An Act To Modernize the State's Procurement Laws
Maine Legislature, Session 128, LD 1535
Committee: State and Local Government
Sponsors: PICKETT, DAVIS, HARRINGTON, ORDWAY
Amends: 1 MRSA §501-A, 5 MRSA §43, 5 MRSA §244, 5 MRSA §1811, 5 MRSA §1812, 5 MRSA §1812-A, 5 MRSA §1812-B, 5 MRSA §1812-C, 5 MRSA §1812-D, 5 MRSA §1812-E, 5 MRSA §1813, 5 MRSA §1815, 5 MRSA §1816-A, 5 MRSA §1817, 5 MRSA §1818, 5 MRSA §1819, 5 MRSA §1825-A, 5 MRSA §1825-B, 5 MRSA §1825-C, 5 MRSA §1825-D, 5 MRSA §1825-E, 5 MRSA §1825-F, 5 MRSA §1825-G, 5 MRSA §1825-H, 5 MRSA §1825-K, 5 MRSA §1825-L, 5 MRSA §1825-M, 5 MRSA §1825-N, 5 MRSA §1825-O, 5 MRSA §1825-P, 5 MRSA §1825-Q, 5 MRSA §1825-R, 5 MRSA §1825-S, 5 MRSA §1826-C, 5 MRSA §1831, 7 MRSA §215, 23 MRSA §52, 28-A MRSA §83-C, 34-A MRSA §1403, 34-A MRSA §3004, 34-B MRSA §1404, 35-A MRSA §1908, 35-A MRSA §3210-C, 35-A MRSA §3212, 35-A MRSA §10105, 35-A MRSA §10110, 36 MRSA §191, 36 MRSA §4372-A, 36 MRSA §4404-C

Legislative Document
No. 1535
H.P. 1055
House of Representatives, April 25, 2017
An Act To Modernize the State's Procurement Laws
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Reference to the Committee on State and Local Government suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PICKETT of Dixfield.
Cosponsored by Senator DAVIS of Piscataquis and
Representatives: HARRINGTON of Sanford, ORDWAY of Standish.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  1 MRSA §501-A, sub-§§2, 3 and 6, as enacted by PL 1997, c. 299, §1, 
are amended to read: 
2.  Production and distribution.  The publications of all agencies, the University of 
Maine System and the Maine Maritime Academy may be printed, bound and distributed, 
subject to Title 5, sections 43 to 46. The State Purchasing Agent Chief Procurement 
Officer may determine the style in which publications may be printed and bound, with the 
approval of the Governor. 
3.  Annual or biennial reports.  Immediately upon receipt of any annual or biennial 
report that is not included in the Maine State Government Annual Report provided for in 
Title 5, sections 43 to 46, the State Purchasing Agent Chief Procurement Officer shall 
deliver at least 55 copies of that annual or biennial report to the State Librarian for 
exchange and library use.  The State Purchasing Agent Chief Procurement Officer shall 
deliver the balance of the number of each such report to the agency that prepared the 
report. 
6.  Forwarding of requisitions.  The State Purchasing Agent Chief Procurement 
Officer, Central Printing and all other printing operations within State Government shall 
forward to the State Librarian upon receipt one copy of all requisitions for publications to 
be printed. 
Sec. 2.  5 MRSA §43, last ¶, as repealed and replaced by PL 1975, c. 436, §3, is 
amended to read: 
The State Purchasing Agent Chief Procurement Officer shall distribute a reasonable 
number of copies of the report to each reporting agency, to legislative staff agencies and 
to each member of the Legislature, or, in the even-numbered years, to each member-elect 
taking office the following January. Eighty copies of the report shall must be delivered to 
the State Librarian for exchange and library use. The State Purchasing Agent Chief 
Procurement Officer shall prorate the cost of the report among the reporting agencies. He 
The Chief Procurement Officer shall provide for the sale of additional copies of the report 
to state agencies and the public at a reasonable price sufficient to cover the cost of 
printing and distribution. The income received under this section shall must be credited to 
an Intragovernmental Service Account, which shall must be carried forward and 
expended by the State Purchasing Agent Chief Procurement Officer for the purposes of 
sections 43 through 46. 
Sec. 3.  5 MRSA §244, last ¶, as enacted by PL 2003, c. 450, §4, is amended to 
read: 
By September 15th of each year, the State Auditor shall schedule a meeting with each 
joint standing committee of the Legislature having jurisdiction over those departments or 
agencies in the audit of which the State Auditor has identified findings and the joint 
standing committees of the Legislature having jurisdiction over appropriations and 
financial affairs and state and local government matters.  The State Auditor shall present 
an assessment of findings and recommendations of the most recently completed audit 
performed pursuant to this section, including, but not restricted to, questioned costs and 
material weaknesses of state programs.  The State Auditor shall notify affected state 
agencies and applicable state central service agency officials, such as, without limitation, 
the State Controller, State Budget Officer, State Purchasing Agent Chief Procurement 
Officer and Chief Information Officer, of the meeting time and place. 
Sec. 4.  5 MRSA §1811, sub-§1, ¶A, as amended by PL 1991, c. 780, Pt. Y, §62, 
is further amended to read: 
A.  The Director of the Bureau of General Services Chief Procurement Officer may 
establish dates by which departments and agencies of State Government must order 
standard forms that each department or agency requires, and to determine the quantity 
of each standard form to be printed in order to obtain savings resulting from volume 
purchasing; 
Sec. 5.  5 MRSA §1811, sub-§8, as amended by PL 2005, c. 12, Pt. T, §8, is 
further amended to read: 
8.  Cooperative purchasing.  To permit any political subdivision or school 
administrative district in the State or nonprofit free health care clinic that provides free 
primary or preventative services to make purchases of goods and services, including but 
not limited to foodstuffs, materials, equipment and supplies through the Bureau of 
General Services, subject to such procedures, rules and regulations as may be prescribed 
by the director. This subsection applies to a municipality notwithstanding any provision 
in its municipal charter to the contrary; 
Sec. 6.  5 MRSA §1811, sub-§11, as enacted by PL 2005, c. 12, Pt. T, §10, is 
amended to read: 
11.  Motor vehicle replacement policy.  To require that requisitions for replacement 
motor vehicles include the age and total mileage of the motor vehicles being replaced.  
For the purposes of this subsection, "motor vehicles" means passenger cars and panel and 
pickup trucks, excluding those vehicles authorized and assigned for pursuit purposes.  
Under no circumstances are any state vehicles to be used for commuting purposes.  It is 
the intent of the Legislature that motor vehicles be in service for at least 5 years or 75,000 
miles, whichever occurs first, before they are replaced.  This policy must also be adopted 
by the State Budget Officer when preparing a budget document.  Exceptions to this 
replacement policy require the prior approval of the Commissioner of Administrative and 
Financial Services.  The Commissioner of Administrative and Financial Services may 
also set appropriate standards with regard to motor vehicle type, size and equipment and 
direct that all motor vehicles be purchased in accordance with a commodity calendar 
established by the Director of the Bureau of General Services Chief Procurement Officer. 
Sec. 7.  5 MRSA §1812, as amended by PL 1991, c. 780, Pt. Y, §67, is further 
amended to read: 
§1812.  Scope of purchasing authority 
The terms "services," "goods," "commodities," "supplies," "materials" and 
"equipment" as used in this chapter mean any and all services labor, time or effort by a 
contractor or vendor, articles or things that are used by or furnished to the State or any 
department or agency thereof, and any and all printing, binding, publication of laws, 
journals and reports. Except as provided in chapters 141 to 155, any and all services, 
goods, commodities, supplies, materials and equipment needed by one or more 
departments or agencies of the State Government must be directly purchased or 
contracted for by the Director of the Bureau of General Services Chief Procurement 
Officer, as may be determined from time to time by rules adopted pursuant to chapters 
to 155, which rules the Department of Administrative and Financial Services is 
authorized and empowered to make. It is the intent and purpose of this chapter that the 
Director of the Bureau of General Services Chief Procurement Officer purchase 
collectively all services, goods, commodities, supplies, materials and equipment for the 
State or any department or agency thereof in a manner that will best secure the greatest 
possible economy consistent with the grade or quality of the services, goods, 
commodities, supplies, materials and equipment best adapted for the purposes for which 
they are needed. Whenever supplies and materials are available for purchase that are 
composed in whole or in part of recycled materials and are shown by the seller, supplier 
or manufacturer to be equal in quality and are competitively priced, except for paper and 
paper products, the Director of the Bureau of General Services Chief Procurement Officer 
shall purchase such recycled supplies and materials.  The Director of the Bureau of 
General Services Chief Procurement Officer shall also review procurement procedures 
and bid specifications for the purchase of products and materials to ensure, to the 
maximum extent feasible, the purchase of products or materials that are made with 
recycled materials or may be recycled or reused once discarded.  For the purposes of this 
section and section 1812-B, "recycled materials" means materials that are composed in 
whole or in part of elements that are reused or reclaimed. 
