Senate File 2287     



                                    SENATE FILE       
                                    BY  COMMITTEE ON ECONOMIC
                                        GROWTH/REBUILD IOWA

                                    (SUCCESSOR TO SF 2222)

                                         A BILL FOR

     1 An Act requiring American products to be used for public
     2    improvements, providing a penalty, and including
     3    applicability provisions.
     4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  NEW SECTION.  73.22  Title.
  1  2    This division may be cited as the "Iowa Buy American Act".
  1  3    Sec. 2.  NEW SECTION.  73.23  Definitions.
  1  4    1.  "Construction" includes reconstruction, alteration,
  1  5 repair, improvement, and maintenance.
  1  6    2.  "Governmental unit" means the state, or any county, city,
  1  7 or other political subdivision or any department, division,
  1  8 board, or other agency of any of these entities.
  1  9    3.  "Manufactured in the United States" means:
  1 10    a.  For an iron or steel product, all the manufacturing of
  1 11 the iron or steel product, other than metallurgical processes
  1 12 involving the refinement of steel additives, took place in the
  1 13 United States.
  1 14    b.  For a manufactured good which is not an iron or steel
  1 15 product, all of the following:
  1 16    (1)  All the manufacturing processes for the manufactured
  1 17 good took place in the United States.
  1 18    (2)  All of the components of the manufactured good are
  1 19 of United States origin.  A component shall be considered of
  1 20 United States origin if all of the component's manufacturing
  1 21 processes took place in the United States, regardless of the
  1 22 origin of its subcomponents.
  1 23    4.  "Public improvement" means any structure, building,
  1 24 highway, waterway, street, bridge, transit system, airport, or
  1 25 other betterment, work, or improvement, whether of a permanent
  1 26 or temporary nature and whether for governmental or proprietary
  1 27 use.
  1 28    5.  "United States" means the United States of America and
  1 29 includes all territory, continental or insular, subject to the
  1 30 jurisdiction of the United States.
  1 31    Sec. 3.  NEW SECTION.  73.24  Use of American products for
  1 32 public improvements required.
  1 33    Each contract for the construction of a public improvement
  1 34 made by a governmental unit shall contain a provision requiring
  1 35 that the iron, steel, and manufactured goods used or supplied
  2  1 in the performance of the contract or any subcontract thereto
  2  2 be manufactured in the United States.
  2  3    Sec. 4.  NEW SECTION.  73.25  Waiver.
  2  4    1.  Section 73.24 may be waived for a contract for the
  2  5 construction of a public improvement made by a governmental
  2  6 unit if a person with the necessary authority for the
  2  7 governmental unit finds any of the following:
  2  8    a.  Application of section 73.24 would be contrary to the
  2  9 public interest.
  2 10    b.  The products necessary for the public improvement are
  2 11 not produced in the United States in sufficient and reasonably
  2 12 available quantities and of a satisfactory quality.
  2 13    c.  Application of section 73.24 would increase the cost of
  2 14 the contract by more than five percent.
  2 15    2.  If a person with the necessary authority for a
  2 16 governmental unit determines that a waiver pursuant to this
  2 17 section may be appropriate, the person shall do all of the
  2 18 following before granting a waiver:
  2 19    a.  Prepare a detailed, written justification as to why
  2 20 the waiver is needed.  The justification shall be published
  2 21 on the governmental unit's internet site and at least once in
  2 22 a newspaper of general circulation in any county where the
  2 23 public improvement will occur.  The justification shall also
  2 24 be made available to any member of the public upon request.
  2 25 The justification shall include notice of the opportunity for
  2 26 public comment required by paragraph "b".
  2 27    b.  Provide an opportunity for public comment on the
  2 28 justification for a reasonable period of time not to exceed
  2 29 fifteen days.
  2 30    c.  Consider all comments received during the comment period
  2 31 in evaluating whether to waive section 73.24.
  2 32    3.  If a person with the necessary authority for a
  2 33 governmental unit, in consultation with the United States trade
