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: State and Local Government
Sponsors: SAVIELLO, BLACK, BAKER, CYRWAY, LANGLEY, PATRICK, WHITTEMORE, WOODSOME

Legislative Document 
No. 1525 
S.P. 587 
In Senate, January 6, 2016 
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 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on State and Local Government suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator SAVIELLO of Franklin. 
Cosponsored by Representative BLACK of Wilton and 
Senators: BAKER of Sagadahoc, CYRWAY of Kennebec, LANGLEY of Hancock, PATRICK 
of Oxford, WHITTEMORE of Somerset, WOODSOME of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA c. 153, sub-c. 3 is enacted to read: 
SUBCHAPTER 3 
MATERIALS, SUPPLIERS AND VENDORS 
§1777.  Definitions 
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings. 
1.  Emergency life safety and property safety goods.  "Emergency life safety and 
property safety goods" means any goods that are part of or for addition to a system 
designed to prevent, respond to, alert regarding, suppress, control or extinguish an 
emergency or the cause of an emergency, or goods used to assist evacuation in the event 
of an emergency, that threatens life or property.  "Emergency life safety and property 
safety goods" includes, but is not limited to, goods relating to systems or items for fire 
alarm, fire sprinkling, fire suppression, fire extinguishing, security, gas detection, 
intrusion detection, access control, video surveillance and recording, mass notification, 
public address, emergency lighting, patient wandering, infant tagging and nurse call. 
2.  Manufactured good.  "Manufactured good" means: 
A.  An article, material or supply, including any preassembled items, brought to a 
construction site for incorporation into a public building or public work; and  
B.  An article, material or supply acquired for public use. 
3.  Manufactured in Maine or in the United States.  "Manufactured in Maine or in 
the United States" means:  
A.  In the case of an iron or steel product, all manufacturing takes place in Maine or 
another state in the United States, except metallurgical processes involving the 
refinement of steel additives; and 
B.  In the case of a manufactured good, other than an iron or steel product: 
(1)  All of the manufacturing processes for the manufactured good take place in 
Maine or another state in the United States; and 
(2)  The origin of a manufactured good's components or subcomponents meets a 
minimum level of domestic content, as defined in rules established by the 
Department of Administrative and Financial Services pursuant to section 1780. 
4.  Public agency.  "Public agency" means the State and its departments, agencies, 
boards, commissions and institutions, but does not mean a county, municipality or school 
administrative unit. 
5.  Public building or public work.  "Public building or public work" means any 
structure, building, highway, waterway, street, bridge, transit system, airport or other 
betterment, work or improvement whether of a permanent or temporary nature and 
whether for governmental or proprietary use.  "Public building or public work" includes, 
but is not limited to, any railway; street railway; subway; elevated and monorail 
passenger rolling stock; passenger and railroad rolling stock; self-propelled car; gallery 
car; locomotive; passenger bus; wires, poles and equipment for electrification of a transit 
system; rails; tracks; roadbed; guideway; elevated structure; building; school; hospital; 
station; terminal; dock; and shelter and repairs to any such public buildings and public 
works. 
6.  United States.  "United States" means the United States of America and any 
territory or insular possession subject to the jurisdiction of the United States. 
§1778.  Use of materials manufactured in Maine or in the United States 
1.  Mandatory contract provision.  Notwithstanding any other provision of law, a 
contract for the construction, reconstruction, alteration, repair, improvement or 
maintenance of a public building or public work made by a public agency must contain a 
provision that the manufactured goods, including iron and steel, used or supplied in the 
performance of the contract or any subcontract to the contract must be manufactured in 
Maine or in the United States. 
2.  Exceptions.  A public agency may apply to the Governor or the Governor's 
designee for a waiver of the requirements of subsection 1 in any case or category of cases 
in which the executive head of a public agency finds: 
A.  That the application of the requirements of subsection 1 would be inconsistent 
with the public interest; 
B.  That the necessary manufactured goods are not produced in Maine or in the 
United States in sufficient and reasonably available quantities and of a satisfactory 
quality; 
C.  That inclusion of manufactured goods manufactured in Maine or in the United 
States will increase the cost of the overall project contract by an unreasonable 
amount, as defined in rules established by the Department of Administrative and 
Financial Services pursuant to section 1780; or 
D.  That the cost of the total contract for the construction, reconstruction, alteration, 
repair, improvement or maintenance of a public building or public work is below a 
minimum project cost, as established by rules of the Department of Administrative 
and Financial Services pursuant to section 1780. 
