Bill Text: PA HB2178 | 2011-2012 | Regular Session | Introduced

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Bill Title: Expanding the scope of the act to include iron and manufactured goods.

Spectrum: Moderate Partisan Bill (Democrat 35-4)

Status: (Introduced - Dead) 2012-02-03 - Referred to STATE GOVERNMENT [HB2178 Detail]

Download: Pennsylvania-2011-HB2178-Introduced.html

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PRINTER'S NO. 3043
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2178 Session of2012
INTRODUCED BY WHITE, BARRAR, BISHOP, K. BOYLE, BRENNAN, BROWNLEE, CALTAGIRONE, D. COSTA, DALEY, DAVIS, DAVIDSON, DeLUCA, DePASQUALE, FABRIZIO, FREEMAN, GEORGE, GIBBONS, GOODMAN, HALUSKA, HARHAI, HORNAMAN, W. KELLER, MAHONEY, MANN, MULLERY, MUNDY, MURPHY, M. O'BRIEN, PETRARCA, READSHAW, SABATINA, SANTARSIERO, K. SMITH, TRUITT AND YOUNGBLOOD, FEBRUARY 3, 2012
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 3, 2012
AN ACT
Amending the act of March 3, 1978 (P.L.6, No.3), entitled "An
act to promote the general welfare and stimulate the economy
of the Commonwealth by requiring that all public bodies,
including the Commonwealth, its political subdivisions, and
all authorities, include in all contracts for construction,
reconstruction, alteration, repair, improvement or
maintenance of improvements of a permanent or temporary
nature, a provision that if any steel products are to be used
in the performance of the contract only steel products
produced in the United States shall be used, and imposing
liability for violation of this act," expanding the scope of
the act to include iron and manufactured goods.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title and sections 1, 3 and 4 of the act of
March 3, 1978 (P.L.6, No.3), known as the Steel Products
Procurement Act, are amended to read:
AN ACT
Amending the act of March 3, 1978 (P.L.6, No.3), entitled "An
act to promote the general welfare and stimulate the economy
of the Commonwealth by requiring that all public bodies,
including the Commonwealth, its political subdivisions, and
all authorities, include in all contracts for construction,
reconstruction, alteration, repair, improvement or
maintenance of improvements of a permanent or temporary
nature, a provision that if any iron or steel products or
manufactured goods are to be used in the performance of the
contract only iron or steel products or manufactured goods
produced in the United States shall be used, and imposing
liability for violation of this act.
Section 1. This act shall be known and may be cited as the
["Steel Products Procurement] "Buy American Act."
Section 3. It is hereby determined by the General Assembly
of Pennsylvania and declared as a matter of legislative findings
that:
(1) The Commonwealth of Pennsylvania is one of the
leading states in the United States in the production of
steel.
(2) [The production of steel products constitutes a
major industry of the Commonwealth and, as such, provides the
jobs and family incomes of hundreds of thousands of the
people of this Commonwealth and, in turn, millions of persons
in the United States] The production of iron, steel and
manufactured goods provides jobs and family income to many
individuals in this Commonwealth and, in turn, the jobs and
family incomes of millions of persons in the United States.
(3) The taxes paid to the Commonwealth and its political
subdivisions by employers and employees engaged in the
production and sale of iron and steel products and
manufactured goods are [one of the largest single sources] a
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large source of public revenues in this Commonwealth.
(4) It has, for many years, been the policy of the
Commonwealth to aid and support the development and expansion
of industry in this Commonwealth in order to foster the
economic well-being of the Commonwealth and its people.
(5) The economy and general welfare of the Commonwealth
and its people, as well as the economy, general welfare and
national security of the United States, are inseparably
related to the preservation and development of [the steel
industry] manufacturing industries in the Commonwealth and in
the other states of the United States.
(6) Recognizing this link, it should be the policy of
the Commonwealth that its taxpayer dollars be reinvested with
its individual and employer taxpayers in order to foster job
retention and growth, particularly within the manufacturing
sector, and to ensure a broad and healthy tax base for future
investments vital to this Commonwealth's infrastructure.
(7) The Commonwealth's procurement policies should
reflect this Commonwealth's, and indeed, the nation's,
principles, ensuring that the products of those companies and
workers who abide by workplace safety and environmental laws
and regulations should be rewarded with a common sense
preference in government contracting.
The Pennsylvania General Assembly therefore declares it to be
