Sec. 1. 26 MRSA §1301, as amended by PL 1995, c. 524, §2, is repealed and the following enacted in its place:

§1301.__Local residents preferred

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"In-state bidder" means a bidder:

(1)__Whose principal place of business or a branch of the bidder's principal place of business is located in this State; and

(2)__With at least 75% of its employees performing the conditions of a contract being state residents.

2.__Preference; exceptions.__The State, a county, city or town, and every charitable or educational institution that is supported in whole or in part by aid granted by the State or by any municipality shall, in the awarding of a contract for constructing, altering, repairing, furnishing or equipping its buildings or public works, give preference to an in-state bidder, provided the bid submitted by the in-state bidder is no more than 10% over a bid submitted by a bidder from outside the State.__ This section does not apply to construction or repairs amounting to less than $1,000 or to emergency work or state road work.__The preference in this section applies to contracts involving funds obtained from the Federal Government unless expressly prohibited by the laws of the United States or regulations adopted pursuant to those laws.

3.__Contract for public improvement.__Any contract for public improvement that is awarded by the State or any department or agency of the State is subject to the competitive bidding process established under Title 5, chapter 155, subchapter I-A.

SUMMARY

This bill gives preference in the award of construction and public works contracts by the State and its political subdivisions to in-state bidders, provided their bids are no more than 10% over bids submitted by out-of-state bidders. The bill defines "in-state bidder" as a bidder whose principal place of business or a branch of the bidder's principal place of business is located in this State and with at least 75% of its employees performing the conditions of a contract being state residents.