The Trustees of the University of Maine System may authorize the Department of 
Administrative and Financial Services to act for them in any purchases. 
The word "services," when used in this chapter, means any and all window cleaning 
services, elevator repair and maintenance services, laundry service, linen supply service, 
dry cleaning service, janitor service, floor maintenance service, rubbish and garbage 
disposal service, tree surgeon service, all types of office machine repair and maintenance 
service, exterminator service, refrigerator repair and maintenance service and oil burner 
repair and maintenance service when any such service is performed by an independent 
contractor. The Director of the Bureau of General Services may, with the approval of the 
Commissioner of Administrative and Financial Services add to or eliminate from the 
various types of service set forth in this paragraph such services performed by 
independent contractors as may be considered by the director to be in the best interests of 
the State. 
The Chief Procurement Officer is authorized to enter into or participate under 
multistate agreements and requests for proposals and bids for goods and services when it 
is demonstrated to be in the best interests of the State. The Chief Procurement Officer 
may also enter into or participate under competitively awarded agreements from the 
United States Government, other state or local governments or other public entities when 
the Chief Procurement Officer has determined that the competitive process used is 
substantially similar to that of this State. 
Sec. 8.  5 MRSA §1812-A, as amended by PL 1989, c. 585, Pt. C, §2, is further 
amended to read: 
§1812-A.  Report on purchase of recycled products 
The State Purchasing Agent Chief Procurement Officer shall report on or before 
January 1st of the First Regular Session of each Legislature to the joint standing 
committee of the Legislature having jurisdiction over natural resources on the State's 
efforts to purchase supplies and materials composed in whole or in part of recycled 
materials.  The State Purchasing Agent Chief Procurement Officer shall also report on 
any procurement policies, incentives, educational programs, promotional efforts or other 
activities undertaken by the Bureau of Purchases General Services to encourage the 
purchase of those supplies and materials.  The State Purchasing Agent Chief Procurement 
Officer shall include in the report any recommendations to increase or facilitate the 
purchase of those supplies and materials. 
Sec. 9.  5 MRSA §1812-B, as enacted by PL 1989, c. 585, Pt. C, §3, is amended to 
read: 
§1812-B.  Purchasing of paper and paper products 
1.  Purchase of paper and paper products with recycled material content.  
Subject to subsection 3, the State Purchasing Agent Chief Procurement Officer shall 
provide that of the total dollar amount spent in each fiscal year on paper and paper 
products purchased by the State: 
A.  On or after October 1, 1989, not less than 15% shall be spent on paper and paper 
products with recycled material content; 
B.  On or after October 1, 1991, not less than 30% shall be spent on paper and paper 
products with recycled material content; and 
C.   On or after October 1, 1993, not less than 50% shall be spent on paper and paper 
products with recycled material content. 
2.  Federal guidelines and cooperative purchases.  To qualify as having recycled 
material content, paper or paper products must have recycled material content which that 
meets or exceeds the standards established for that paper or paper product category in 
Table 1 of the Guideline for Federal Procurement of Paper and Paper Products, 40 Code 
of Federal Regulations, Part 250.  The State Purchasing Agent Chief Procurement Officer 
shall determine whether a paper or paper product qualifies.  The State Purchasing Agent 
Chief Procurement Officer may join with other states in making cooperative requests for 
bids to supply paper and paper products. 
3.  Bids; price preference.  A person who submits a bid for a contract to supply 
paper or paper products shall certify the percentage and nature of any recycled materials 
content in the product subject to bid.  Bids offering paper or paper products with recycled 
material content that are within 10% of the lowest bid that meets all other specifications 
may receive up to a 10% price preference.  Any bids to supply paper or paper products 
with recycled material content that exceed by more than 10% the low bid which that 
meets all other specifications shall may not be considered.  If no bids are received on a 
request for bids which that offer paper or paper products with recycled material content, 
the State Purchasing Agent Chief Procurement Officer may award the contract to a bidder 
whose paper or paper product has substandard percentages of or no recycled materials 
content. 
Sec. 10.  5 MRSA §1812-C, sub-§2, as enacted by PL 1991, c. 374, §2 and 
amended by PL 2011, c. 657, Pt. W, §5, is further amended to read: 
2.  Standards.  The Department of Agriculture, Conservation and Forestry shall 
develop standards for fertilizers and soil conditioners made from different mixes of 
compostible compostable wastes that could be used by state agencies involved in land 
preparation and improvement work.  These standards must be adopted by rule by January 
1, 1990. 
Sec. 11.  5 MRSA §1812-D, as enacted by PL 1989, c. 585, Pt. C, §3 and amended 
by PL 2011, c. 657, Pt. W, §5, is further amended to read: 
§1812-D.  Coordination of procurement information and policies 
The Bureau of Purchases General Services shall coordinate with the Department of 
Transportation, the Department of Agriculture, Conservation and Forestry, the 
Department of Environmental Protection and the Office of Waste Reduction and 
Recycling to develop a central data base of information including, but not limited to, 
procurement policies, market information, technical data and demonstration project 
results.  This data shall must be compiled annually and provided to local public agencies 
by the Office of Waste Reduction and Recycling. 
Sec. 12.  5 MRSA §1812-E, first ¶, as enacted by PL 1991, c. 207, is amended to 
read: 
Except for cars and light duty trucks purchased for law enforcement and other special 
use purposes as designated by the State Purchasing Agent Chief Procurement Officer, the 
State Purchasing Agent Chief Procurement Officer may not purchase or lease any car or 
light duty truck for use by the State or any department or agency of the State unless: 
Sec. 13.  5 MRSA §1813, first ¶, as amended by PL 1991, c. 780, Pt. Y, §68, is 
further amended to read: 
The Director of the Bureau of General Services Chief Procurement Officer, with the 
approval of the Commissioner of Administrative and Financial Services, may adopt, 
modify or abrogate rules for the following purposes: 
Sec. 14.  5 MRSA §1813, sub-§8 is amended to read: 
8.  Other matters.  Providing for such other matters as may be necessary to give 
effect to the foregoing rules and to chapters 141 to 155.; and 
Sec. 15.  5 MRSA §1813, sub-§9 is enacted to read: 
9.  Compliance.  Providing a process whereby any department or agency that 
purchases goods or services contrary to chapter 141 or this chapter or rules adopted 
pursuant to chapter 141 or this chapter may have funding removed from that department's 
or agency's existing General Fund appropriation or other funds as applicable.  Such a 
process must include reasonable investigation and review by the Chief Procurement 
Officer, consultation with the Commissioner of Administrative and Financial Services 
and the State Budget Officer and approval by the Governor or the Governor's designee. 
Sec. 16.  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 Chief Procurement Officer. The State 
Purchasing Agent Chief Procurement Officer, or his the Chief Procurement Officer's 
authorized representative, shall examine each requisition submitted to him the Chief 
Procurement Officer 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. 17.  5 MRSA §1816-A, sub-§2, ¶I, as enacted by PL 2003, c. 501, §1 and 
affected by §3, is amended to read: 
I.    An equivalent basis for cost comparison between state employee and private 
contractor provision of services is calculated, as established by rules adopted by the 
State Purchasing Agent Chief Procurement Officer pursuant to section 1825-B, 
subsection 11, and it is determined that the private contractor provides the best value. 
Sec. 18.  5 MRSA §1817, as amended by PL 2015, c. 102, §8, is further amended 
to read: 
§1817.  Printing of laws 
When the Revisor of Statutes has prepared material for a revision of the entire 
statutes of the State, the revisor Revisor of Statutes shall deliver the revision prepared for 
printing to the State Purchasing Agent Chief Procurement Officer, who shall contract for 
the printing, binding and delivery to the State of a sufficient number of volumes to meet 
the needs of the State and for sale as provided. 
Sec. 19.  5 MRSA §1818 is amended to read: 
§1818.  Deliveries 
Supplies, materials and equipment, purchased or contracted for by the State 
Purchasing Agent Chief Procurement Officer, shall must be delivered by him the Chief 
Procurement Officer or by the contractor to the department or agency by which or for 
whom the same are to be used from time to time as required. 
