Text: SF2286            Text: SF2288
Complete Bill History


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: TLSB 5417SV (1) 84 je/sc 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. LSB 5417SV (1) 84 je/sc
Text: SF2286            Text: SF2288 Complete Bill History