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A BILL TO BE ENTITLED
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AN ACT
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relating to the purchase of iron, steel, and manufactured goods |
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made in the United States for certain state, state-aided, and |
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governmental entity construction projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 2166, Government Code, is |
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amended by adding Section 2166.3031 to read as follows: |
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Sec. 2166.3031. UNIFORM PURCHASING CONDITION. (a) In this |
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section: |
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(1) "Component" means any article, material, or |
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supply, whether a manufactured good or a raw material, that is |
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directly incorporated into a manufactured good. |
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(2) "Manufactured good" means a product produced as a |
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result of a manufacturing process. |
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(3) "Manufacturing process" means the application of a |
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process to alter the form or function of the components of a product |
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in a manner that adds value and transforms the components into a new |
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finished product that is functionally different from a finished |
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product produced merely from assembling the components into a |
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product. |
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(4) "Produced in the United States" means: |
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(A) with respect to iron and steel products, a |
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product for which all manufacturing processes, from initial melting |
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through application of coatings, occur in the United States, other |
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than metallurgical processes to refine steel additives; and |
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(B) with respect to manufactured goods, a |
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manufactured good for which: |
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(i) all of the manufacturing processes that |
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produced the manufactured good occur in the United States; and |
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(ii) more than 60 percent of the components |
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of the manufactured good, by cost, originate or are manufactured in |
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the United States. |
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(b) For purposes of Subsection (a)(4)(B)(ii), if a |
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component originates in the United States, the entire cost of that |
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component is included in the calculation under that subparagraph of |
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the percentage of the component costs for the manufactured good. |
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(c) Except as provided by Subsection (d), the uniform |
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general conditions for a construction project in which iron, steel, |
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or manufactured goods will be used must require that the bid |
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documents provided to all bidders and the contract include a |
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requirement that the iron, steel, and manufactured goods used in |
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the project be produced in the United States. |
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(d) Subsection (c) does not apply to a project for which the |
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governing body of the governmental entity responsible for the |
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project determines that: |
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(1) iron, steel, or specific manufactured goods are |
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not produced in the United States in sufficient and reasonably |
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available quantities and of a satisfactory quality; or |
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(2) inclusion of iron, steel, or specific manufactured |
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goods produced in the United States will increase the total cost of |
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the iron, steel, or specific manufactured goods for the project by |
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more than 15 percent. |
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(e) This section applies to a project otherwise exempted |
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from the application of this chapter by Sections 2166.003 and |
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2166.004. |
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SECTION 2. Section 2166.003(b), Government Code, is amended |
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to read as follows: |
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(b) Only Sections 2166.104, 2166.151, 2166.152, 2166.153, |
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2166.154, 2166.155, 2166.251, 2166.252, and 2166.3031 and |
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Subchapter H apply to a construction project undertaken by or for |
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the Texas Department of Criminal Justice for the imprisonment of |
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individuals convicted of felonies other than state jail felonies. |
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SECTION 3. Section 2166.3031, Government Code, as added by |
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this Act, applies only to bid documents submitted or contracts |
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entered into on or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2015. |