms. 
Board members may serve 2 consecutive terms. 
4. Chair. The board shall elect annually a chair from among its members to serve 
for one year. 
5. Powers and duties. The board has the following powers and duties: 
A. To review, comment on and approve all requests for proposals, bids, contract 
renewals and amendments to, extensions of and other changes to existing contracts 
for the procurement of supplies, professional or artistic services, construction and real 
property and capital improvement leases procured by the State valued at $1,000,000 
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or more; and 
B. To review, upon a majority vote of its voting members, requests for proposals, 
bids, contract renewals and amendments to, extensions of and other changes to an 
existing contract valued at less than $1,000,000. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 587, L.D. 1525 
6. Staff support. Upon a majority vote of its voting members, and to the extent 
funds are available, the board may employ an executive director and staff support. 
7. Meetings. The board shall meet at least twice each month. The board shall meet 
in person. Each meeting of the board must be open to the public. The board shall keep 
records and minutes of its activities under this section and meetings. These records and 
minutes must be made easily accessible to the public and be provided expeditiously upon 
request. 
8. Interests of members. That a member of the board is employed by or holds an 
interest in an entity doing business with or attempting to do business with the State does 
not preclude the entity from doing business with or attempting to do business with the 
State. 
9. 
Board approval required. State departments and agencies shall submit all 
requests for proposals, bids, contract renewals and amendments to, extensions of and 
other changes to existing contracts to the board. A proposal, bid, contract renewal or 
amendment to, extension of or other change to an existing contract valued at $1,000,000 
or more must be approved by the board before proceeding. If a proposal, bid, contract 
renewal or amendment to, extension of or other change to an existing contract is valued at 
less than $1,000,000 and if the board takes no action to initiate a review within 30 days of 
receiving the proposal, bid, contract renewal or amendment to, extension of or other 
change to an existing contract, the affected department or agency may proceed with the 
proposal, bid, contract renewal or amendment to, extension of or other change to an 
existing contract without the review, comment or approval of the board. The State 
Purchasing Agent, any other position that is authorized to make procurements and each 
state department or agency shall cooperate with the board, provide information to the 
board and respond to the board in the board's reviews, studies and hearings. 
10. Legal advice from Attorney General required for expenditures of $3,000,000 
or more. Prior to seeking approval from the board, state departments and agencies shall 
request and obtain legal advice from the Attorney General if an expenditure of 
$3,000,000 or more is reasonably expected as a result of a request for proposals or bids or 
a contract renewal or amendment to, extension of or other change to an existing contract 
under this section. 
11. Legal advice from Attorney General required in specific instances. The 
board shall request and obtain legal advice from the Attorney General on a proposed 
contract if the board determines: 
A. 
The contract may expose the State to substantial risk in the event of 
nonperformance; or 
B. The contract could reasonably be expected to incur costs to the State in excess of 
$3,000,000 over the full term of the proposed contract, exclusive of extensions or 
amendments. 
12. Conditions for board approval of a contract. The board shall approve the 
award of a contract pursuant to subsection 9 when the board determines: 
A. The service to be performed under the contract cannot be economically provided 
by State Government; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 587, L.D. 1525 
I 
B. 
The award of the contract is the most economical, effective and appropriate 
means of fulfilling a demonstrated need: 
C. The contract will not impair the ability of the department or agency to meet its 
statutory duties and responsibilities: and 
D. 
The contract does not diminish statewide or other budgetary cost-saving 
initiatives. 
13. Sole source contract requirements. A sole source contract subject to the 
board's approval pursuant to subsection 9 may be approved when accompanied by written 
justification from the department or agency that demonstrates that: 
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A. The contract is critical or essential to department or agency responsibilities or 
operations: 
B. Sufficient staffing or expertise is not available from within the department or 
agency or through other governmental entities; 
C. The supplies or services required are unique to the specific contractor; or 
D. The services are of an urgent nature and only one known source can meet the 
department's or agency's needs within the required time frame and the department or 
agency has exercised due diligence and determined that the negotiated costs, fees or 
rates are fair and responsible. 
14. Notification of legislative committees of jurisdiction. Within 3 months of 
determining that a contract has resulted in a cost overrun, each applicable state 
department and agency shall notify the board and applicable legislative committees of 
jurisdiction of the contract that resulted in the cost overrun and report the dollar amount 
that has exceeded the contract. 
Sec. 4. 5 MRSA §12004-G, sub-§29-E is enacted to read: 
29-E. 
Procurement 
Review 
Procurement Review Expenses Only 
Board 
MRSA §1815-A 
Sec. 5. Procurement Review Board; staggered terms. Notwithstanding the 
Maine Revised Statutes, Title 5, section 1815-A, subsection 3, of the initial members 
appointed to the Procurement Review Board, the Governor shall appoint 2 members for 
terms of 3 years, 2 members for terms of 2 years and one member for a term of one year. 
