An Act To Encourage the Purchase of Products Made in Maine and in the United States and To Give Preference to Maine Businesses When Awarding Contracts
Sec. 1. 5 MRSA c. 153, sub-c. 3 is enacted to read:
MATERIALS, SUPPLIERS AND VENDORS
§ 1777. Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.
(1) All of the manufacturing processes for the manufactured good take place in Maine or another state in the United States; and
(2) The origin of a manufactured good's components or subcomponents meets a minimum level of domestic content, as defined in rules established by the Department of Administrative and Financial Services pursuant to section 1780.
§ 1778. Use of materials manufactured in Maine or in the United States
§ 1779. Preference for businesses located in the State
Notwithstanding any provision of law to the contrary, the Director of the Bureau of General Services shall apply a preference percentage of 5% for a business submitting a bid for a contract under this subchapter whose principal place of business is located in the State and that pays a majority of its payroll to residents of the State as long as:
§ 1780. Rules
The Department of Administrative and Financial Services shall adopt routine technical rules as described in chapter 375, subchapter 2-A to implement this subchapter.
Sec. 2. Effective date. This Act takes effect September 1, 2016.
This bill requires that all contracts for the construction, reconstruction, alteration, repair, improvement or maintenance of a public building or public work made by a state department, agency, board, commission or institution contain a provision that the manufactured goods, including iron and steel, used or supplied in the performance of the contract or any subcontract under the contract must be manufactured in Maine or in the United States. This requirement does not apply to counties, municipalities or school administrative units.
The bill requires that, in the case of a manufactured good other than an iron or steel product, all of the manufacturing processes take place in Maine or in the United States and the origin of the manufactured good's components or subcomponents meet a minimum level of domestic content as established by rule.
The bill provides that a public agency may apply to the Governor or the Governor's designee for a waiver of the requirement if the executive head of the public agency finds that the application of the requirement would be inconsistent with the public interest, that the necessary manufactured goods are not produced in Maine or in the United States in sufficient and reasonably available quantities and of a satisfactory quality or that inclusion of manufactured goods made in Maine or in the United States will increase the cost of the overall project contract by an unreasonable amount. The Department of Administrative and Financial Services is directed to develop rules regarding this legislation, including rules to guide the waiver process and the process for public review and comment regarding requests for a waiver.
The bill requires that if the Department of Administrative and Financial Services has reason to believe that any person, business or other entity has intentionally made fraudulent representations about the domestic content of a manufactured good or has intentionally violated any provision of this legislation, the department must, after a hearing, debar that person, business or other entity from contracts or subcontracts with the State for 2 years.
The bill gives preference in the awarding of contracts to businesses located in the State.
The bill provides that the provisions of this legislation must be applied in a manner consistent with the State's obligations under any applicable international agreements pertaining to government procurement.