The Timber Grading Act establishes a framework for the grading and labeling of structural timber produced in New Mexico. It creates a structural timber grading certificate program overseen by the forestry division of the energy, minerals, and natural resources department. This program will provide training for sawmill owners and employees, allowing them to become certified graders. The division is tasked with developing a state-specific grading system based on national standards, issuing certificates to those who complete the program, and promulgating rules related to the program's operation, including the qualifications for instructors and the processes for certificate suspension or revocation.

Under the new law, graders are required to prepare and provide labels for graded structural timber, which must include specific information such as the grader's name, sawmill location, timber species, and moisture content at the time of grading. Only timber processed at the grader's own sawmill can be graded and labeled by that grader. The act allows for the use of in-state graded timber in all residential and commercial buildings, with the label serving as proof of grading in place of a traditional grade stamp. This legislation aims to enhance the quality and reliability of locally sourced timber while supporting the state's timber industry.