Sec. 6. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Purchases - Division of 0007 
Initiative: Provides funds for one Management Analyst II position and related costs. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 587, L.D. 1525 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOT AL - ALL FUNDS 
TRANSPORTATION, DEPARTMENT OF 
Administration 0339 
2015-16 
0.000 
$0 
$0 
$0 
2015-16 
$0 
$0 
2016-17 
1.000 
$76,465 
$10,000 
$86,465 
2016-17 
$86,465 
$86,465 
Initiative: Provides an allocation for 2 Procurement and Contract Specialist positions and 
related costs. 
HIGHWAY FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
HIGHWAY FUND TOT AL 
TRANSPORTATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
HIGHWAY FUND 
DEPARTMENT TOTAL -ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
1 
Administration - Treasury 0022 
2015-16 
2016-17 
0.000 
2.000 
$0 
$139,400 
$0 
$10,000 
$0 
$149,400 
2015-16 
2016-17 
$0 
$149,400 
$0 
$149,400 
Initiative: Provides funding for one Public Service Coordinator I position and related 
costs. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A,, to S.P. 587, L.D. 1525 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
TREASURER OF STATE, OFFICE OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL - ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
HIGHWAY FUND 
SECTION TOT AL - ALL FUNDS 
2015-16 
0.000 
$0 
$0 
$0 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
$0 
2016-17 
1.000 
$85,300 
$5,000 
$90,300 
2016-17 
$90,300 
$90,300 
2016-17 
$176,765 
$149,400 
$326,165 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment, which is the majority report of the committee, makes the following 
changes to the bill. 
1. It changes the title of the bill. 
2. It amends the bill to clarify that the law's application must be consistent with all 
applicable trade obligations and not only with the State's international trade obligations. 
3. 
It amends the bill to include the University of Maine System, the Maine 
Community College System and the Maine Maritime Academy in the definition of 
"public agency." 
4. 
It establishes the 7-member Procurement Review Board, which must review 
proposals, bids, contract renewals and amendments to, extensions of and changes to 
existing contracts valued over $1,000,000 and, upon a majority vote of the board, may 
review proposals, bids, contract renewals and amendments to, extensions of and changes 
to existing contracts valued under $1,000,000. The Attorney General and Treasurer of 
State serve as nonvoting members of the board. 
5. It requires the Procurement Review Board to meet at least twice per month in 
person and make records and minutes of meetings accessible to the public. 
COMMITTEE AMENDMENT 
'.,./ 
·"-. 
·-' 
COMMITTEE AMENDMENT" A" to S.P. 587, L.D. 1525 
6. It sets out requirements for sole source contracts under review by the board. 
7. It requires each applicable state department and agency to notify the board and 
applicable legislative committee of jurisdiction within 3 months of determining that a 
contract has resulted in a cost overrun. 
8. It adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
., 
Approved: 03/30/16 feac.. 
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LD 1525 
LR 2207(02) 
An Act To Encourage the Purchase of Products Made in Maine and in the United States and To Give 
Preference to Maine Businesses When Awarding Contracts 
Fiscal Note for Bill as Amended by Committee Amendment ''A''fs-qs-9\ 
Committee: State and Local Government 
\.." 
J 
Net Cost (Savings) 
General Fund 
Highway Fund 
Appropriations/ Allocations 
General Fund 
Highway Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
$0 
$0 
$0 
$0 
FY 2016-17 
$176,765 
$149,400 
$176,765 
$149,400 
Projections 
FY 2017-18 
$178,873 
$153,582 
$178,873 
$153,582 
Projections 
FY 2018-19 
$185,545 
$157,889 
$185,54 
$157,889 
The bill includes a General Fund appropriation of $90,300 in fiscal year 2016-17 to the Office of the Treasurer of 
State for one Public Service Coordinator I position and related costs to prepare for and attend meetings of the 
Procurement Review Board. It also includes a General Fund appropriation of $86,465 in fiscal year 2016-17 for the 
Department of Administrative and Financial Services for one Management Analyst II position to meet the contractual 
requirements concerning the origin of manufactured goods and construction materials. 
The bill also includes a Highway Fund allocation of $149 ,400 in fiscal year 2016-17 to the Department of 
Transportation for 2 Procurement And Contract Specialist positions and related costs to coordinate with the board. 
Requiring all contracts for the construction, reconstruction, alteration, repair, improvement or maintenance of a public 
building or public work by a public agency, including the University of Maine System, Maine Maritime Academy and 
the Maine Community College System, to include a provision that the manufactured goods, including iron and steel, 
used or supplied in the performance of the contract or any subcontract must be manufactured in Maine or the United 
States could increase costs to the General Fund, Highway Fund and Federal Expenditures Fund as well as to the 
higher educational institutions if these goods are more expensive than those manufactured elsewhere and a waiver is 
not granted. 
LR2207(02) - Fiscal Note - Page I of I