the policy of the Commonwealth of Pennsylvania that all public
officers and agencies should, at all times, aid and promote the
development of the [steel industry] manufacturing industries of
the United States in order to stimulate and improve the economic
well-being of the Commonwealth and its people.
Section 4. (a) Every public agency shall require that every
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contract document for the construction, reconstruction,
alteration, repair, improvement or maintenance of public works
contain a provision that, if any iron or steel products or
manufactured goods are to be used or supplied in the performance
of the contract, only iron and steel products and manufactured
goods as herein defined shall be used or supplied in the
performance of the contract or any subcontracts thereunder.
(b) This section shall not apply in any case where the head
of the public agency, in writing, determines that [steel
products as herein defined are not produced in the United States
in sufficient quantities to meet the requirements of the
contract.]:
(1) their application would be inconsistent with the
public interest;
(2) such materials and products are not produced in the
United States in sufficient and reasonably available
quantities and of a satisfactory quality; or
(3) inclusion of domestic material will increase the
cost of the overall project contract by more than 25%.
(c) If the head of a public agency determines that it is
necessary to waive the application of subsection (a) based on a
finding under subsection (b), the head of the public agency
shall, before the date on which the finding takes effect:
(1) publish in the Pennsylvania Bulletin a detailed
written justification as to why the waiver is needed;
(2) consider all comments received during the comment
period in evaluating the waiver request; and
(3) provide notice of the finding and an opportunity for
public comment on the finding for a reasonable period of time
not to exceed 15 days.
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(d) The provisions of subsection (b) shall not apply to
products produced in a foreign country where the head of a
public agency, in consultation with the United States Trade
Representative, determines that:
(1) the foreign country is a party to an agreement with
the United States and pursuant to that agreement the head of
an agency of the United States has waived the requirements of
this section; and
(2) the foreign country has violated the terms of the
agreement by discriminating against products covered by this
section that are produced in the United States and are
covered by the agreement.
Section 2. Section 5(a) of the act, amended July 9, 1984
(P.L.674, No.144), is amended to read:
Section 5. (a) No public agency shall authorize, provide
for or make any payments to any person under any contract
containing the provision required by section 4 unless, when
unidentified iron or steel products or manufactured goods are
supplied under a contract, such person has provided
documentation including, but not limited to, invoices, bills of
lading, and mill certification that the iron or steel was melted
and the iron, steel and goods were manufactured in the United
States, which establish that such person has fully complied with
such provision. If a [steel] product is identifiable from its
face, such person must submit certification which satisfies the
public agency that such person has fully complied with the
provision required by section 4. Any such payments made to any
person by any public agency which should not have been made as a
result of this section shall be recoverable directly from the
contractor, subcontractor, manufacturer or supplier who did not
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comply with section 4 by either such public agency or the
Attorney General of Pennsylvania.
* * *
Section 3. Section 6 of the act is amended by adding a
definition to read:
Section 6. The following words and phrases when used in this
act shall have, unless the context clearly indicates otherwise,
the meanings given to them in this section:
"Manufactured."
(1) In the case of an iron or steel product, all
manufacturing must take place in the United States, except
metallurgical processes involving the refinement of steel
additives.
(2) In the case of a manufactured good, a good will be
considered manufactured in the United States if:
(i) all the manufacturing process for the product
take place in the United States; and
(ii) all of the components of the product must be of
United States origin. A component will be considered a
product of United States origin if all the manufacturing
processes take place in the United States, regardless of
the origin of its subcomponents.
* * *
Section 4. This act shall apply to contracts awarded
pursuant to an invitation for bids issued on or after the
effective date of this act.
Section 5. This act shall take effect in 60 days.
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