An Act to Establish the Maine Buy American and Build Maine Act
Maine Legislature, Session 131, LD 1983
Committee Amendment CA_A_S677 (Senate)
Amends: 5 MRSA §1815, 5 MRSA §1819, 26 MRSA §1301

COMMITTEE AMENDMENT" ft "to S.P. 812,L.D. 1983, "An Act to Establish the
Maine Buy American and Build Maine Act"
Amend the bill by striking out all of sections 5, 6 and 7 and inserting the following:
'See. 5. 5 MRSA §1815, as amended by PL 2023, c, 516, Pt, B, §11, is further
amended to read:
§1815. Requisitions required
Except as otherwise provided in chapters 141 to 154, chapter 160 and this chapter and
the rules and regulations adopted under those chapters and this chapter, services, supplies,
materials and equipment may be purchased by or furnished to the State or any department
or agency thereof only upon requisition to the Chief Procurement Officer. The Chief
Procurement Officer, or the officer's authorized representative, shall examine each
requisition submitted to the officer by any department or agency of the State and may revise
it as to quantity, quality or estimated cost after consultation with the department or agency
concerned.
Sec. 6. 5 MRSA §1819, as amended by PL 2023, c. 516, Pt, B, §15, is further
amended to read:
§1819. Unlawful purchases
Whenever any department or agency of the State, pursuant to chapters 141 to 154,
chapter 160 and this chapter and rules and regulations adopted under those chapters and
this chapter applying to the purchase of services, supplies, materials or equipment through
the Chief Procurement Officer, contracts for the purchase of such services, supplies,
materials or equipment contrary to chapters 141 to 154. chapter 160 and this chapter or the
rules and regulations adopted under those chapters and this chapter, that contract is void
and has no effect, If any such department or agency purchases any services, supplies,
materials or equipment contrary to chapters 141 to 154. chapter 160 and this chapter or
rules and regulations adopted under those chapters and this chapter, the head of that
5 department or agency is personally liable for the costs thereof, and if the services, supplies,
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materials or equipment are so unlawfully purchased and paid for out of state money, the
amount thereof may be recovered in the name of the State in an appropriate action instituted
therefor.
Sec. 7. 5 MRSA c. 160 is enacted to read:
CHAPTER 160
MAWE BUY AMERICAN AND BUILD MAINE ACT
§1911. Short title
This chapter may be known and_cited_ as "the Maine BUY American and Build Maine
Act,"
§1912. Definitions
As used in this chapter, unless the context otherwise indicates, the Jbllowing terms
have the following meaning^
1. Department. "Department" means the Department of Administrative and Financial
Services.
2. Emereency 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. eoods relating to systems or items for fire alarm, fire sprinklers, fire
suppression, fire extinguishing, security, gas detection, intrusion detection, access control,
video surveillance and recording, mass notification, public address, emergency lighting,
natient wandering and infant tagging
3. Employer. "Employer" means a person, firm or corporation that employs one or
more__employees on a public improvement, including contractors and subcontractors, and
that is required or eligible to make contributions or other payments into the Unemployment
Compensation Fund under Title 26, section 1141,
4. Hiring hall. "Hiring hall" means a service provided by a labor organization or an
entity associated with a labor organization that places employees with an employer under
a collective bargaining agreement or otherwise places employees with employers. For
purposes of this subsection, "labor organization" has the same meaning as in Title 35-A,
section 3210-H. subsection 1, paragraph B,
S.JEn-state contractor. "In-state contractor" means an individual residing in this State
or a business based in this State. "In-state contractor" includes:
A. An individual who has a physical address in this State at which the individual has
established residency and has filed a Maine incomejax return for at least the_2 veai's
immediately prior to bidding on a state contract;
8 B, A business or a subsidiary of the business that has a physical address in this State
at which it conducts business, including, but not limited to. interviewing applicants for
employment and hiring and employing staff at the prevailing wage rate for the
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ft"'
fe(^)
occupational classification iaJhe area of employment in accordance with Title 26.