Sec. 20.  5 MRSA §1819 is amended to read: 
§1819.  Unlawful purchases 
Whenever any department or agency of the State Government, required by chapters 
to 155 and rules and regulations adopted pursuant thereto to those chapters, applying 
to the purchase of services, supplies, materials or equipment through the State Purchasing 
Agent Chief Procurement Officer, shall contract for the purchase of such services, 
supplies, materials or equipment contrary to chapters 141 to 155 or the rules and 
regulations made hereunder adopted pursuant to those chapters, such the contract shall be 
is void and have has no effect. If any such department or agency purchases any services, 
supplies, materials or equipment contrary to chapters 141 to 155 or rules and regulations 
made hereunder adopted pursuant to those chapters, the head of such the department or 
agency shall be is personally liable for the costs thereof, and if such the services, supplies, 
materials or equipment are so unlawfully purchased and paid for out of state moneys, the 
amount thereof may be recovered in the name of the State in an appropriate action 
instituted therefor.  
Sec. 21.  5 MRSA §1825-A, sub-§§2 and 3, as enacted by PL 1989, c. 785, §2, 
are amended to read: 
2.  Approved equal.  "Approved equal" means any goods or service other than 
specified in the bid proposal that in the opinion of the State Purchasing Agent Chief 
Procurement Officer is equivalent in character, quality and performance to the goods or 
service specified in the bid proposal. 
3.  Competitive bidding.  "Competitive bidding" means the transmission of a written 
proposal or invitation to bid to at least 3 responsible suppliers that is to be replied to at a 
stated time.  In obtaining competitive bids, if the State Purchasing Agent Chief 
Procurement Officer finds that 3 responsible bidders are not available, the State 
Purchasing Agent Chief Procurement Officer may make such exceptions to this 
subsection as are in the best interests of the State. 
Sec. 22.  5 MRSA §1825-B, as amended by PL 2015, c. 179, §2, is further 
amended to read: 
§1825-B.  Bids, awards, contracts and grants 
1.  Purchases by competitive bidding.  The Director of the Bureau of General 
Services Chief Procurement Officer shall purchase collectively all goods and services for 
the State or any department or agency of the State in a manner that best secures the 
greatest possible economy consistent with the required grade or quality of the goods or 
services.  Except as otherwise provided by law, the Director of the Bureau of General 
Services Chief Procurement Officer shall make purchases of goods or services needed by 
the State or any department or agency of the State through competitive bidding. 
2.  Waiver.  The requirement of competitive bidding may be waived by the Director 
of the Bureau of General Services Chief Procurement Officer when: 
A.  The procurement of goods or services by the State for county commissioners 
pursuant to Title 30-A, section 124, involves the expenditure of $2,500 or less, and 
the interests of the State would best be served; 
B.  The Director of the Bureau of General Services Chief Procurement Officer is 
authorized by the Governor or the Governor's designee to make purchases without 
competitive bidding because in the opinion of the Governor or the Governor's 
designee an emergency exists that requires the immediate procurement of goods or 
services; 
C.  After reasonable investigation by the Director of the Bureau of General Services 
Chief Procurement Officer, it appears that any required unit or item of supply, or 
brand of that unit or item, is goods or services are procurable by the State from only 
one source; 
D.  It appears to be in the best interest of the State to negotiate for the procurement of 
energy-related commodities, such as petroleum products, natural gas and electricity; 
E.  The purchase is part of a cooperative project between the State and the University 
of Maine System, the Maine Community College System, the Maine Maritime 
Academy or a private, nonprofit, regionally accredited institution of higher education 
with a main campus in this State involving: 
(1)  An activity assisting a state agency and enhancing the ability of the 
university system, community college system, Maine Maritime Academy or a 
private, nonprofit, regionally accredited institution of higher education with a 
main campus in this State to fulfill its mission of teaching, research and public 
service; and 
(2)  A sharing of project responsibilities and, when appropriate, costs; 
F.  The procurement of goods or services involves expenditures of $10,000 $25,000 
or less, in which case the Director of the Bureau of General Services Chief 
Procurement Officer may accept oral proposals or bids; or 
G.  The procurement of goods or services involves expenditures of $10,000 $25,000 
or less, and procurement from a single source is the most economical, effective and 
appropriate means of fulfilling a demonstrated need.; or 
H.  After reasonable investigation by the Chief Procurement Officer, it appears that 
the procurement of goods or services involves contract awards to any source that is 
willing and qualified to supply the goods or perform the services requested at a fair 
and reasonable cost.  A determination that the source is qualified and the cost is fair 
and reasonable is at the discretion of the Chief Procurement Officer and subject to the 
approval of the Commissioner of Administrative and Financial Services. 
3.  Report.  By January 15th of each year the Director of the Bureau of General 
Services Chief Procurement Officer shall submit to the joint standing committee of the 
Legislature having jurisdiction over state and local government matters a report 
concerning any waivers from the competitive bidding provisions established in subsection 
2, paragraph E. 
4.  Registry of suppliers.  Suppliers desiring to have their names entered on a 
registry of suppliers must submit a request to the Director of the Bureau of General 
Services Chief Procurement Officer in writing.  The Director of the Bureau of General 
Services Chief Procurement Officer may prescribe the manner and form in which such a 
request must be submitted and may limit the number of names of out-of-state bidders on 
any registry.  The name of any supplier entered in such a registry who fails to submit a 
bid on 3 consecutive proposals or invitations to bid may be removed from the registry at 
the discretion of the Director of the Bureau of General Services Chief Procurement 
Officer, except that the Department of Corrections remains on any registry until the 
Department of Corrections requests that the department be removed from that registry. 
5.  Alternate bids.  When, in bid forms and specifications, an article or material is 
identified by using a trade name and catalog number of a manufacturer or vendor, the 
term "or approved equal," if not inserted with the identification, is implied.  There is a 
presumption that any reference to a particular manufacturer's product either by trade 
name or by limited description has been made solely for the purpose of more clearly 
indicating the minimum standard of quality desired.  Consideration must be given to 
proposals submitted on approved equal alternate commodities to the extent that such 
action serves the best interest of the State.  The bidder submitting a proposal on a 
commodity other than as specified shall furnish complete identification, descriptive 
literature or data with respect to the alternate commodity that the bidder proposes to 
furnish.  Lack of such information on the bid must be construed to mean that the bidder 
proposes to furnish the exact commodity described.  The State reserves the right to reject 
any bids, in whole or in part, to waive any formality or technicality in any bid and to 
accept any item in any bid. 
6.  Record of bids.  Each bid, with the name of the bidder, must be entered on a 
record.  Each record, with the successful bid indicated, must be open to public inspection 
after the letting of the contract or grant.  A bond for the proper performance of each 
contract or grant may be required of each successful bidder at the discretion of the 
Director of the Bureau of General Services Chief Procurement Officer, with the approval 
of the Commissioner of Administrative and Financial Services. 
7.  Awards to best-value bidder.  Except as otherwise provided by law, 
competitively awarded orders, grants or contracts made by the Director of the Bureau of 
General Services Chief Procurement Officer or by any department or agency of the State 
must be awarded to the best-value bidder, taking into consideration the qualities of the 
goods or services to be supplied, their conformity with the specifications, the purposes for 
which they are required, the date of delivery and, the best interest of the State and any 
criteria identified within the State's competitive bidding documents for any given 
purchase.  If the bidder that was initially awarded the order, grant or contract does not 
perform, the Director of the Bureau of General Services Chief Procurement Officer may 
cancel the order, grant or contract and award a new order, grant or contract to the 2nd 
best-value bidder.  The order, grant or contract may not be awarded to a bidder that the 
Director of the Bureau of General Services Chief Procurement Officer determined was 
not in compliance at the time the initial bid was submitted. 
8.  Tie bids.  The Director of the Bureau of General Services Chief Procurement 
Officer shall award contracts, grants or purchases to in-state bidders or to bidders offering 
services or offering commodities produced or manufactured in the State if the price, 
quality, availability and other factors are equivalent.  If there is a tie that cannot be 
otherwise resolved based on the bidders' locations, the State has the option of contacting 
the tied bidders and inviting them to submit new cost proposals. The bidder with the 
lowest cost will receive the award, unless a decision is reached to not make an award to 
any bidder. 
