85R11636 YDB-F
By: Paddie H.B. No. 2780
A BILL TO BE ENTITLED
AN ACT
relating to the purchase of iron and steel products made in the
United States for certain governmental entity projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2252, Government Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. CERTAIN CONSTRUCTION AND INSTALLATION PROJECTS
Sec. 2252.201. DEFINITIONS. In this subchapter:
(1) "Governmental entity" means:
(A) this state; or
(B) a board, commission, department, office, or
other agency in the executive branch of state government.
(2) "Manufacturing process" means the application of a
process to alter the form or function of materials or elements of a
product in a manner that adds value and transforms the materials or
elements into a new finished product that is functionally different
from a finished product produced merely from assembling the
materials or elements into a product.
(3) "Produced in the United States" means, with
respect to iron and steel products, a product for which all
manufacturing processes, from initial melting through application
of coatings, occur in the United States, other than metallurgical
processes to refine steel additives.
(4) "Project" means a contract between a governmental
entity and another person to:
(A) construct, remodel, or alter a building, a
structure, or infrastructure, including a road or highway; or
(B) supply a material for a project described by
Paragraph (A).
Sec. 2252.202. UNIFORM PURCHASING CONDITION. Except as
provided by Section 2252.203, the uniform general conditions for a
project in which iron or steel products will be used must require
that the bid documents provided to all bidders and the contract
include a requirement that any iron or steel product used in the
project be produced in the United States.
Sec. 2252.203. EXEMPTIONS. (a) Section 2252.202 does not
apply to a project for which the governing body of the governmental
entity responsible for the project determines that:
(1) iron or steel products produced in the United
States are not:
(A) produced in sufficient quantities;
(B) reasonably available; or
(C) of a satisfactory quality; or
(2) use of iron or steel products produced in the
United States will increase the total cost of the project by more
than 20 percent.
(b) Electrical components, equipment, systems, and
appurtenances necessary for operation are not considered to be iron
or steel products and are exempt from the requirements of Section
2252.202.
Sec. 2252.204. INTERNATIONAL AGREEMENTS. This subchapter
shall be applied in a manner consistent with this state's
obligations under any international agreement.
SECTION 2. Subchapter F, Chapter 2252, Government Code, as
added by this Act, applies only to bid documents submitted or
contracts entered into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2017.