section 1308; and
C. A business that uses the services of contractors or subcontractors that use a hiring
hall within the local labor market in order to meet their local workforce needs and:
fl) Has filed a Maine income tax return or paid employment taxes in the State for
aUeast the 2 years immediately prior to bidding on a state contract;
f2') If the business or a subsidiary of the business does not meet the requirements
of subparaeraph d'), an officer of the business, if the business is a corporation, a
partner in the business or the sole Droprietor of the business meets the requirements
of paragraph A; or
f3) If the business or a subsidiary of the business does not meet the requirements
ofsubparagraph d) or f2), at least 65% of the individuals employed by the business
or subsidiary are residents of this State. For purposes of this subparagraph, an
individual is a resident of this State if the individual meets the requirements of Title
21-A, section 112 and has filed a ]VTaine income tax return thejsrevious year,
6. Local labor market. "Local labor market" means labor market areas in this State
as defined by the Department of Labor and any labor market outside of this State if any
portion of that labor market is within 75 miles of the border of this State or has a hiring hall
within the local labor market.
7. Manufactured good. "Manufactured sopd" meansi
A. An article, material or suoaly. valued over $5.000 per item or per sinele purchase
order, includine any preassembled items, brought to a construction site for
incorporation into a public building or public work; and
B. Articles, materials or supplies acquired by a public agency and valued over $5.000
per item or per single purchase order.
"Manufactured good" does not include aggregates, such as cement and cementjtjous
materials or aggregates such as stone, sand. gravel or aggregate binding agents or additives.
8. Manufactured in the United States. "Manufactured in the United States" means:
A. In the case of an iron or steel product, all manufacturing takes place in the United
States from the initial melting stage through the application of coatings; and
B. In the case of a manufactured good other than an iron or steel product:
(1) The manufactured eood was manufactured in the United States;
(2) The cost of the components of the manufactured good that are mined, produced
or manufactured in the United States is greater than 65% of the total cost of all
5 components of the manufactured good, unless another standard for determining the
minimum amount of domestic content of the manufactured good has been
established under state law or department rule; or
(3) In the case of construction materials, all manufacturing processes for the
construction material occurred in the United States.
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9. Public agency. "Public agency" means the State and its departments, agencies.
boards, commissions and institutions. county and municipal governmental units and school
administrative units.
10. 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 apermanent or temporary nature and whether
for eovemmental or proprietary use. "PublicJbuUdiiig or public work" includes, but is not
limited to, any railway; street railway; locomotive; uassengei^bus; wires, j3oles and
equipment for electrification of a transit system; rails; tracks; roadbed; guidewav; elevated
structure; school; hospital; station; terminal; dock; shelter; _and repairs to any such public
building or public work. "Public building or public work" includes water systems, including
drinking water and wastewater systems; electric transmission Jacilities_ and_systems;
utilities; and broadband infrastructure.
11. Public improvement. "Public improvement" means the constructLon,
reconstruction, alteration, repair, improvement or maintenance of a public building or
miblic work made by a public agency.
12. United States. "United States" means the United States of America and any
territory or insular possession subject to the jurisdiction of the United States.
§1913. Use of materials manufactured in the United States
1. IVIandatory contract provision. Notwithstanding any provisionof lawto _the
contrary, a contract for a public improvement must contain a provision that the
manufactured goods, includine but not limited to iron and steel, used or supplied in the
performance of the contract or any subcontract to the contract must be manufactired in the
United States,
2. Procurement. Notwithstanding any provision of law to the contrary, manufachired
goods purchased bY a public agency must be manufactured in the United States.
3. Exceptions. A public agency may apply to the Governor or the Governor's desienee
for a waiver of the requirements of subsection 1 or 2 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 or 2 would be inconsistent
with the public interest;
B. That the types of iron, steel, manufactured goods or construction materials are not
produced in the United States m sufficient and reasonably available Quantities and of a
satisfactory quality; or
C. That inclusion of iron. steel, manufactured goods or construction materials
produced in the United States will increase the cost of the overall public improvement
7 or m'ocurement contract by more than 25%.
4. Public review and comment. AjMiblic agency shall implement procedures to allow
a reasonable amount of time for public review and comment on a requested waiverjmder
subsection 3 before making a fmdine based on the request and shall publish on thejgublic
agency's publicly accessible website or, in the case of a public improvement,_m_a
newspaper of general circulation in the area of the proposed work a detailed justification
for any waiver granted.
