12 | 13 | | A BILL TO BE ENTITLED 1 |
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13 | 14 | | AN ACT PROVIDING THAT THE STATE AND LOCAL GOVERNMENTS SHALL USE 2 |
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14 | 15 | | AMERICAN IRON AND STEEL IN PUBLIC WORKS PROJECTS. 3 |
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15 | 16 | | The General Assembly of North Carolina enacts: 4 |
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16 | 17 | | SECTION 1. Article 8 of Chapter 143 of the General Statutes is amended by adding 5 |
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17 | 18 | | a new section to read: 6 |
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18 | 19 | | "§ 143-128.5. Required use of American-produced iron and steel products. 7 |
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19 | 20 | | (a) Definitions. – The following definitions apply in this section: 8 |
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20 | 21 | | (1) Governmental entity. – As defined in G.S. 143-128.1B. 9 |
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21 | 22 | | (2) Iron or steel product. – Any product made primarily of iron or steel, including, 10 |
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22 | 23 | | but not limited to, lined or unlined pipes and fittings; bars and rods; wire, wire 11 |
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23 | 24 | | ropes, and link chains; forgings; grating and drainage products; access covers, 12 |
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24 | 25 | | hatches, manhole covers, and other castings; hydrants; electric transmission 13 |
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25 | 26 | | and distribution poles; tanks; flanges; pipe clamps and restraints; valves; 14 |
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26 | 27 | | structural steel and other steel mill products; materials made primarily of iron 15 |
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27 | 28 | | and steel within precast concrete; and other construction materials made 16 |
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28 | 29 | | primarily of iron or steel. 17 |
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29 | 30 | | (3) Manufacturing process. – The application of a process to alter the form or 18 |
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30 | 31 | | function of materials or elements of a product in a manner that adds value and 19 |
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31 | 32 | | transforms the materials or elements into a new finished product functionally 20 |
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32 | 33 | | different from a finished product produced merely from assembling materials 21 |
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33 | 34 | | or elements into a product without applying such a process. 22 |
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34 | 35 | | (4) Produced in the United States. – With respect to iron and steel, all 23 |
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35 | 36 | | manufacturing processes, from initial melting through application of coatings, 24 |
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36 | 37 | | occurred in the United States, other than metallurgical processes to refine steel 25 |
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37 | 38 | | additives. 26 |
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38 | 39 | | (5) Public works project. – An activity paid for with any State-appropriated funds 27 |
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39 | 40 | | or State funds administered by a governmental entity which consists of the 28 |
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40 | 41 | | construction, maintenance, repair, renovation, remodeling, or improvement of 29 |
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41 | 42 | | a building, road, street, sewer, storm drain, water system, site development, 30 |
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42 | 43 | | irrigation system, reclamation project, gas or electrical distribution system, 31 |
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43 | 44 | | gas or electrical substation, or other facility, project, or portion thereof owned 32 |
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44 | 45 | | in whole or in part by any governmental entity. 33 |
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45 | 46 | | (b) Notwithstanding any other provision of law, a governmental entity awarding a 34 |
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46 | 47 | | contract for a public works project or for the purchase of materials for a public works project 35 |
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49 | 54 | | incorporated in the project shall be produced in the United States. This subsection does not apply 1 |
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50 | 55 | | to any of the following: 2 |
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51 | 56 | | (1) A public works project for which the governmental entity administering the 3 |
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52 | 57 | | funds for the project or the purchase of materials for the project finds that any 4 |
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53 | 58 | | of the following apply: 5 |
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54 | 59 | | a. Iron or steel products produced in the United States are not produced 6 |
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55 | 60 | | in sufficient quantities, reasonably available, or of satisfactory quality. 7 |
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56 | 61 | | b. The use of iron or steel products produced in the United States will 8 |
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57 | 62 | | increase the total cost of the project by more than twenty percent 9 |
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58 | 63 | | (20%). 10 |
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59 | 64 | | c. Complying with this subsection is inconsistent with the public interest. 11 |
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60 | 65 | | (2) A public works project that makes minimal use of foreign iron or steel 12 |
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61 | 66 | | materials when both of the following apply: 13 |
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62 | 67 | | a. The foreign iron or steel materials are incidental or ancillary to the 14 |
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63 | 68 | | primary product and are not separately identified in the project 15 |
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64 | 69 | | specifications. 16 |
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65 | 70 | | b. The cost of the foreign iron or steel materials does not exceed 17 |
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66 | 71 | | one-tenth of one percent (0.1%) of the total contract cost or two 18 |
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67 | 72 | | thousand five hundred dollars ($2,500), whichever is greater. For 19 |
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68 | 73 | | purposes of this sub-subdivision, the cost of the foreign iron or steel 20 |
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69 | 74 | | materials is that shown to be the value of those materials as they are 21 |
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70 | 75 | | delivered to the project. 22 |
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71 | 76 | | (3) Electrical components, equipment, systems, and appurtenances, including 23 |
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72 | 77 | | supports, covers, shielding, and other appurtenances related to an electrical 24 |
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73 | 78 | | system, necessary for operation or concealment, except transmission and 25 |
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74 | 79 | | distribution poles. 26 |
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75 | 80 | | (c) This section shall be applied in a manner consistent with, and may not be construed 27 |
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76 | 81 | | to impair, the State's obligations under any international agreement. 28 |
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77 | 82 | | (d) This section does not apply to contracts awarded by the Department of Transportation 29 |
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78 | 83 | | subject to the Buy America requirements of 23 C.F.R. § 635.410." 30 |
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79 | 84 | | SECTION 2. This act becomes effective July 1, 2026, and applies to contracts 31 |
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80 | 85 | | awarded on or after that date. 32 |
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