3.  Public review and comment.  The Department of Administrative and Financial 
Services shall implement procedures to allow a reasonable amount of time for public 
review and comment on a requested waiver under subsection 2 before making a finding 
based on the request and shall publish on the department's publicly accessible website, or 
in a newspaper of general circulation in the area of the proposed work, a detailed 
justification for any waiver granted. 
4.  Intentional violations.  The Department of Administrative and Financial Services 
shall, after a hearing, debar a person, business or other entity from participation in 
contracts and subcontracts with the State for 2 years if the department has reason to 
believe that person, business or other entity has intentionally: 
A.  Affixed a label bearing a "Made in Maine" or "Made in America" inscription, or 
any inscription with the same meaning, to any manufactured good, including iron and 
steel, used in a project to which this section applies when that manufactured good 
was not manufactured in Maine or in the United States; 
B.  Represented that any manufactured good, including iron and steel, used in a 
project to which this section applies was manufactured in Maine or in the United 
States when that manufactured good was not manufactured in Maine or in the United 
States; or 
C.  Violated any provision of this subchapter. 
5.  International trade obligations.  This section must be applied in a manner 
consistent with the State's obligations under any applicable international agreements 
pertaining to government procurement. 
6.  Exception for emergency life safety and property safety goods.  The provisions 
of this subchapter do not apply to emergency life safety and property safety goods. 
§1779.  Preference for businesses located in the State 
Notwithstanding any provision of law to the contrary, the Director of the Bureau of 
General Services shall apply a preference percentage of 5% for a business submitting a 
bid for a contract under this subchapter whose principal place of business is located in the 
State and that pays a majority of its payroll to residents of the State as long as: 
1.  Quality.  The product or service offered by the business is comparable in quality 
to the product or service offered by the best-value bidder; and 
2.  Price.  The bid submitted by the business is no more than 5% over the bid 
submitted by the best-value bidder. 
§1780.  Rules 
The Department of Administrative and Financial Services shall adopt routine 
technical rules as described in chapter 375, subchapter 2-A to implement this subchapter. 
Sec. 2.  Effective date.  This Act takes effect September 1, 2016. 
SUMMARY 
This bill requires that all contracts for the construction, reconstruction, alteration, 
repair, improvement or maintenance of a public building or public work made by a state 
department, agency, board, commission or institution contain a provision that the 
manufactured goods, including iron and steel, used or supplied in the performance of the 
contract or any subcontract under the contract must be manufactured in Maine or in the 
United States.  This requirement does not apply to counties, municipalities or school 
administrative units. 
The bill requires that, in the case of a manufactured good other than an iron or steel 
product, all of the manufacturing processes take place in Maine or in the United States 
and the origin of the manufactured good's components or subcomponents meet a 
minimum level of domestic content as established by rule. 
The bill provides that a public agency may apply to the Governor or the Governor's 
designee for a waiver of the requirement if the executive head of the public agency finds 
that the application of the requirement would be inconsistent with the public interest, that 
the necessary manufactured goods are not produced in Maine or in the United States in 
sufficient and reasonably available quantities and of a satisfactory quality or that 
inclusion of manufactured goods made in Maine or in the United States will increase the 
cost of the overall project contract by an unreasonable amount.  The Department of 
Administrative and Financial Services is directed to develop rules regarding this 
legislation, including rules to guide the waiver process and the process for public review 
and comment regarding requests for a waiver. 
The bill requires that if the Department of Administrative and Financial Services has 
reason to believe that any person, business or other entity has intentionally made 
fraudulent representations about the domestic content of a manufactured good or has 
intentionally violated any provision of this legislation, the department must, after a 
hearing, debar that person, business or other entity from contracts or subcontracts with 
the State for 2 years. 
The bill gives preference in the awarding of contracts to businesses located in the 
State. 
The bill provides that the provisions of this legislation must be applied in a manner 
consistent with the State's obligations under any applicable international agreements 
pertaining to government procurement.