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5. Intentional violations. The department shall, after a hearing. debar an individual.
business or other entity from participation in contracts or subcontracts with the Statejor_2
years if the department has reason to believe that individual. business or other entity has
intentionally:
A. Affixed a label bearing a "Made in America" inscription, or any inscription with
the same meaning, to any manufactured good. including but not limited to iron and
steel, used in a project to which this section applies when that manufactured good was
notmanufactured in the United States;
B. Represented that any manufactured good, including but not limitedMn'onand steel.
used in a project to which this section applies was manufactured in the United States
when that manufactured good was not manufactured in the United States; or
C. Violated any provision of this chapter.
6. International trade oblisations. The requirements of this section do noiapply to
the extent they violate or are inconsistent with_ international agreements pertaining to
government procurement.
7. Exception for emereency life safety and property safety goods. The Drovisions
of this chapter do not apply to emereency life safety and property safety eoods.
8._Federal compliance. The requirements of this section do not apply to the extent
they violate pr are inconsistent with federal funding regyirements.
§1914. Preference for in-state contractors and use of local labor markets
Notwithstanding any provision of law to the contrary, a gublic agency shall follow the
requirements of this section,
1. Substantialh' similar bid^awaj^ of conti-ac In addition to the requirements of
Title 26, chapter 15. public agencies, in awardmg a contract for a public improvement.
services provided to or on behalf of the State or the procurement of manufactured goods,
shall award the contract _toan Jn-state contractor if that in-state contractor's bid is
substantially similar to other submitted bids, In consideration of substantially similar bids
for public imorovements or procurement of manufactured eoods, public agencies shall
award the contract to an in-state_cpntractor that has a registered apprenticeshio proeram
under Title 26. chapter 37.
2. Public improvements. Public agencies, in awarding a contract for a public
improvement project, shall require that at least 75% of emoloyees hired by the contractor
or a subcontractor of a public improvement be domiciled in a local labor market.
3. Exception. If the public agency determines, by a preponderance of evidence, that
a bid submitted by an in-state contractor is frivolous or that the in-state contractor is
6 incapable of satisfactorily completing the contract, the department may refuse to award the
contract to that in-state contractor.
4. Grievance; investigation; mediation. An in-state contractor that is not awarded a
contract pursuant to subsection 1 or 2 may request. within 30 days of the award of the
contract, the Attorney General to investigate the bidding process and award to determine
whether the procedure in subsection 1 or 2 was adhered to by the public agency awarding
the contract or, if the contract was not awarded pursuant to subsection 3. whether the public
agency's determination was valid. If the Attorney General determines that the public
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agency has not followed the procedure specified in subsection 1 or 2, the Attorney General
may act as a mediator in a dispute between the in-state contractor and the public agency.
5. Federal compliance. The requirements of this section do not apply to the extent
they violate or are inconsistent with federal funding requirements.
§1915. Rules
The department may adopt rules necessary to implement this chapter. Rules adopted
pursuant to this section are major substantive rules as defined in chapter 375, subchapter
2-A.
§1916. Exception
The provisions of this chapter do not apply to public improvement projects for which
financing bonds have been approved before September 1. 2025,
Sec. 8. 26 MRSA §1301, first ^ is amended to read:
fbe Except as otherwise provided in Title 5, chapter 160, the State, counties, cities and
towns, and every charitable or educational institution which that is supported in whole or
in part by aid granted by the State or by any municipality shall, in the awarding of contracts
for constructing, altering, repairing, furnishing or equipping its buildings or public works,
give preference to workmen workers and to bidders for such contracts who are residents of
this State, provided as long as the bids submitted by such resident bidders are equally
favorable with bids submitted by contractors from without the State. This section shaU does
not apply to construction or repairs amounting to less than $ 1,000 or to emergency work or
to state road work.'
Amend the bill by striking out all of section 9 and inserting the following:
'See. 9. Effective date. This Act takes effect September 1,2025.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the majority report of the committee, makes the following
changes to the Maine Buy American and Build Maine Act proposed in the bill.
1. It adds definitions of "employer," "hiring hall" and "local labor market."
2. It amends several other definitions in the Act.
3. It removes references to cement from several provisions in the Act.
4. It adds an exception to certain requirements of the Act when the requirements would
increase the cost of the overall project by more than 25%.
5. It requires public agencies, and not just the Department of Administrative and
Financial Services, to engage in a public comment period when requesting a waiver to the
requirement that certain manufactured goods be manufactured in the United States.
6. It adds a preference for public improvements or procurement bids from in-state
contractors with registered apprenticeship programs under the Maine Apprenticesliip
Program.
