Printed on recycled paper 131st MAINE LEGISLATURE FIRST SPECIAL SESSION-2023 Legislative Document No. 1983S.P. 812 In Senate, May 22, 2023 An Act to Establish the Maine Buy American and Build Maine Act Reference to the Committee on State and Local Government suggested and ordered printed. DAREK M. GRANT Secretary of the Senate Presented by President JACKSON of Aroostook. DRAFT DRAFT DRAFT Page 1 - 131LR0080(01) DRAFT DRAFT DRAFT 1 2 as repealed and replaced by PL 2001, c. 271, §1, is 3 amended to read: 4 The Department of Administrative and Financial Services through the Bureau of 5 General Services shall award a contract in accordance with this section and chapter 160 for 6 any public improvement that the State or any of its agencies hold in fee involving a total 7 cost in excess of $100,000, except contracts for professional, architectural and engineering 8 services. The bureau may reject any public improvement bid, qualification package or 9 proposal when it determines that to do so is in the best interests of the State. The contract 10 must be awarded by competitive bid as provided in subsection 2 or by the bid method 11 provided in subsections 3 to 7 for alternative methods of project delivery. 12 as amended by PL 2011, c. 691, Pt. B, §12, is 13 further amended to read: 14 The trustees, commissioners or other persons in charge of any public improvement in 15 an amount in excess of $100,000, which is subject to chapters 141 to 155 and chapter 160 16 shall, after consultation with the Director of the Bureau of General Services, advertise for 17 sealed proposals not less than 2 weeks in such papers as the Governor may direct. The last 18 advertisement must be at least one week before the time named in the advertisement for the 19 closing of such bids. Sealed proposals for any public improvements must be addressed to 20 the trustees, commissioners or such other persons having the construction in charge and 21 remain sealed until opened at the time and place stated in the advertisement or as the 22 Governor may direct. 23 as amended by PL 1991, c. 780, Pt. Y, §62, is 24 further amended to read: 25 26 by the State Government or by any department or agency thereof, subject to chapters 141 27 to 155; and chapter 160. 28 A. The Director of the Bureau of General Services may establish dates by which 29 departments and agencies of State Government must order standard forms that each 30 department or agency requires, and to determine the quantity of each standard form to 31 be printed in order to obtain savings resulting from volume purchasing; 32 as amended by PL 1991, c. 780, Pt. Y, §67, is 33 further amended to read: 34 The terms "services," "supplies," "materials" and "equipment" as used in this chapter 35 mean any and all services, articles or things that are used by or furnished to the State or any 36 department or agency thereof, and any and all printing, binding, publication of laws, 37 journals and reports. Except as provided in chapters 141 to 155 and chapter 160, any and 38 all services, supplies, materials and equipment needed by one or more departments or 39 agencies of the State Government must be directly purchased or contracted for by the 40 Director of the Bureau of General Services, as may be determined from time to time by 41 rules adopted pursuant to chapters 141 to 155 and chapter 160, which rules the Department 42 of Administrative and Financial Services is authorized and empowered to make. It is the 43 intent and purpose of this chapter that the Director of the Bureau of General Services DRAFT DRAFT DRAFT Page 2 - 131LR0080(01) DRAFT DRAFT DRAFT 44 purchase collectively all services, supplies, materials and equipment for the State or any 45 department or agency thereof in a manner that will best secure the greatest possible 46 economy consistent with the grade or quality of the services, supplies, materials and 47 equipment best adapted for the purposes for which they are needed. Whenever supplies and 48 materials are available for purchase that are composed in whole or in part of recycled 49 materials and are shown by the seller, supplier or manufacturer to be equal in quality and 50 are competitively priced, except for paper and paper products, the Director of the Bureau 51 of General Services shall purchase such recycled supplies and materials. The Director of 52 the Bureau of General Services shall also review procurement procedures and bid 53 specifications for the purchase of products and materials to ensure, to the maximum extent 54 feasible, the purchase of products or materials that are made with recycled materials or may 55 be recycled or reused once discarded. For the purposes of this section and section 1812-B, 56 "recycled materials" means materials that are composed in whole or in part of elements that 57 are reused or reclaimed. 15 is amended to read: 16 17 Except as otherwise provided in chapters 141 to 155 and chapter 160 and the rules and 18 regulations adopted hereunder pursuant to those chapters, services, supplies, materials and 19 equipment shall must be purchased by or furnished to the State Government or any 20 department or agency thereof only upon requisition to the State Purchasing Agent. The 21 State Purchasing Agent, or his the State Purchasing Agent's authorized representative, shall 22 examine each requisition submitted to him the State Purchasing Agent by any department 23 or agency of the State Government and may revise it as to quantity, quality or estimated 24 cost after consultation with the department or agency concerned. 