BILL ANALYSIS

C.S.H.B. 1656

By: Davis, Yvonne

State Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

"Buy American" laws ensure that American-made goods and materials have preference over imported products with respect to government procurement and infrastructure projects and are a proven job creation tool that is broadly supported by Congress, the American people, and hundreds of local governments throughout the United States.  A number of state legislatures are currently considering "Buy American" provisions.  C.S.H.B. 1656 seeks to help Texas reap the benefits of buying American goods by requiring the purchase of iron, steel, and manufactured goods made in the United States for state construction projects.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 1656 amends the Government Code to require the uniform general conditions for a state construction project in which iron, steel, or manufactured goods will be used to 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.

C.S.H.B. 1656 exempts from this requirement regarding the uniform general conditions for such construction projects a project for which the governmental entity responsible for the project determines either that 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 that 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. The bill makes its provisions applicable to a project otherwise exempted from the application of state law relating to state building construction and acquisition.

EFFECTIVE DATE

September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 1656 differs from the original by requiring the uniform general conditions for a state construction project in which iron, steel, or manufactured goods will be used to 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, whereas the original includes equipment among the iron, steel, and manufactured goods that must be included in the contract and the bid documents provided to all bidders for a state construction project in which iron, steel, or manufactured goods will be used.

C.S.H.B. 1656 differs from the original by exempting from the requirement regarding the purchase of iron, steel, and manufactured goods made in the United States for state construction projects  a project for which the governmental entity responsible for the project determines that 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, whereas the original exempts from the requirement a project for which the governmental entity responsible for the project determines that inclusion of iron, steel, or specific manufactured goods produced in the United States will increase the total cost of the project by more than 25 percent.