The Timber Grading Act establishes a framework for the grading and labeling of structural timber produced within the state of New Mexico. It defines key terms such as "building inspector," "certificate," "grader," and "structural timber," and outlines the responsibilities of the forestry division in creating a structural timber grading certificate program. This program will provide training for sawmill owners and employees, develop a state-specific grading system based on national standards, and issue certificates to those who complete the program. The division is also empowered to set rules regarding the awarding of certificates, training components, and the processes for suspending or revoking certificates.

Additionally, the Act mandates that graders 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 sawmill can be graded and labeled by that grader. The Act allows for the use of in-state graded and labeled 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 structural timber used in construction within New Mexico.