An Act To Establish the Maine Buy American and Build Maine Act
Sec. 1. 5 MRSA c. 153, sub-c. 3 is enacted to read:
MAINE BUY AMERICAN AND BUILD MAINE ACT
§ 1777. Short title
This Act may be known and cited as "the Maine Buy American and Build Maine Act."
§ 1778. Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.
(1) Has filed a Maine tax return or paid Maine employment taxes for at least the 2 years immediately prior to bidding on a state contract;
(2) If the business does not meet the requirements of subparagraph (1), an officer, if the business is a corporation, a partner in the business or the sole proprietor must meet the requirements of paragraph A; or
(3) If the business does not meet the requirements of subparagraph (1) or (2), at least 60% of the individuals employed by the business 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.
(1) All of the manufacturing processes for the manufactured good take place in the United States; and
(2) The origin of the manufactured good's components or subcomponents meets a minimum level of domestic content, as defined in rules established by the department pursuant to section 1780-A.
§ 1779. Use of American-made materials
§ 1780. Preference for in-state contractors
§ 1780-A. Rules
The department 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, 2020.
This bill establishes the Maine Buy American and Build Maine Act and requires that all contracts for the construction, reconstruction, alteration, repair, improvement or maintenance of a public building or public work made by a state agency, board, commission or institution contain a provision that the manufactured goods, including iron, cement and steel, used or supplied in the performance of the contract or any subcontract to the contract must be manufactured 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, cement or steel product, all of the manufacturing processes take place 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.
Under the Act, 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 the United States in sufficient and reasonably available quantities and of a satisfactory quality or that inclusion of manufactured goods made 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 to implement the Act.
The bill requires that, if the department 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 the Act, 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 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.
The bill also requires that, in the award of a bid for the construction, reconstruction, alteration, repair, improvement or maintenance of a public building or public work or for services to be provided to or on behalf of the State, if 2 or more bids are submitted that are substantially similar, preference must be given to the bid submitted by an in-state contractor, which includes a business at which at least 60% of the employees are residents of Maine. If the bid submitted by an in-state contractor is higher than the lowest bid submitted by a contractor that is not an in-state contractor, the in-state contractor must be given the opportunity to match the lowest bid submitted.