THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

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

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.

(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

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.