9.  Reciprocity and the determination of best-value bidder.  In determining the 
best-value bidder, the Director of the Bureau of General Services Chief Procurement 
Officer or any department or agency of the State shall, for the purpose of competitively 
awarding a contract or grant, add a percent increase on the bid of a nonresident bidder 
equal to the percent, if any, of the preference given to that bidder in the state in which the 
bidder resides. 
10.  List of state preferences published.  The Director of the Bureau of General 
Services Chief Procurement Officer on or before January 1st of each year shall publish a 
list of states that give preference to in-state bidders with the percent increase applied in 
each such state.  The Director of the Bureau of General Services Chief Procurement 
Officer or any department or agency of the State may rely on the names of states and 
percentages as published in determining the best-value bidder without incurring any 
liability to any bidder. 
11.  Rulemaking; unfair competition.  State departments and agencies may not 
achieve cost savings due to cost differentials that derive from a bidder's failure to provide 
health and retirement benefits to its employees.  The State Purchasing Agent Chief 
Procurement Officer shall adopt rules governing the purchase of services and the 
awarding of grants or contracts for personal services to establish a basis for bid price and 
cost comparison among businesses that provide health and retirement benefits to their 
employees and those that do not provide these benefits.  The rules must include a 
methodology for calculating bid price and cost differentials for services provided by 
businesses and state employees due to the provision of health and retirement benefits for 
employees.  The rules must adjust the bid prices to establish an equivalent basis for bid 
price and cost comparison among businesses when awarding contracts or grants and 
between businesses and state employees when determining whether or not a contract or 
grant is permitted under section 1816-A.  These rules must apply to all state departments 
and agencies.  Rules adopted pursuant to this subsection are routine technical rules as 
defined in chapter 375, subchapter 2-A. 
12.  Vendor's fee.  The State Purchasing Agent Chief Procurement Officer may 
collect a fee in an amount equal to 1% of the bid from a supplier of apparel, footwear or 
textiles with a winning bid under this section.  The State Purchasing Agent Chief 
Procurement Officer shall apply the fee under this subsection to the costs of 
implementing and administering the state purchasing code of conduct under section 
1825-L, including developing a consortium to monitor and investigate alleged violations 
of the code of conduct.  The State Purchasing Agent Chief Procurement Officer shall 
adopt routine technical rules under chapter 375, subchapter 2-A to carry out the purposes 
of this subsection. 
13.  Vendor's fee report.  By January 15th of each year the Director of the Bureau of 
General Services Chief Procurement Officer shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over state and local government matters 
concerning revenue generated by the vendor's fee established in subsection 12. 
14.  Condition of doing business with the State.  Notwithstanding any provision of 
law to the contrary, any purchase by the State of $100,000 or more of tangible personal 
property, except for public utility purchases, as defined in Title 36, section 1752, 
subsection 17, or emergency purchases pursuant to subsection 2, paragraph B, may be 
made only from a person who is registered as a seller pursuant to Title 36, section 
1754-B.  As a condition of doing business with the State, the seller must collect, report 
and remit taxes in accordance with Title 36, Part 3.  As provided in this subsection, the 
State is prohibited from doing business with a person who is not registered as a seller 
pursuant to Title 36, section 1754-B and is not in compliance with the requirement to 
collect, report and remit taxes pursuant to Title 36, Part 3.  After notification of the 
award, the seller must provide the State Purchasing Agent Chief Procurement Officer 
with a valid retailer certificate issued by the State Tax Assessor within 7 business days.  
If the seller fails to provide the registration certificate within 7 business days, the State 
Purchasing Agent Chief Procurement Officer may cancel the award and make a new 
award pursuant to subsection 7.  The State Purchasing Agent Chief Procurement Officer 
shall provide the State Tax Assessor with a copy of all contracts and grants awarded 
pursuant to this section.  The State Tax Assessor shall notify the State Purchasing Agent 
Chief Procurement Officer if at any time during the term of the contract or grant the 
person is no longer registered or is not collecting, reporting and remitting taxes in 
compliance with the requirements of Title 36, Part 3.  Until the noncompliance is 
corrected, the State Purchasing Agent Chief Procurement Officer may withhold any 
payments to the person. 
Sec. 23.  5 MRSA §1825-C, as amended by PL 2015, c. 179, §3, is further 
amended to read: 
§1825-C.  Rulemaking 
The State Purchasing Agent Chief Procurement Officer shall adopt rules under this 
subchapter governing the purchase of services, the awarding of grants or contracts and the 
procedure by which aggrieved persons may appeal award decisions made by a department 
or agency of State Government.  These rules must be adopted in accordance with the 
Maine Administrative Procedure Act and apply to all departments and agencies of State 
Government subject to the authority of the Department of Administrative and Financial 
Services as set forth in this chapter. 
Sec. 24.  5 MRSA §1825-D, first ¶, as amended by PL 2015, c. 179, §4, is further 
amended to read: 
The State Purchasing Agent Chief Procurement Officer shall make the public aware 
of contracts and grants for which bids are being requested and the procedure to be used in 
reviewing bids.  Rules adopted under this subchapter must include a clear procedure: 
Sec. 25.  5 MRSA §1825-D, sub-§2, as enacted by PL 1989, c. 785, §2, is 
amended to read: 
2.  Review process.  To be used when reviewing competitive bids, including the 
requirement that written records be kept by each person directly reviewing or ranking of 
the evaluation of bids; 
Sec. 26.  5 MRSA §1825-D, last ¶, as enacted by PL 1989, c. 785, §2, is amended 
to read: 
A department or agency of State Government may not change or substitute the 
procedures adopted under this subchapter without the State Purchasing Agent Chief 
Procurement Officer first adopting those changes or substitutions as rules under this 
subchapter in accordance with the Maine Administrative Procedure Act, chapter 375. 
Sec. 27.  5 MRSA §1825-E, as amended by PL 2015, c. 179, §6, is further 
amended to read: 
§1825-E.  Appeal procedures 
The Director of the Bureau of General Services Chief Procurement Officer shall 
ensure that every department or agency of State Government affords aggrieved persons 
an opportunity to appeal a contract or grant award decision.  As provided by this section, 
rules adopted under this subchapter must establish clear procedures by which an 
aggrieved person may appeal a contract or grant award decision. 
1.  Stay.  Persons aggrieved by a contract or grant award decision may request a stay 
of an award decision.  Such a request must be made to the Director of the Bureau of 
General Services Chief Procurement Officer in writing within 10 days of notification of 
the contract or grant award and must state the nature of the grievance. 
The Director of the Bureau of General Services Chief Procurement Officer shall issue a 
stay of a contract or grant award decision, pending appeal, upon a showing of irreparable 
injury to the petitioner, a reasonable likelihood of success on the merits and no substantial 
harm to adverse parties or to the general public. 
The Director of the Bureau of General Services Chief Procurement Officer shall notify 
the petitioner in writing of the director's decision regarding the issuance of a stay within 7 
days of receipt of the request. 
Failure of the petitioner to obtain a stay does not affect the petitioner's right to a hearing 
of appeal under this subchapter. 
2.  Request for hearing of appeal.  Persons aggrieved by an agency contract or grant 
award decision under this subchapter may request a hearing of appeal.  Such a request 
must be made to the Director of the Bureau of General Services Chief Procurement 
Officer in writing within 15 days of notification of the award.  The Director of the Bureau 
of General Services Chief Procurement Officer shall grant a hearing of appeal unless: 
A.  The Director of the Bureau of General Services Chief Procurement Officer 
determines that: 
(1)  The petitioner is not an aggrieved person; 
(2)  A prior request by the same petitioner relating to the same contract or grant 
award has been granted; 
(3)  The request was made more than 15 days after notice of contract or grant 
award; or 
(4)  The request is capricious, frivolous or without merit; or 
B.  No contract or grant was awarded. 
The Director of the Bureau of General Services Chief Procurement Officer shall notify 
the petitioner in writing of the director's decision regarding a request for a hearing of 
appeal within 15 days of receipt of the request.  If a request for a hearing is granted, 
notification must be made at least 10 days before the hearing date and must include the 
date and location of the hearing and the names of the appeal committee members. 
3.  Appeal committee.  A committee of 3 members shall hear a petitioner's appeal 
within 60 days of receipt of the request for an appeal.  The Commissioner of 
Administrative and Financial Services shall appoint 2 members of an appeal committee, 
except that persons who have any direct or indirect personal, professional or financial 
conflict of interest in the appeal or employees of any department affected by the contract 
or grant may not serve on the appeal committee.  The 3rd member is the Director of the 
Bureau of General Services Chief Procurement Officer or the director's designee. 