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7. It adds a requirement that at least 75% of the employees hired by a contractor
awarded a bid for a public improvement project be domiciled in a local labor market.
8, It removes the provision setting out a preference for in-state contractors bidding on
procurement contracts.
9, It clarifies that construction materials are a manufactured good.
10. It changes the provision for rulemaking by the Department of Administrative and
Financial Services from mandatory to optional and categorizes the rules as major
substantive.
11. It adds an exception to the Act for public improvement projects for which financing
bonds have been approved before the effective date of the Act.
12. It changes the effective date of the legislation to September 1,2025.
The amendment also makes technical changes to the bill to update language to reflect
laws passed during the Second Regular Session of the 131st Legislature.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 04/05/24 ^^SC-L
LD 1983 LR 80(02)
An Act to Establish the Maine Buy American and Build Maine Act
Fiscal Note for Bill as Amended by Committee Amendment "^['y
Committee: State and Local Government
Fiscal Note Required: Yes
Fiscal Note
Net Cost (Savings)
Highway Fund.
Appropriations/AHocations
Highway Fund
Potential State Mandate - Unfunded
Potential current biennium cost increase - All Funds
FY 2023-24 FY 2024-25
$0
$0
$0
Projections Projections
FY 2025-26 FY 2026-27
$12,197,984 $12,203,124
$•12,197,984 $12,203,1'
State Mandates
i ;, , Required Activity
Requires local units of government to include a provision in procurement bids and
subsequent contracts for public improvements that manufactured goods used or
supplied.in the.performance of the contract or any subcontract to the contract must
be'manufactured in the United States unless a waiver is received or certain
exceptions are met.
Unit Affected
Counties
Municipalities
Schools
Local Cost
Significant
statewide
The required local activities in this bill may represent a state mandate pursuant to the Constitution of Maine. If the bill
does require a local unit of government to expand or modify its activities so as to necessitate additional expenditures
from local revenue, the state mandate provisions of the Constitution of Maine require either: (1) General Fund
appropriations be provided to fund at least 90% of any additional necessitated local costs of the mandate; or (2) a
Mandate Preamble be added to the bill and two-thirds of the members of each House vote to exempt the mandate from
the funding requirement. If the bill does represent a state mandate and neither one of these actions occurs, the local
units of government will not be required to implement the mandated activities.
Fiscal Detail and Notes
The Department of Administrative and Financial Services (DAFS) has indicated it will require additional positions to
review all contracts and to implement and enforce a waiver process. The annual costs for 2 Procurement Analyst I
.positions and 2 Planning and Research Associate I positions would be approximately $380,000 starting in fiscal year
2024-25. As the bill requires DAFS administer the provisions of the bill within existing resources, no funding for
positions is included. What this may mean to DAFS cannot be determined at this time.
LR0080(02) - Fiscal Note - Page 1 of 2
The Department of Transportation (DOT) anticipates increased project construction costs a§a result of decreased
competition from out-of-state contractors and in-state contractors who choose not to bid because of the additional
requirements and administrative costs associated with compliance with the requirements. The DOT will require a
Highway Fund allocation of $11,750,000 for All Other and Capital Expenditures funding beginning in fiscal year
2025-26 to cover these increased costs and another $447,984 for 2 EEO Program Analyst positions and 2 Procurement |
Analyst/Technician positions to implement, administer and ensure compliance with the Maine Buy American and |
Build Maine Act. It is noted that the original bill, which excluded DOT from its provisions, required DAFS to
administer the bill within its existing resources. The committee amendment removed the exclusion of DOT from the
bill but did not add DOT to the language requiring administration within existing resources. If the intent is that both
DAFS and DOT implement the bill within existing resources, it is most likely to require a reduction or postponement
of projects anticipated to be undertaken in order to remain within budgeted resources.
Requiring all procurement bids and subsequent contracts to contain a provision that the manufactured goods be
manufactured in the United States could increase costs to all state and other public agencies, including higher
educational institutions, county and municipal units of government and local school administrative units, if contracted |
goods currently manufactured by non-United States sources are less expensive than those manufactured in the United I
States and a waiver is not granted. The provision of the bill that provides for the Office of the Attorney General, upon
request within a 30 day period of contract award, to investigate and mediate grievances ofin-state contractors may
increase costs to the Office.
LR0080(02) - Fiscal Note - Page 2 of 2