Bill Text: TX HB770 | 2017-2018 | 85th Legislature | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-03-29 - Left pending in committee [HB770 Detail]
Download: Texas-2017-HB770-Introduced.html
85R1561 YDB-D | ||
By: Davis of Dallas | H.B. No. 770 |
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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. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter G, Chapter 2166, Government Code, is | ||
amended by adding Section 2166.3031 to read as follows: | ||
Sec. 2166.3031. UNIFORM PURCHASING CONDITION. (a) In this | ||
section: | ||
(1) "Component" means any article, material, or | ||
supply, whether a manufactured good or a raw material, that is | ||
directly incorporated into a manufactured good. | ||
(2) "Manufactured good" means a product produced as a | ||
result of a manufacturing process. | ||
(3) "Manufacturing process" means the application of a | ||
process to alter the form or function of the components of a product | ||
in a manner that adds value and transforms the components into a new | ||
finished product that is functionally different from a finished | ||
product produced merely from assembling the components into a | ||
product. | ||
(4) "Produced in the United States" means: | ||
(A) 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; and | ||
(B) with respect to manufactured goods, a | ||
manufactured good for which: | ||
(i) all of the manufacturing processes that | ||
produced the manufactured good occur in the United States; and | ||
(ii) more than 60 percent of the components | ||
of the manufactured good, by cost, originate or are manufactured in | ||
the United States. | ||
(b) For purposes of Subsection (a)(4)(B)(ii), if a | ||
component originates in the United States, the entire cost of that | ||
component is included in the calculation under that subparagraph of | ||
the percentage of the component costs for the manufactured good. | ||
(c) Except as provided by Subsection (d), the uniform | ||
general conditions for a construction project in which iron, steel, | ||
or manufactured goods will be used must require that the bid | ||
documents provided to all bidders and the contract include a | ||
requirement that the iron, steel, and manufactured goods used in | ||
the project be produced in the United States. | ||
(d) Subsection (c) does not apply to a project for which the | ||
governing body of the governmental entity responsible for the | ||
project determines that: | ||
(1) iron, steel, or specific manufactured goods are | ||
not produced in the United States in sufficient and reasonably | ||
available quantities and of a satisfactory quality; or | ||
(2) inclusion of iron, steel, or specific manufactured | ||
goods produced in the United States will increase the total cost of | ||
the iron, steel, or specific manufactured goods for the project by | ||
more than 15 percent. | ||
(e) This section applies to a project otherwise exempted | ||
from the application of this chapter by Sections 2166.003 and | ||
2166.004. | ||
SECTION 2. Section 2166.003(b), Government Code, is amended | ||
to read as follows: | ||
(b) Only Sections 2166.104, 2166.151, 2166.152, 2166.153, | ||
2166.154, 2166.155, 2166.251, 2166.252, and 2166.3031 and | ||
Subchapter H apply to a construction project undertaken by or for | ||
the Texas Department of Criminal Justice for the imprisonment of | ||
individuals convicted of felonies other than state jail felonies. | ||
SECTION 3. Section 2166.3031, 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 4. This Act takes effect September 1, 2017. |