Members of an appeal committee appointed under this section shall meet at the appointed 
time and place in the presence of the petitioner and such individuals as the petitioner 
determines necessary for a full and fair hearing.  The petitioner may present to the appeal 
committee any materials the petitioner considers relevant to the appeal. 
The appeal committee shall keep a written record of each hearing and shall submit its 
decision and the reasons for its decision to the Director of the Bureau of General Services 
Chief Procurement Officer in writing no later than 15 days following the hearing of 
appeal. 
Subject to the requirements of rules adopted under this section and evidence presented 
during a hearing of appeal, the appeal committee may decide either to: 
A.  Validate the contract or grant award decision under appeal; or 
B.  Invalidate the contract or grant award decision under appeal. 
Except as provided in paragraph B, an appeal committee may not modify the contract or 
grant award under appeal, or make a new award.  Contracts or grants found invalid by an 
appeal committee under this subchapter become immediately void and of no legal effect. 
4.  Appeal cost reimbursement. Costs for an unsuccessful appeal request, or for a 
hearing of appeal that results in the validation of the State's contract or grant award 
decision, must be borne by the person requesting the appeal, and must include reasonable 
staff costs and attorney's fees incurred by the State as a result of the appeal process, as 
provided in rules adopted pursuant to this subchapter.  Rules adopted pursuant to this 
subsection are routine technical rules as defined in chapter 375, subchapter 2-A. 
Sec. 28.  5 MRSA §1825-F, first ¶, as amended by PL 1993, c. 192, §2, is further 
amended to read: 
Decisions made by an appeal committee under section 1825-E, subsection 3 
constitute final agency action on the petitioner's appeal for the purposes of judicial review 
under chapter 375, subchapter VII 7.  The State Purchasing Agent Chief Procurement 
Officer shall notify a petitioner of a final agency action made under this subchapter in 
writing within 7 days of the final agency action.  Notification of final agency action must 
include: 
Sec. 29.  5 MRSA §1825-G, as amended by PL 2015, c. 179, §7, is further 
amended to read: 
§1825-G.  Failure to act 
Failure or refusal of the State Purchasing Agent Chief Procurement Officer to adopt 
rules under this subchapter is sufficient grounds for an aggrieved person to request 
judicial review of agency rulemaking pursuant to section 8058.  In the event that a 
judicial declaration of an invalid rule is made under this section and section 8058, the 
contract or grant award under appeal becomes immediately void and of no legal effect. 
Sec. 30.  5 MRSA §1825-H, as enacted by PL 1989, c. 785, §2, is amended to 
read: 
§1825-H.  Deadline for adoption of rules 
The State Purchasing Agent Chief Procurement Officer shall adopt rules 
implementing this subchapter no later than January 1, 1991. 
Sec. 31.  5 MRSA §1825-K, sub-§§3 to 5, as enacted by PL 2005, c. 554, Pt. A, 
§1, are amended to read: 
3.  Availability of copy of code of conduct.  The State Purchasing Agent Chief 
Procurement Officer shall make a copy of the state purchasing code of conduct available 
to all bidders subject to this subchapter. 
4.  Affidavit requirement.  The State Purchasing Agent Chief Procurement Officer 
may not accept a bid for the sale of goods covered by this subchapter unless: 
A.    Prior to the close of the bidding deadline, the bidder has filed with the agent a 
signed affidavit, executed and filed by a person authorized to commit the bidder to 
the code of conduct, stating: 
(1)  That the bidder will comply with the code of conduct; 
(2)  That the bidder has furnished a copy of the code of conduct to each supplier 
at the point of assembly of the goods subject to the bid process and required that 
each supplier inform the bidder of whether the supplier is in compliance with the 
code of conduct; and 
(3)  That, to the best of the bidder's knowledge, each supplier at the point of 
assembly of the goods subject to the bid process is in compliance with the code 
of conduct; and 
B.    The bidder has submitted a list of the names and addresses of suppliers at the 
point of assembly of goods subject to the bid process. 
5.  Affidavit update requirement.  If, after complying with the filing requirements 
of this section, a bidder is awarded a contract, that contractor must, during the term of the 
contract, promptly inform the State Purchasing Agent Chief Procurement Officer of any 
change in the information furnished in the affidavit submitted at the time of the original 
bid and must submit a new, updated affidavit that conforms with the requirements of 
subsection 4. 
Sec. 32.  5 MRSA §1825-L, sub-§1, as enacted by PL 2001, c. 439, Pt. NNNN, 
§1, is amended to read: 
1.  Statement of belief; protection of local interests.  The affidavit provided by the 
State Purchasing Agent Chief Procurement Officer to bidders for contracts to provide 
goods covered by this subchapter must include a copy of the following statement: 
"Maine is a state that believes employers should fairly compensate hard work, that 
the health and safety of working people should be protected and that no form of 
unlawful discrimination or abuse should be tolerated.  Maine citizens are aware that 
laws and regulations designed to safeguard basic tenets of ethical business practice 
are disregarded in many workplaces, commonly referred to as "sweatshops."  State 
Government purchase of goods made under abusive conditions on behalf of its 
citizens offends Maine citizens' sense of justice and decency.  Moreover, when the 
substandard wages and working conditions, Maine's businesses are put at a 
competitive disadvantage.  Therefore, the State of Maine believes in doing business 
with vendors who make a good faith effort to ensure that they and their suppliers at 
the point of assembly adhere to the principles of the State of Maine's purchasing code 
of conduct. 
"In its role as a market participant that procures goods covered by this code, the State 
of Maine seeks to protect the interests of Maine citizens and businesses by exercising 
its state sovereignty to spend Maine citizens' tax dollars in a manner consistent with 
their expressed wishes that the State deal with responsible bidders who seek contracts 
to supply goods to the State of Maine, and protect legally compliant Maine 
businesses and workers from unfair competition created by downward pressure on 
prices and conditions attributable to businesses that violate applicable workplace 
laws. 
"Seeking to protect these local interests through the least discriminatory means 
available, the State of Maine requires that all bidders seeking contracts to supply the 
to the best of their knowledge, their suppliers at the point of assembly comply with 
workplace laws of the vendor's or supplier's site of assembly and with treaty 
obligations that are shared by the United States and the country in which the goods 
are assembled." 
Sec. 33.  5 MRSA §1825-M, as enacted by PL 2001, c. 439, Pt. NNNN, §1, is 
amended to read: 
§1825-M.  Exception 
The State Purchasing Agent Chief Procurement Officer may accept and award a bid 
to a supplier who has not met the requirements provided in section 1825-K if, after 
reasonable investigation by the State Purchasing Agent Chief Procurement Officer, it 
appears that the required unit or item of supply or brand of that unit or item, is procurable 
by the State from only that supplier. 
Sec. 34.  5 MRSA §1825-N, as amended by PL 2005, c. 554, Pt. A, §3, is further 
amended to read: 
§1825-N.  Support to suppliers of goods and services 
The State Purchasing Agent Chief Procurement Officer shall provide to bidders and 
contractors resources to assist with compliance with the state purchasing code of conduct 
established in this subchapter.  These resources must include a list, easily accessed by the 
public, of bidders and vendors who have adopted the state purchasing code of conduct. 
Sec. 35.  5 MRSA §1825-O, first ¶, as enacted by PL 2001, c. 439, Pt. NNNN, 
§1, is amended to read: 
The State Purchasing Agent Chief Procurement Officer shall adopt rules under this 
subchapter governing the award of bids. Those rules must include specific guidelines for 
vendors to follow in order to comply with the state purchasing code of conduct and 
criteria for seeking disclosure of names and addresses of vendors' suppliers and suppliers' 
working conditions. 
Sec. 36.  5 MRSA §1825-P, as enacted by PL 2001, c. 439, Pt. NNNN, §1, is 
amended to read: 
§1825-P.  Report 
By January 15th of each year, the State Purchasing Agent Chief Procurement Officer 
shall submit a report to the joint standing committee of the Legislature having jurisdiction 
over state and local government matters concerning the administrative and fiscal impact 
of the requirement that vendors comply with the state purchasing code of conduct; the 
degree of voluntary compliance with the state purchasing code of conduct; the number of 
vendors who agreed to and the number that declined to comply with the provisions of this 
subchapter; and any other information relevant to the state purchasing code of conduct. 
