Texas House Bill HB770

Texas 2017 - 85th Regular

• Filed: 12/28/16

Caption

Relating to the purchase of iron, steel, and manufactured goods made in the United States for certain state, state-aided, and governmental entity construction projects.

Impact

If enacted, HB770 could significantly affect state laws regarding procurement processes in construction. By requiring that materials be sourced domestically, the bill could strengthen the domestic manufacturing sector, particularly in the iron and steel industries, boosting local job creation and economic stability. However, it may also lead to concerns about the availability and cost of such materials, potentially extending timelines or increasing budgets on government projects dependent on compliance with this new regulation.

Summary

House Bill 770 aims to mandate the use of iron, steel, and manufactured goods produced in the United States for state and governmental construction projects. It establishes that any construction project that utilizes these materials must include requirements in their bid documents and contracts that specify the materials used must be domestically produced. This initiative aligns with a broader goal of supporting local manufacturing and ensuring that taxpayer dollars are spent on products that contribute to the U.S. economy.

Contention

Notably, there are exceptions to the rule, where state entities may opt out of this requirement if they determine that necessary materials are either unavailable in sufficient quantities or if using domestic products would increase costs by more than 15 percent. This clause introduces a degree of flexibility that could alleviate potential adverse effects but also raises questions about its implementation and fairness. Legislators and stakeholders may debate the balance between promoting U.S. manufacturing and managing costs and project efficiencies.