25 is amended to read: 26 27 Whenever any department or agency of the State Government, required by chapters 28 141 to 155 and chapter 160 and rules and regulations adopted pursuant thereto, to those 29 chapters applying to the purchase of services, supplies, materials or equipment through the 30 State Purchasing Agent, shall contract contracts for the purchase of such services, supplies, 31 materials or equipment contrary to chapters 141 to 155 and chapter 160 or the rules and 32 regulations made hereunder under those chapters, such contract shall be is void and have 33 has no effect. If any such department or agency purchases any services, supplies, materials 34 or equipment contrary to chapters 141 to 155 and chapter 160 or rules and regulations made 35 hereunder under those chapters, the head of such department or agency shall be is 36 personally liable for the costs thereof, and, if such services, supplies, materials or 37 equipment are so unlawfully purchased and paid for out of state moneys money, the amount 38 thereof may be recovered in the name of the State in an appropriate action instituted 39 therefor for that recovery. 40 is enacted to read: 41 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 DRAFT DRAFT DRAFT Page 3 - 131LR0080(01) DRAFT DRAFT DRAFT 1 2 This Act may be known and cited as "the Maine Buy American and Build Maine Act." 3 4 As used in this chapter, unless the context otherwise indicates, the following terms 5 have the following meanings. 6 7 Services. 8 9 property safety goods" means any goods that are part of or for addition to a system designed 10 to prevent, respond to, alert regarding, suppress, control or extinguish an emergency or the 11 cause of an emergency, or goods used to assist evacuation in the event of an emergency, 12 that threatens life or property. "Emergency life safety and property safety goods" includes, 13 but is not limited to, goods relating to systems or items for fire alarm, fire sprinklers, fire 14 suppression, fire extinguishing, security, gas detection, intrusion detection, access control, 15 video surveillance and recording, mass notification, public address, emergency lighting, 16 patient wandering, infant tagging and nurse call. 17 "In-state contractor" means an individual residing in this State 18 or a business based in this State. "In-state contractor" includes: 19 A. If an individual, an individual who has a physical address in this State at which the 20 individual has established residency and has filed a Maine income tax return for at least 21 the 2 years immediately prior to bidding on a state contract; or 22 B. If a business, a business or a subsidiary of the business that has a physical address 23 in this State at which it conducts business, including interviewing applicants for 24 employment by the business or a subsidiary of the business and hiring and employing 25 staff, and: 26 (1) Has filed a Maine income tax return or paid Maine employment taxes for at 27 least the 2 years immediately prior to bidding on a state contract; 28 (2) If the business or a subsidiary of the business does not meet the requirements 29 of subparagraph (1), an officer, if the business is a corporation, a partner in the 30 business or the sole proprietor must meet the requirements of paragraph A; or 31 (3) If the business or a subsidiary of the business does not meet the requirements 32 of subparagraph (1) or (2), at least 60% of the individuals employed by the business 33 are residents of this State. For purposes of this subparagraph, an individual is a 34 resident of this State if the individual meets the requirements of Title 21-A, section 35 112 and has filed a Maine income tax return the previous year. 36 "Manufactured good" means: 37 A. An article, material or supply valued over $5,000 per item or per purchase order, 38 including any preassembled items, brought to a construction site for incorporation into 39 a public building or public work; and 40 B. Articles, materials or supplies acquired for public use. 41 "Manufactured in the United States" means: DRAFT DRAFT DRAFT Page 4 - 131LR0080(01) DRAFT DRAFT DRAFT 1 A. In the case of an iron, cement or steel product, all manufacturing takes place in the 2 United States, except metallurgical processes involving the refinement of steel 3 additives; and 4 B. In the case of a manufactured good other than an iron, cement or steel product: 5 (1) All of the manufacturing processes for the manufactured good take place in 6 the United States; 7 (2) The origin of the manufactured good's components meets a minimum level of 8 domestic content, as defined in rules established by the department pursuant to 9 section 1915; or 10 (3) The manufactured good is assembled in the United States. 