The Timber Grading Act establishes a framework for grading and labeling structural timber produced in New Mexico. It introduces a structural timber grading certificate program managed 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, issuing certificates to those who complete the program, and creating rules for the program's operation, including the qualifications for instructors and the processes for certificate suspension or revocation.

Additionally, the Act mandates that graded structural timber can be used in residential and commercial construction within the state, with specific labeling requirements to ensure transparency and traceability. The label must include essential information such as the grader's name, sawmill location, timber species, and moisture content at the time of grading. The bill also includes an appropriation of $150,000 from the general fund to support the establishment of the grading program and curriculum development.