Sec. 37.  5 MRSA §1825-Q, as corrected by RR 2005, c. 2, §4, is amended to 
read: 
§1825-Q.  Complaints of noncompliance with code of conduct; investigations of 
complaints 
1.  Complaints alleging noncompliance.  The State Purchasing Agent Chief 
Procurement Officer shall initiate an investigation to determine whether a violation of the 
code of conduct has occurred if: 
A.  The State Purchasing Agent Chief Procurement Officer has independent 
knowledge that a contractor or a supplier at the point of assembly of goods subject to 
a contract is not in compliance with the code of conduct; 
B.  The contractor informs the State Purchasing Agent Chief Procurement Officer 
that the contractor or a supplier at the point of assembly of goods subject to a contract 
is not in compliance with the code of conduct; 
C.  A worker for a contractor or for a supplier at the point of assembly of goods 
subject to a contract files a written complaint directly with the State Purchasing 
Agent Chief Procurement Officer stating that the contractor or supplier, to the best of 
the worker's knowledge, is not in compliance with the code of conduct; 
D.  A 3rd party established and based outside the United States, on behalf of or on the 
basis of information from a worker or workers, files directly with the State 
Purchasing Agent Chief Procurement Officer a signed and dated written complaint 
stating that, to the best of the 3rd party's knowledge, a contractor or a supplier at the 
point of assembly of goods subject to a contract is not in compliance with the code of 
conduct.  If possible, the 3rd party's written complaint must be signed and dated 
under oath before an official authorized to administer oaths; or 
E.    A 3rd party established and based in the United States, on behalf of or on the 
basis of information from a worker or workers, files directly with the State 
Purchasing Agent Chief Procurement Officer a written complaint, signed and dated 
under oath before an official authorized by applicable law to administer oaths, stating 
that, to the best of the 3rd party's knowledge, a contractor or a supplier at the point of 
assembly of goods subject to a contract is not in compliance with the code of 
conduct. 
2.  Specificity required.  Any complaint made to the State Purchasing Agent Chief 
Procurement Officer must state with reasonable specificity each reason a party subject to 
the complaint is allegedly not in compliance with the code of conduct. 
3.  Notification to party subject to complaint.  After receiving a complaint alleging 
noncompliance with the code of conduct, the State Purchasing Agent Chief Procurement 
Officer shall contact in a timely manner, in writing and by certified letter, the contractor 
that is the subject of the complaint or whose supplier is the subject of the complaint. 
Sec. 38.  5 MRSA §1825-R, as enacted by PL 2005, c. 554, Pt. A, §5, is amended 
to read: 
§1825-R.  Determinations of noncompliance with code of conduct 
1.  Relevant information.  In making a determination of whether a violation of the 
code of conduct has occurred, the State Purchasing Agent Chief Procurement Officer may 
take into account any factors, information, sources of information and materials 
determined reliable and relevant by the State Purchasing Agent Chief Procurement 
Officer, as determined on a case-by-case basis.  The State Purchasing Agent Chief 
Procurement Officer has specific authority and discretion to employ an independent 
monitor to investigate a complaint. 
2.  Determination by the Chief Procurement Officer.  The determination of 
whether a party subject to a complaint is in compliance with the code of conduct is solely 
that of the State Purchasing Agent Chief Procurement Officer. 
3.  Notice of determination.  After rendering a determination under this section, the 
State Purchasing Agent Chief Procurement Officer promptly shall inform the complainant 
and contractor in writing. 
Sec. 39.  5 MRSA §1825-S, as amended by PL 2007, c. 193, §3, is further 
amended to read: 
§1825-S.  Consequences of noncompliance with code of conduct 
1.  Action by Chief Procurement Officer.  Upon determination of a violation of the 
code of conduct by a contractor or contractor's supplier at the point of assembly of goods 
covered by this subchapter, the State, through the State Purchasing Agent Chief 
Procurement Officer, shall inform the contractor and engage in discussions with the 
contractor about the violation. The purpose of the discussions is to work in partnership 
with the contractor to influence the contractor to change its practices or to use its 
bargaining position with the offending supplier to change the supplier's practices, rather 
than to cease doing business with the contractor or supplier. The State Purchasing Agent 
Chief Procurement Officer shall prescribe appropriate measures to ensure compliance 
with the code of conduct. These measures may include, but are not limited to: 
A.  Requesting that each party found not to be in compliance with the code of 
conduct provide continued access to independent monitors, if available; 
B.  Requesting that each party found not to be in compliance with the code of conduct 
offer their workers and managers the training and guidelines necessary to bring the 
workplace into compliance with the code of conduct; and 
C.  Requesting that each party found not to be in compliance with the code of conduct 
demonstrate to the State Purchasing Agent Chief Procurement Officer that prescribed 
changes or improvements have been completed and implemented. 
2.  Termination of contract.  If, in the opinion of the State Purchasing Agent Chief 
Procurement Officer, a contractor that has been determined as not in compliance with the 
code of conduct does not make good faith efforts to change its practices or use its 
bargaining position with an offending supplier to change the supplier's practices, the State 
Purchasing Agent Chief Procurement Officer may take appropriate remedial action 
including, but not limited to, barring the subject contractor from bidding on future state 
contracts or terminating the State's contract with the contractor.   Reference to the 
authority given in this subsection must be specifically referenced in the State's contracts 
with those contractors that are subject to the code of conduct. 
Sec. 40.  5 MRSA §1826-C, sub-§§4 to 7, as amended by PL 2007, c. 395, §3, 
are further amended to read: 
4.  Work center purchases schedule.   The director Chief Procurement Officer shall 
develop and use a work center purchases schedule. The director shall:  
A.  Identify and develop a list of all products and services purchased or scheduled to 
be purchased by State Government; 
B.  Identify and develop a list of all work centers in the State, including a description 
of the products and services work centers are currently providing or have recently 
provided and including an assessment of the products and services that work centers 
are capable of providing, but have not recently provided; and 
C.  Develop from the information obtained in paragraphs A and B a work center 
purchases schedule that describes all products and services to be purchased by the 
State that, in the view of the director Chief Procurement Officer, could be provided 
by work centers. In developing this schedule, the director Chief Procurement Officer 
shall give consideration to the abilities of work centers to meet contract requirements 
and to meet generally accepted quality control standards and any potential technical 
assistance that may be required to enable a work center to compete fairly for 
contracts, pursuant to this subchapter. 
5.  Competitive bidding.  The director Chief Procurement Officer shall develop 
procedures for competitive bidding by eligible work centers only for products and 
services identified on the work center purchase schedule. If no bid is received from a 
work center for any product or service on the schedule, the director shall confer with the 
Department of Corrections to determine whether the Department of Corrections is able to 
provide the product or service at a fair price.  If the director and the Department of 
Corrections do not come to agreement, the product or service must be put out to general 
bid by the director, in accordance with standard rules and procedures. If only one work 
center bid is received, the director shall review the bid and make a determination 
regarding the fairness of the price and terms of the proposed contract. If the director 
determines that the work center may not be awarded this bid, the director shall confer 
with the Department of Corrections to determine whether the Department of Corrections 
is able to provide the product or service at a fair price.  If the director and the Department 
of Corrections do not come to agreement, the contract must be offered for standard 
competitive bid by the director in accordance with standard rules and procedures Work 
centers must compete for the State's bid opportunities in conjunction with all other 
bidders providing a given service or product. 
6.  Award of contracts; fair price.  The director Chief Procurement Officer has final 
determination in awarding contracts to work centers through the competitive bidding 
process. The director's Chief Procurement Officer's judgment prevails in the 
determination that the price and contract terms are fair and reasonable both to the work 
center and to the State. In determining a fair price, the director Chief Procurement Officer 
shall ensure the ability of the work center to recover the costs of labor, material, 
equipment, overhead and delivery.  In determining the award of a contract to a work 
center, the Chief Procurement Officer shall give work centers a 10% cost preference 
when bidding against bidders that are not work centers. 
7.  Assignment of contracts.  The director Chief Procurement Officer shall ensure 
that contracts awarded to work centers may not be assigned to any other vendor, except as 
may be necessary to complete the contracts, because of extraordinary events beyond the 
control of the work centers. Any additional costs incurred because of these assignments 
must be borne by the work center as a normal cost of doing business. 