11 "Public agency" means the State and its departments, agencies, 12 boards, commissions and institutions but does not mean a county, municipality or school 13 administrative unit. 14 "Public building or public work" means any 15 structure, building, highway, waterway, street, bridge, transit system, airport or other 16 betterment, work or improvement whether of a permanent or temporary nature and whether 17 for governmental or proprietary use. "Public building or public work" includes, but is not 18 limited to, any railway; street railway; locomotive; passenger bus; wires, poles and 19 equipment for electrification of a transit system; rails; tracks; roadbed; guideway; elevated 20 structure; school; hospital; station; terminal; dock; shelter; and repairs to any such public 21 building or public work. 22 "Public improvement" means the construction, 23 reconstruction, alteration, repair, improvement or maintenance of a public building or 24 public work made by a public agency other than the Department of Transportation or the 25 Maine Turnpike Authority. 26 27 territory or insular possession subject to the jurisdiction of the United States. 28 29 Notwithstanding any provision of law to the 30 contrary, a contract for a public improvement must contain a provision that the 31 manufactured goods, including iron, cement and steel, used or supplied in the performance 32 of the contract or any subcontract to the contract must be manufactured in the United States. 33 Notwithstanding any provision of law to the contrary, manufactured 34 goods purchased by a public agency must be manufactured in the United States. 35 A public agency may apply to the Governor or the Governor's designee 36 for a waiver of the requirements of subsection 1 or 2 in any case or category of cases in 37 which the executive head of a public agency finds: 38 A. That the application of the requirements of subsection 1 or 2 would be inconsistent 39 with the public interest; 40 B. That the necessary manufactured goods are not produced in the United States in 41 sufficient and reasonably available quantities and of a satisfactory quality; DRAFT DRAFT DRAFT Page 5 - 131LR0080(01) DRAFT DRAFT DRAFT 1 C. That inclusion of manufactured goods manufactured in the United States will 2 increase the cost of the overall public improvement or procurement contract by an 3 unreasonable amount, as defined in rules established by the department pursuant to 4 section 1915; or 5 D. The total cost of the contract for a public improvement or purchase of manufactured 6 goods by a public agency is below a minimum project cost as established by rules of 7 the department pursuant to section 1915. 8 The department shall implement procedures to allow 9 a reasonable amount of time for public review and comment on a requested waiver under 10 subsection 3 before making a finding based on the request and shall publish on the 11 department's publicly accessible website or, in the case of a public improvement, in a 12 newspaper of general circulation in the area of the proposed work a detailed justification 13 for any waiver granted. 14 The department shall, after a hearing, debar an individual, 15 business or other entity from participation in contracts or subcontracts with the State for 2 16 years if the department has reason to believe that individual, business or other entity has 17 intentionally: 18 A. Affixed a label bearing a "Made in America" inscription, or any inscription with 19 the same meaning, to any manufactured good, including iron, cement and steel, used 20 in a project to which this section applies when that manufactured good was not 21 manufactured in the United States; 22 B. Represented that any manufactured good, including iron, cement and steel, used in 23 a project to which this section applies was manufactured in the United States when that 24 manufactured good was not manufactured in the United States; or 25 C. Violated any provision of this chapter. 26 27 the extent they violate or are inconsistent with international agreements pertaining to 28 government procurement. 29 The provisions 30 of this chapter do not apply to emergency life safety and property safety goods. 31 The requirements of this section do not apply to the extent 32 they violate or are inconsistent with federal funding requirements. 33 34 Notwithstanding any provision of law to the contrary, the department shall follow the 35 requirements of this section. 36 In addition to the requirements of 37 Title 26, chapter 15, public agencies, in awarding a contract for a public improvement, 38 services provided to or on behalf of the State or the purchase of manufactured goods, shall 39 award the contract to an in-state contractor if that in-state contractor's bid is substantially 40 similar to other submitted bids. 41 42 submits a bid for a public improvement that is substantially similar to but substantially DRAFT DRAFT DRAFT Page 6 - 131LR0080(01) DRAFT DRAFT DRAFT 43 higher than other submitted bids, the public agency shall give the bid from the in-state 44 contractor a preference of 10% applied in a manner determined by the department in rules 45 adopted pursuant to section 1915. If more than one in-state contractor submits a bid that is 46 substantially similar to but substantially higher than other submitted bids, the public agency 47 shall give each in-state contractor a preference of 10% applied in a manner determined by 48 the department in rules adopted pursuant to section 1915. 