Be socially responsible citizens in the countries and communities in which they operate.

The State of Maine believes in doing business with vendors who, upon continued discovery of continuing abusive conditions at a particular work site of their own or a supplier, will use their influence to correct conditions, rather than cease to do business with the site."

2.__Business practices; requirements.__A company contracted by the State to supply goods and services shall adopt and adhere to business practices in accordance with this subsection.__A company shall:

A.__Embrace high standards of ethical business behavior and demonstrate commitment to those standards through rigorous practice.__Those high standards include, at a minimum, trustworthiness, integrity, honesty, respect for human dignity and respect for human life.

B.__Comply with all laws, rules and regulations in the locations where the vendor operates and conducts business and may not knowingly operate in violation of any such law or regulation.

C.__Maintain its facilities in compliance with all applicable environmental protection laws and treaties.__In the absence of applicable laws, the vendor shall always act in a manner that is consistent with the preservation and protection of the environment.

3.__Employment practices; requirements.__A company contracted by the State to supply goods and services shall adopt and adhere to employment practices in accordance with this subsection.__A company:

A.__Shall allow for sufficient discretionary time away from the workplace and respect the need for rest, family and personal time.__Mandatory working hours must be in compliance with the local laws, including appropriately compensated overtime;

B.__Shall ensure that wages paid for a standard working week meet at least legal or industry standards, whichever is higher, are subject to no illegal deductions and are always sufficient to meet the basic needs of personnel;

C.__May not knowingly use suppliers who employ workers under the legal employment age as designated by local laws or as designated by United Nations standards, whichever is higher.__ If workers are found to be underage, vendors shall provide means for remediation and education;

D.__May not knowingly use suppliers of either raw materials or finished products that have been produced by labor that is forced, bonded, indentured or involuntary prison labor;

E.__Shall recognize and respect the legal rights of employees to free association and recognize and associate with the representative of the company's employees' choice and may not subject its employees to harassment, intimidation or retaliation in their efforts to freely associate.__Where the right to freedom of association and collective bargaining is restricted under law, a company subject to this subsection shall facilitate and may not hinder the development of parallel means for independent and free association and bargaining;

F.__Shall provide equal opportunity in employment, must be committed to responsible business practices with absolute regard for human rights and shall promote an atmosphere free from discrimination;

G.__May not discriminate against women, particularly with regard to pregnancy, maternity leave, age or marital status;

H.__Must have demonstrated concern for and commitment to the health and safety of its employees; and

I.__Shall ensure that all personnel are provided appropriate training and guidelines that will enable employees to apply the code of conduct established in subsection 1 in their work.__Workers who are covered by the code of conduct must be made aware of the code and the implementation procedures.

§1825-M.__Exception

The State Purchasing Agent 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, 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.__This section is repealed January 31, 2004.

§1825-N.__Support to suppliers of goods and services

The State Purchasing Agent shall provide to bidders and those who have been awarded contracts 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.

§1825-O.__Rulemaking

The State Purchasing Agent 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.

Rules adopted under this section are major substantive rules as defined in chapter 375, subchapter II-A.

§1825-P.__Report

By January 15th of each year, the State Purchasing Agent shall submit a report to the joint standing committee 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. 2. Resolve 1999, c. 135, §4-A is enacted to read:

*Sec. 4-A.__Assess implementation.__Resolved:__That the commission shall have at least 2 meetings in September and October 2002 to assess the progress of implementation of the commission's recommendations regarding economically and socially just purchasing policies by the State; and be it further

Sec. 3. Commission to Study Economically and Socially Just Policies for Foreign Investments by the State; established. The Commission to Study Economically and Socially Just Policies for Foreign Investments by the State is established and referred to in this section as the "commission."

1. Commission membership; appointments. The commission consists of 10 members:

A. Two members from the Senate, the first appointed by the President of the Senate, and the 2nd appointed by the President Pro Tempore;

B. Two members from the House of Representatives appointed by the Speaker of the House of Representatives, one of whom is a member of a political party that does not hold a majority of seats in that body;

C. Two members from groups involved in social investments, one appointed by the President of the Senate and one appointed by the Speaker of the House;

D. Two members from groups involved in human rights issues, one appointed by the President of the Senate and one appointed by the Speaker of the House;

E. One representative of the Maine State Retirement System, appointed by the Governor; and

F. One member of the public appointed by the Governor.

All appointments must be completed no later than October 1, 2001.

2. First meeting; chairs. The first named Senate member is the Senate chair and the first named House member is the House chair of the commission. When the appointment of all members of the commission is completed, the commission chairs shall call and convene the first meeting of the commission no later than October 31, 2001.

3. Duties. The commission shall study the subject of economically and socially just policies for foreign investment by the State. The commission shall evaluate the foreign investment policies of other states. In its report under subsection 6, the commission shall propose standards for investment in foreign companies by the State, taking into consideration such factors as the use of child labor and the existence of exploitation of workers and unhealthy working conditions. The commission shall make recommendations with regard to whether the State should invest in foreign companies that oppress or mistreat their workers. The commission shall identify the possible positive and negative impacts of proposed standards on Maine workers, Maine small businesses and Maine taxpayers.

4. Staff assistance. Upon approval of the Legislative Council, the Legislative Council staff shall provide necessary staffing services to the commission.

5. Compensation. The members of the commission who are Legislators are entitled to the legislative per diem, as defined in the Maine Revised Statutes, Title 3, section 2 and reimbursement for necessary expenses incurred for their attendance at authorized meetings of the commission. Other members of the commission who are not otherwise compensated by their employers or other entities that they represent are entitled to receive reimbursement of necessary expenses incurred for their attendance at authorized meetings of the commission.

6. Report. The commission shall submit its report, together with any necessary implementing legislation, to the Second Regular Session of the 120th Legislature no later than December 1, 2001. If the commission requires a limited extension of time to conclude its work, it may apply to the Legislative Council, which may grant the extension.

7. Consultant. The commission, with the approval of the Legislative Council, may contract with a consultant to provide professional services to assist the commission with its duties.

8. Budget. The chair of the commission, with assistance from the commission staff, shall administer the commission's budget. Within 10 days after its first meeting, the commission shall present a work plan and proposed budget to the Legislative Council for approval. The commission may not incur expenses that would result in the commission exceeding its approved budget. Upon request from the commission, the Executive Director of the Legislative Council shall promptly provide the commission chair and staff with a status report on the commission's budget, expenditures incurred and paid and available funds.

Sec. 4. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.

2001-02

LEGISLATURE

Commission to Study Economically and

Socially Just Policies for Foreign

Investments by the State

Personal Services $1,505

All Other 4,500

Provides funds for the per diem and expenses of legislative members and expenses for other eligible members of the Commission to Study Economically and Socially Just Policies for Foreign Investments by the State and the services of a consultant and to print the required report.

LEGISLATURE ______

TOTAL $6,105

SUMMARY

This bill implements the recommendations of the Commission to Study Economically and Socially Just Policies for Foreign Investments and Foreign Purchasing by the State. This bill amends the commission's implementing legislation to require the commission to meet in September and October 2002 to assess the implementation of its recommendations.

This bill requires suppliers of goods and services to the State to comply with a purchasing code of conduct in order to be considered in the competitive bidding process. The bill requires the State Purchasing Agent to provide resources to bidders to assist them with compliance with the code of conduct. The State Purchasing Agent is required to adopt rules governing the award of bids and to report annually to the joint standing committee having jurisdiction over state and local government matters.

This bill also creates a new commission to study and establish economically and socially just policies for foreign investment by the State.