  2 34 representative, determines all of the following regarding a
  2 35 foreign country, this subsection shall not apply to products
  3  1 manufactured in that foreign country:
  3  2    a.  The foreign country is a party to an agreement with the
  3  3 United States, and, pursuant to the agreement, the head of a
  3  4 federal agency has waived the requirements of this division.
  3  5    b.  The foreign country has violated the terms of the
  3  6 agreement by discriminating against products covered by this
  3  7 agreement and by this division that are produced in the United
  3  8 States.
  3  9    Sec. 5.  NEW SECTION.  73.26  Penalty.
  3 10    A person shall be ineligible to receive any contract or
  3 11 subcontract with a governmental unit if a court or federal or
  3 12 state agency determines that the person intentionally did any
  3 13 of the following:
  3 14    1.  Represented that any product used in a public improvement
  3 15 to which this division applies was manufactured in the United
  3 16 States when the product was not manufactured in the United
  3 17 States.
  3 18    2.  Affixed a label bearing a "Made in America" inscription,
  3 19 or any inscription with the same meaning, to any product used
  3 20 in a public improvement to which this division applies when the
  3 21 product was not manufactured in the United States.
  3 22    Sec. 6.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
  3 23 3, shall not apply to this Act.
  3 24    Sec. 7.  APPLICABILITY.  This Act applies to public
  3 25 improvement contracts entered into on or after July 1, 2012.
  3 26                           EXPLANATION
  3 27    This bill requires each contract for the construction of
  3 28 a public improvement made by a governmental unit to contain
  3 29 a provision requiring that the iron, steel, and manufactured
  3 30 goods used or supplied in the performance of the contract or
  3 31 any subcontract be manufactured in the United States.  The bill
  3 32 provides definitions for "construction", "manufactured in the
  3 33 United States", and "public improvement".
  3 34    The bill provides that the requirement may be waived if a
  3 35 person with the necessary authority for a governmental unit
  4  1 finds that application of the requirement would be contrary to
  4  2 the public interest, that the products necessary for the public
  4  3 improvement are not produced in the United States in sufficient
  4  4 and reasonably available quantities and of a satisfactory
  4  5 quality, or that the requirement would increase the cost of the
  4  6 contract by more than 5 percent.
  4  7    The bill provides that before a person can grant a waiver of
  4  8 the requirement, the person must publish and make available a
  4  9 detailed, written justification as to why the waiver is needed.
  4 10 The justification is to include notice of an opportunity for
  4 11 public comment.  The comment period is to be for a reasonable
  4 12 period of time not to exceed 15 days.  The person must consider
  4 13 all comments received during the comment period in evaluating
  4 14 whether to grant a waiver.  The bill limits waiver authority
  4 15 for foreign countries which violate the terms of certain trade
  4 16 agreements with the United States.
  4 17    The bill provides that a person is ineligible to receive
  4 18 any contract or subcontract with a governmental unit if a
  4 19 court or federal or state agency determines that the person
  4 20 intentionally represented that any product used in a public
  4 21 improvement was manufactured in the United States when the
  4 22 product was not manufactured in the United States or affixed
  4 23 a label bearing a "Made in America" inscription, or any
  4 24 inscription with the same meaning, to any product used in a
  4 25 public improvement when the product was not manufactured in the
  4 26 United States.
  4 27    The bill may include a state mandate as defined in Code
  4 28 section 25B.3.  The bill makes inapplicable Code section 25B.2,
  4 29 subsection 3, which would relieve a political subdivision from
  4 30 complying with a state mandate if funding for the cost of
  4 31 the state mandate is not provided or specified.  Therefore,
  4 32 political subdivisions are required to comply with any state
  4 33 mandate included in the bill.
  4 34    The bill applies to public improvement contracts entered
  4 35 into on or after July 1, 2012.
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