Sec. 41.  5 MRSA §1831, as amended by PL 1989, c. 785, §3, is further amended 
to read: 
§1831.  Rules 
1.  Adoption of rules.  Every department or agency of State Government, subject to 
chapters 141 to 152, purchasing services or awarding grants or contracts which that are 
not subject to the authority of the Department of Administration Administrative and 
Financial Services, as defined in chapters 153 and 155, shall establish a procedure by 
which these services are purchased or by which grants or contracts are awarded.  This 
procedure must be adopted in accordance with the Maine Administrative Procedure Act, 
chapter 375 no later than January 1, 1991 and must be approved by the State Purchasing 
Agent Chief Procurement Officer prior to their adoption.  The State Purchasing Agent 
Chief Procurement Officer shall ensure that the rules adopted under this section meet the 
standards of public notice, administrative review, and rights to appeal as set forth in 
chapter 155, subchapter I-A 1-A.  Any department or agency of State Government that 
does not adopt rules under this section by January 1, 1991, is subject to rules adopted by 
the State Purchasing Agent Chief Procurement Officer under chapter 155, subchapter I-A 
1-A.  
2.  Limitation.  This section does not apply to purchase of supplies, services, 
materials and equipment or to public improvements, as described under chapters 153 and 
155.  This section does not apply to construction, improvement or repair of any and all 
ways, roads or bridges with appurtenances or other public improvements which by law 
are under the supervision of the Department of Transportation in accordance with section 
1741. 
3.  Application.  The procedure adopted by a department or agency in this section 
may be used by the department or agency for any qualifying purchase or award of a 
contract or grant.  Nothing in this section may be construed to require the adoption of 
new procedures for every new purchase, contract or award.  Nothing in this section may 
be construed to require the State Purchasing Agent Chief Procurement Officer or the 
Department of Administration Administrative and Financial Services to approve any 
contract, grant or award that is not presently approved by the State Purchasing Agent 
Chief Procurement Officer or the Department of Administration Administrative and 
Financial Services under chapters 153 and 155. 
Sec. 42.  7 MRSA §215, sub-§2, as amended by PL 1989, c. 700, Pt. A, §31, is 
further amended to read: 
2.  Coordination of development of quality standards.  The Bureau of Purchases 
General Services will coordinate the development of quality standards with state 
institutions and the Department of Education.  The coordinator will collaborate with the 
State Purchasing Agent Chief Procurement Officer in assisting state and school 
purchasers in formulating consistent, although not necessarily uniform, quality standards.  
In the event there are differences of opinion about the quality of foodstuffs supplied to 
institutions or schools, final authority for resolution rests with the State Purchasing Agent 
Chief Procurement Officer. 
Sec. 43.  23 MRSA §52, 2nd ¶, as repealed and replaced by PL 2005, c. 313, §2, 
is amended to read: 
The department has full power to purchase all supplies, materials and equipment that 
are incidental to, or necessary for, project-specific construction, improvement or 
maintenance of transportation infrastructure.  The purchase of supplies, materials and 
equipment for nonproject-specific purposes must be made through the State Purchasing 
Agent Chief Procurement Officer as provided by law. For the purposes of this section, 
unless the context otherwise indicates, "project-specific" means relating to a specific 
location for a limited duration, as opposed to perennial, nonlocation-specific activities.  
The department may be consulted by and shall, without charge, advise municipal officers 
and road commissioners on the subject of construction, improvement and maintenance of 
public highways, bridges and other structures. The department shall whenever practicable 
give preference in employment to the inhabitants of the town in which such highways are 
located. 
Sec. 44.  28-A MRSA §83-C, sub-§3, as enacted by PL 2013, c. 476, Pt. A, §9, is 
amended to read: 
3.  Purchase.  Oversee the wholesale purchase and storage of spirits for sale in the 
State.  If the bureau awards a contract under section 90, spirits delivered to and stored at a 
warehouse approved by the bureau are the property of the supplier.  Spirits become the 
property of the bureau upon removal from the warehouse for shipment to an agency 
liquor store.  Spirits delivered to an agency liquor store become the property of the 
licensee upon receipt of delivery.  A person awarded a contract under section 90 at no 
time takes legal title to any spirits delivered to the warehouse.  The bureau may buy and 
have in its possession spirits for sale to the public. The bureau shall buy spirits directly 
and not through the State Purchasing Agent Chief Procurement Officer. All spirits must 
be free from adulteration and misbranding; 
Sec. 45.  34-A MRSA §1403, sub-§11, as enacted by PL 1999, c. 583, §4, is 
amended to read: 
11.  Contracting agent.  The chief administrative officer is the contracting agent for 
all sales of articles from a correctional facility and for all other contracts made on behalf 
of the correctional facility except those made by the State Purchasing Agent Chief 
Procurement Officer. 
A.  All contracts must be made in the manner prescribed by the commissioner. 
B.  A contract may not be accepted by the chief administrative officer, unless the 
contractor gives satisfactory security for its performance. 
C.  An employee of the correctional facility may not be directly or indirectly 
interested in any contract. 
Sec. 46.  34-A MRSA §3004, sub-§1, as amended by PL 1991, c. 314, §28, is 
further amended to read: 
1.  Contract actions. Actions founded on any contract made with the State 
Purchasing Agent Chief Procurement Officer, or with any official of the department 
under the authority granted by the State Purchasing Agent Chief Procurement Officer, on 
behalf of a correctional or detention facility may be brought by the official making the 
contract or the official's successor in office. 
Sec. 47.  34-B MRSA §1404, sub-§1, as enacted by PL 1983, c. 459, §7, is 
amended to read: 
1.  Contract actions.  Actions founded on any contract made with the State 
Purchasing Agent Chief Procurement Officer, or with any official of the department 
under the authority granted by the State Purchasing Agent Chief Procurement Officer, on 
behalf of any of the state institutions, may be brought by the official making the contract 
or his the official's successor in office. 
Sec. 48.  35-A MRSA §1908, as enacted by PL 2013, c. 369, Pt. B, §1, is amended 
to read: 
§1908.  Exemption from Chief Procurement Officer rules 
Notwithstanding any other provision of law, agreements and contracts entered into 
pursuant to this chapter are not subject to the competitive bid requirements of the State 
Purchasing Agent Chief Procurement Officer. 
Sec. 49.  35-A MRSA §3210-C, sub-§3, as amended by PL 2013, c. 424, Pt. A, 
§20, is further amended to read: 
3.  Commission authority.  The commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
A.  Capacity resources;  
B.  Any available energy associated with capacity resources contracted under 
paragraph A: 
(1)  To the extent necessary to fulfill the policy of subsection 2, paragraph A; or 
(2)  If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or otherwise lowering the cost of 
electricity for the ratepayers in the State.  Available energy contracted pursuant to 
this subparagraph may be sold into the wholesale electricity market in 
conjunction with solicitations for standard-offer supply bids; and 
C.  Any available renewable energy credits associated with capacity resources 
contracted under paragraph A.  The price paid by the investor-owned transmission 
and distribution utility for the renewable energy credits must be lower than the price 
received for those renewable energy credits at the time they are sold by the 
investor-owned transmission and distribution utility. 
The commission may permit, but may not require, investor-owned transmission and 
distribution utilities to enter into contracts for differences that are designed and intended 
to buffer ratepayers in the State from potential negative impacts from transmission 
development.  To the greatest extent possible, the commission shall develop procedures 
for long-term contracts for investor-owned transmission and distribution utilities under 
this subsection having the same legal and financial effect as the procedures used for 
standard-offer service pursuant to section 3212 for investor-owned transmission and 
distribution utilities. 
The commission may enter into contracts for interruptible, demand response or energy 
efficiency capacity resources.  These contracts are not subject to the rules of the State 
Purchasing Agent Chief Procurement Officer.  In a competitive solicitation conducted 
pursuant to subsection 6, the commission shall allow transmission and distribution 
utilities to submit bids for interruptible or demand response capacity resources. 
Capacity resources contracted under this subsection may not exceed the amount 
necessary to ensure the reliability of the electric grid of this State, to meet the energy 
efficiency program budget allocations articulated in the triennial plan as approved by the 
commission pursuant to section 10104, subsection 4 or any annual update plan approved 
by the commission pursuant to section 10104, subsection 6 or to lower customer costs as 
determined by the commission pursuant to rules adopted under subsection 10. 
Unless the commission determines the public interest requires otherwise, a capacity 
resource may not be contracted under this subsection unless the commission determines 
that the capacity resource is recognized as a capacity resource for purposes of any 
regional or federal capacity requirements. 
The commission shall ensure that any long-term contract authorized under this subsection 
is consistent with the State's goals for greenhouse gas reduction under Title 38, section 
and the regional greenhouse gas initiative as described in the state climate action plan 
required in Title 38, section 577. 
