An Act To Encourage Development in the Logging Industry by Requiring State and Local Government Agencies To Give Preference to Lumber and Solid Wood Products Harvested in the State
Maine Legislature, Session 128, LD 1573
Committee: State and Local Government
Sponsors: JACKSON, MARTIN, SAVIELLO, HERBIG

Legislative Document
No. 1573
S.P. 551
In Senate, May 4, 2017
An Act To Encourage Development in the Logging Industry by 
Requiring State and Local Government Agencies To Give 
Preference to Lumber and Solid Wood Products Harvested in the 
State
Reference to the Committee on State and Local Government suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator JACKSON of Aroostook.
Cosponsored by Representative MARTIN of Eagle Lake and
Senator: SAVIELLO of Franklin, Representative: HERBIG of Belfast.
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 
MAINE TIMBER 
§1777.  Legislative findings 
1.  Findings.  The Legislature finds and declares that: 
A.  The forested lands in Maine provide the source of raw materials for the timber 
products industry and jobs for persons who are employed in that industry; 
B.  Forested lands in Maine are an essential economic resource in rural communities 
across the State, and the economic pressures faced by the timber industry have 
resulted in financial losses to the Maine timber products industry; 
C.  The State has a legitimate interest in stating a preference that funds associated 
with its purchase of timber and its subsidization of timber harvesting and hauling be 
recycled through the local state economy; and 
D.  When price, quality and fitness are equal and when the marketplace provides 
timber that meets the State's needs for its own consumption, it is appropriate for the 
State to support the economic vitality of the Maine timber products industry by 
purchasing Maine timber. 
§1778.  Definitions 
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings. 
1.  In-state contractor.  "In-state contractor" means an individual residing in this 
State or a business based in this State.  "In-state contractor" includes: 
A.  If an individual, an individual who has a physical address in this State at which 
the individual has established residency and has filed a Maine tax return for at least 
the 2 years immediately prior to bidding on a state contract; or 
B.  If a business, a business that has a physical address in this State at which it 
conducts business, including interviewing applicants for employment by the business 
and hiring and employing staff, and: 
(1)  Has filed a Maine tax return or paid Maine employment taxes for at least the 
years immediately prior to bidding on a state contract; or 
(2)  If the business does not meet the requirements of subparagraph (1), an 
officer, if the business is a corporation, a partner in the business or the sole 
proprietor must meet the requirements of paragraph A. 
2.  Solid wood product.  "Solid wood product" does not include paper, paper 
products or other types of secondary manufactured goods.  "Solid wood product" includes 
wood chips, sawdust, bark, brush and other wood waste. 
3.  State agency.  "State agency" means any unit of State Government or local 
government, including any state board or commission, including the Legislature, the 
Judicial Department, the University of Maine System, the Maine Community College 
System and the Maine Maritime Academy. 
4.  Subsidy.  "Subsidy" means a benefit given to an individual, a business or a group 
of individuals or businesses for the purpose of promoting economic or social policy.  
"Subsidy" includes, but is not limited to, the elimination, reduction or deferral of a tax, 
the transfer of funds and the provision of aid or support. 
§1779.  Preference for timber harvested in the State 
1.  Acquisition by state agency.  Notwithstanding any other provision of law to the 
contrary, and to the extent consistent with federal law, a state agency that contracts for or 
acquires lumber or other solid wood products shall give preference to lumber and solid 
wood products that are harvested in the State by an in-state contractor, as long as the 
price, fitness and quality of the lumber or solid wood products are equal to that of lumber 
and solid wood products harvested outside the State. 
2.  State subsidies; penalty; enforcement.  Notwithstanding any other provision of 
law to the contrary, and to the extent consistent with federal law, if the State provides a 
subsidy to a person who purchases lumber or other solid wood products, the person shall 
give preference to lumber and solid wood products that are harvested in the State by an 
in-state contractor, as long as the price, fitness and quality of the lumber or solid wood 
products are equal to that of lumber and solid wood products harvested outside the State.  
The Superior Court, upon an action brought by the Attorney General, may assess against 
a person who violates this subsection a penalty of $250 for each violation.  Each load of 
lumber or solid wood products delivered pursuant to a purchase made in violation of this 
subsection constitutes a separate violation. 
3.  Exceptions.  A state agency may apply to the Department of Administrative and 
Financial Services for a waiver of the requirements of subsection 1 in any case or 
category of cases in which the executive head of the state agency finds that the 
application of the requirements of subsection 1 would be inconsistent with the public 
interest. 
4.  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. 
§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. 
SUMMARY 
This bill requires that a state agency that contracts for or acquires lumber or other 
solid wood products give preference to lumber and solid wood products that are harvested 
in the State by in-state contractors, as long as the price, fitness and quality of the lumber 
or solid wood products are equal to that of lumber and solid wood products harvested 
outside the State.  Under the bill, "state agency" includes departments and agencies of 
state, county and municipal government.  
The bill also requires that if the State provides a subsidy to a person who purchases 
lumber or other solid wood products, the person must give preference to lumber and solid 
wood products harvested in the State by in-state contractors, as long as the price, fitness 
and quality of the lumber or solid wood products are equal to that of lumber and solid 
wood products harvested outside the State.