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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 and steel products made in the |
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United States for certain governmental entity projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2252, Government Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. CERTAIN CONSTRUCTION AND INSTALLATION PROJECTS |
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Sec. 2252.201. DEFINITIONS. In this subchapter: |
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(1) "Governmental entity" means: |
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(A) this state; or |
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(B) a board, commission, department, office, or |
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other agency in the executive branch of state government. |
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(2) "Manufacturing process" means the application of a |
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process to alter the form or function of materials or elements of a |
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product in a manner that adds value and transforms the materials or |
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elements into a new finished product that is functionally different |
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from a finished product produced merely from assembling the |
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materials or elements into a product. |
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(3) "Produced in the United States" means, with |
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respect to iron and steel products, a product for which all |
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manufacturing processes, from initial melting through application |
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of coatings, occur in the United States, other than metallurgical |
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processes to refine steel additives. |
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(4) "Project" means a contract between a governmental |
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entity and another person to: |
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(A) construct, remodel, or alter a building, a |
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structure, or infrastructure, including a road or highway; or |
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(B) supply a material for a project described by |
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Paragraph (A). |
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Sec. 2252.202. UNIFORM PURCHASING CONDITION. Except as |
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provided by Section 2252.203, the uniform general conditions for a |
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project in which iron or steel products will be used must require |
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that the bid documents provided to all bidders and the contract |
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include a requirement that any iron or steel product used in the |
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project be produced in the United States. |
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Sec. 2252.203. EXEMPTIONS. (a) Section 2252.202 does not |
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apply to a project for which the governing body of the governmental |
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entity responsible for the project determines that: |
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(1) iron or steel products produced in the United |
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States are not: |
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(A) produced in sufficient quantities; |
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(B) reasonably available; or |
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(C) of a satisfactory quality; or |
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(2) use of iron or steel products produced in the |
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United States will increase the total cost of the project by more |
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than 20 percent. |
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(b) Electrical components, equipment, systems, and |
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appurtenances necessary for operation are not considered to be iron |
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or steel products and are exempt from the requirements of Section |
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2252.202. |
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Sec. 2252.204. INTERNATIONAL AGREEMENTS. This subchapter |
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shall be applied in a manner consistent with this state's |
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obligations under any international agreement. |
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SECTION 2. Subchapter F, Chapter 2252, Government Code, as |
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added by this Act, applies only to bid documents submitted or |
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contracts entered into on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2017. |