Sec. 50.  35-A MRSA §3212, sub-§2, as amended by PL 1999, c. 577, §4 and c. 
578, §1, is further amended to read: 
2.  Selection of standard-offer service providers.  After terms and conditions for 
standard-offer service have been established under subsection 1, the commission shall 
administer a bid process to select a standard-offer service provider for that transmission 
and distribution utility's service territory.  By December 1, 1999, the commission shall 
review the bid submissions for each transmission and distribution utility and select the 
standard-offer service provider or providers for that utility's service territory. 
A.  The commission shall determine the general credit data and specific information 
from general load and usage data that transmission and distribution utilities must 
provide to potential standard-offer service bidders, including, but not limited to, 
monthly demand and energy consumption and the number of customers in each 
customer class.  The commission shall ensure that individual customer confidentiality 
is preserved in this process and that a transmission and distribution utility releases 
customer-specific data only with the customer's permission.  If the transmission and 
distribution utility incurs additional costs to develop and produce the required data, 
the commission shall permit that utility to recover those costs through transmission 
and distribution rates. 
B.  The commission shall establish the maximum duration of a standard-offer service 
contract after considering all relevant factors, including, but not limited to, market 
risks and the need for price stability and contract flexibility. 
C.  A competitive electricity provider that is an affiliate of a large investor-owned 
transmission and distribution utility may submit bids to provide standard-offer 
service for up to 20% of the electric load within the service territory of the large 
investor-owned transmission and distribution utility with which it is affiliated.  To 
prevent the unfair use of information possessed by a large investor-owned 
transmission and distribution utility, the commission shall ensure that a utility 
seeking to bid on standard-offer service has no greater access to relevant information 
than is provided to other potential bidders. 
D.  A consumer-owned transmission and distribution utility and a small investor-
owned transmission and distribution utility may submit bids to provide standard-offer 
service for that utility's service territory.  To prevent the unfair use of information 
possessed by a consumer-owned transmission and distribution utility or a small 
investor-owned transmission and distribution utility, the commission shall ensure that 
a utility seeking to bid on standard-offer service has no greater access to relevant 
information than is provided to other potential bidders. 
The commission shall adopt rules establishing a methodology for structuring the bidding 
process for standard-offer service in order to implement the provisions of this subsection.  
In adopting rules, the commission shall consider methods to ensure, to the extent 
possible, at least 3 providers of standard-offer service in each transmission and 
distribution utility service territory, as long as the method does not result in any 
significant adverse impacts on rates paid by consumers.  Rules adopted under this 
subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter II-A 
2-A. 
Notwithstanding any other provision of this Title, the commission may, in the event of a 
default by a standard-offer service provider, require the transmission and distribution 
utility in whose service territory the provider was providing standard-offer service to 
arrange and to provide for default service.  Notwithstanding any other provision of this 
Title, the commission may, in the event that the commission receives no bids to provide 
standard-offer service in a transmission and distribution utility's territory or the 
commission determines that the bids it receives are inadequate or unacceptable, require 
the transmission and distribution utility to arrange and to provide for default service.  
Notwithstanding any other provision of this Title, the commission may require a 
transmission and distribution utility to provide default service to its customers that are not 
located within either the New England independent system operator control area or the 
Maritimes control area; and default service pursuant to this sentence must be provided to 
customers at the same price and on the same terms and conditions as standard-offer 
service is provided to the customers of the transmission and distribution utility in the 
standard-offer class in which the customer is eligible to receive service.  The arrangement 
and provision of such default service by a transmission and distribution utility does not 
constitute selling electric energy or capacity at retail for purposes of section 3205, 
subsection 2. 
Notwithstanding Title 5, section 1831, the commission is not subject to rules adopted by 
the State Purchasing Agent Chief Procurement Officer in conducting the competitive 
bidding process required under this section. 
Sec. 51.  35-A MRSA §10105, sub-§4, as enacted by PL 2009, c. 372, Pt. B, §3, 
is amended to read: 
4.  Purchasing agent rules.  Notwithstanding Title 5, section 1831, the trust is not 
subject to rules adopted by the State Purchasing Agent Chief Procurement Officer in 
selecting service providers pursuant to this chapter. The trust shall consider delivery of 
programs by means of contracts with service providers that participate in competitive bid 
processes for providing services within individual market segments or for particular end 
uses. 
Sec. 52.  35-A MRSA §10110, sub-§3, as enacted by PL 2009, c. 372, Pt. B, §3, 
is amended to read: 
3.  Implementation.  The trust shall seek to implement the delivery of conservation 
programs in all regions of the State on an equitable basis and to citizens at all income 
levels.  The trust may arrange the delivery of conservation programs by contracting with 
service providers.  The trust shall select service providers in accordance with this 
subsection. 
A.  The trust shall select service providers through a competitive bidding process. 
B.  To the extent practicable, the trust shall encourage the development of resources, 
infrastructure and skills within the State by giving preference to in-state service 
providers. 
C.  Notwithstanding paragraph A: 
(1)  The trust may select a service provider for one or more conservation 
programs without employing a competitive bidding process if the trust finds that 
the selection of the service provider will promote the efficient and effective 
delivery of conservation programs and is consistent with the objectives and 
overall strategy of the conservation programs; and 
(2)  For the delivery of conservation programs to low-income residential 
consumers, the commission, without employing a competitive bidding process, 
may use the delivery system for the Weatherization Assistance for Low-income 
Persons Program administered through the United States Department of Energy 
and the network of for-profit and not-for-profit entities who have held contracts 
with transmission and distribution utilities to deliver conservation services to 
low-income and residential customers. 
In accordance with section 10105, the trust is not subject to rules adopted by the State 
Purchasing Agent Chief Procurement Officer in selecting service providers pursuant to 
this subsection.  The board shall adopt rules establishing procedures governing the 
selection of service providers under this subsection.  The board shall consult with the 
State Purchasing Agent Chief Procurement Officer in developing the rules. 
A trade association aggregator is eligible to participate in competitive bid processes under 
this subsection. 
Sec. 53.  36 MRSA §191, sub-§2, ¶JJ, as amended by PL 2009, c. 361, §12, is 
further amended to read: 
JJ.  The disclosure to the State Purchasing Agent Chief Procurement Officer of a 
person's sales tax standing as necessary to enforce Title 5, section 1825-B, subsection 
14;  
Sec. 54.  36 MRSA §4372-A, sub-§7, as amended by PL 1999, c. 616, §6, is 
further amended to read: 
7.  Hearings; disposition; deposit of funds.  At a hearing, other than a default 
proceeding, the court shall hear evidence, make findings of fact, enter conclusions of law 
and file a final order from which the parties have the right of appeal.  When cigarettes are 
ordered forfeited, the final order must provide for the disposition of the cigarettes by the 
State Tax Assessor by public auction or by the State Purchasing Agent Chief 
Procurement Officer.  Proceeds must be deposited in the General Fund.  Cigarettes 
described in section 4366-C, subsection 1 must be destroyed by the State Tax Assessor in 
a manner that prevents their reintroduction into the marketplace. 
Sec. 55.  36 MRSA §4404-C, sub-§7, as enacted by PL 2005, c. 627, §11, is 
amended to read: 
7.  Hearings; disposition; deposit of funds.  At a hearing other than a default 
proceeding, the court shall hear evidence, make findings of fact, enter conclusions of law 
and file a final order to which the parties have the right of appeal. When tobacco products 
are ordered forfeited, the final order must provide for the disposition of the tobacco 
products by the assessor by public auction or by the State Purchasing Agent Chief 
Procurement Officer. Proceeds must be deposited in the General Fund. Tobacco products 
described in section 4404-B, subsection 1 must be destroyed by the assessor in a manner 
that prevents their reintroduction into the marketplace. 
SUMMARY 
This bill changes, from State Purchasing Agent to Chief Procurement Officer, the 
title of the position responsible for administering the procurement process for the State.  
The bill also makes several changes to the laws governing the procurement process, 
including the following. 
1.  It authorizes the Chief Procurement Officer to enter into multistate agreements 
and requests for proposals and bids for goods and services. 
2.  It authorizes the Chief Procurement Officer, with the approval of the 
Commissioner of Administrative and Financial Services, to adopt rules to provide a 
process under which a department or agency that purchases goods or services contrary to 
the State's procurement laws may have funding removed from that department or 
agency's budget. 
3.  It provides that costs for an unsuccessful appeal of a contract or grant award 
decision must be borne by the person requesting the appeal.