7 8 for a procurement that is substantially similar to but substantially higher than other 9 submitted bids, the public agency shall give the bid from the in-state contractor a preference 10 of 10% applied in a manner determined by the department in rules adopted pursuant to 11 section 1915. If more than one in-state contractor submits a bid that is substantially similar 12 to but substantially higher than other submitted bids, the public agency shall give each in- 13 state contractor a preference of 10% applied in a manner determined by the department in 14 rules adopted pursuant to section 1915. 15 If the public agency determines, by a preponderance of evidence, that 16 a bid submitted by an in-state contractor is frivolous or that the in-state contractor is 17 incapable of satisfactorily completing the contract, the department may refuse to award the 18 contract to that in-state contractor. 19 An in-state contractor that is not awarded a 20 contract pursuant to subsection 1, 2 or 3 may request, within 30 days of the award of the 21 contract, the Attorney General to investigate the bidding process and award to determine 22 whether the procedure in subsection 1, 2 or 3 was adhered to by the public agency or, if the 23 contract was not awarded pursuant to subsection 4, whether the public agency's 24 determination was valid. If the Attorney General determines that the public agency has not 25 followed the procedure specified in subsection 1, 2 or 3, the Attorney General may act as 26 a mediator in a dispute between the in-state contractor and the public agency. 27 The requirements of this section do not apply to the extent 28 they violate or are inconsistent with federal funding requirements. 29 30 The department shall adopt rules necessary to implement this chapter. Rules adopted 31 pursuant to this section are routine technical rules as defined in chapter 375, subchapter 32 2-A. 33 34 Administrative and Financial Services administer the provisions of the Maine Buy 35 American and Build Maine Act within existing resources. 36This Act takes effect September 1, 2024. 37 38 This bill establishes the Maine Buy American and Build Maine Act and requires that 39 all contracts for the construction, reconstruction, alteration, repair, improvement or 40 maintenance of a public building or public work made by a state agency, board, commission 41 or institution, except for the Department of Transportation and the Maine Turnpike 42 Authority, contain a provision that any manufactured good valued over $5,000, including 43 iron, cement and steel, and any article, material or supply acquired for public use used or 1 2 3 4 5 6 38 39 40 41 42 43 DRAFT DRAFT DRAFT Page 7 - 131LR0080(01) DRAFT DRAFT DRAFT 44 supplied in the performance of the contract or any subcontract to the contract must be 45 manufactured in the United States. This requirement does not apply to counties, 46 municipalities or school administrative units. 4 The bill requires, in the case of a manufactured good valued over $5,000, other than an 5 iron, cement or steel product, all of the manufacturing processes to take place in the United 6 States, the origin of the manufactured good's components to meet a minimum level of 7 domestic content as established by rule or the manufactured good to be assembled in the 8 United States. 9 Under the Act, a public agency may apply to the Governor or the Governor's designee 10 for a waiver of the requirement if the executive head of the public agency finds that the 11 application of the requirement would be inconsistent with the public interest, that the 12 necessary manufactured goods are not produced in the United States in sufficient and 13 reasonably available quantities and of a satisfactory quality, that inclusion of manufactured 14 goods made in the United States will increase the cost of the overall project contract by an 15 unreasonable amount or that the total cost of the contract is below a minimum project cost 16 established by rule. The Department of Administrative and Financial Services is directed 17 to adopt rules to implement the Act. 18 The bill requires that, if the department has reason to believe that any individual, 19 business or other entity has intentionally made fraudulent representations about the 20 domestic content of a manufactured good or has intentionally violated any provision of the 21 Act, the department must, after a hearing, debar that individual, business or other entity 22 from contracts or subcontracts with the State for 2 years. 23 The bill provides that the provisions of this legislation must be applied in a manner 24 consistent with the State's obligations under any applicable international agreements 25 pertaining to government procurement and do not apply to emergency life safety and 26 property safety goods. 27 The bill also requires that, in the award of a contract for the construction, 28 reconstruction, alteration, repair, improvement or maintenance of a public building or 29 public work, for services to be provided to or on behalf of the State or for the purchase of 30 manufactured goods, if 2 or more bids are submitted that are substantially similar, the 31 public agency shall give the bid from an in-state contractor a preference of 10% applied in 32 a manner determined by the department in rules. 33 An in-state contractor may request that the Attorney General investigate the bidding 34 and award process and act as a mediator between the in-state contractor and the public 35 agency. 36 The department is required to administer the Maine Buy American and Build Maine 37 Act within existing resources. 1 2 3