Relating to requirements and preferences for purchasing construction materials produced in the United States and this state.

The text as introduced · 915 words

90R2203 LRM-F

By: Dean
H.B. No. 949

A BILL TO BE ENTITLED

AN ACT

relating to requirements and preferences for purchasing

construction materials produced in the United States and this

state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 2252, Government Code, is amended by

adding Subchapter H to read as follows:

SUBCHAPTER H. REQUIREMENTS AND PREFERENCES FOR DOMESTIC

CONSTRUCTION MATERIALS

Sec. 2252.231. DEFINITIONS. In this subchapter:

(1) "Construction materials" means, if permanently

incorporated into a public infrastructure project, iron, steel,

manufactured products, concrete, cement, aggregates, glass,

lumber, drywall, copper, aluminum, asphalt, plastics, and

fiber-optic cable.

(2) "Political subdivision" includes a county, a

municipality, a municipal utility district, a water control and

improvement district, a special utility district, and other types

of water districts.

(3) "Procuring entity" means a:

(A) state agency; or

(B) political subdivision.

(4) "Produced in the United States" means:

(A) with respect to iron and steel, all

manufacturing processes, from the initial melting stage through the

application of coatings, occurred in the United States;

(B) with respect to a manufactured product:

(i) the product was manufactured in the

United States; and

(ii) the cost of the product's components

that are mined, produced, or manufactured in the United States is

greater than 55 percent of the total cost of all the product's

components; and

(C) with respect to a construction material other

than iron, steel, or a manufactured product, all manufacturing

processes for the material occurred in the United States.

(5) "Public infrastructure project" means the

construction, reconstruction, alteration, repair, maintenance, or

improvement of any building, structure, or infrastructure by a

procuring entity through a contract with another person. The term

includes any:

(A) road, highway, or bridge;

(B) water, wastewater, or flood control

facility;

(C) public building or facility;

(D) transit or rail facility, port, or airport;

or

(E) broadband, telecommunications, or utility

infrastructure.

(6) "State agency" has the meaning assigned by Section

2151.002.

Sec. 2252.232. DUTY TO REQUIRE PURCHASE OF CONSTRUCTION

MATERIALS PRODUCED IN UNITED STATES. Except as provided by Section

2252.235, for each public infrastructure project of a procuring

entity with an estimated contract value of $1 million or more, the

procuring entity shall require the bid documents provided to all

bidders and the resulting contract to include a provision requiring

any construction materials used in the project to be produced in the

United States.

Sec. 2252.233. POWER TO REQUIRE PURCHASE OF CONSTRUCTION

MATERIALS PRODUCED IN UNITED STATES. For each public

infrastructure project by a procuring entity with an estimated

contract value of $1 million or less, the procuring entity may

require the bid documents provided to all bidders and the resulting

contract to include a provision requiring any construction

materials used in the project to be produced in the United States.

Sec. 2252.234. PREFERENCE FOR CONSTRUCTION MATERIALS

PRODUCED IN TEXAS. (a) A state agency that as a procuring entity

includes a contract provision under Section 2252.232 or 2252.233

shall also include a contract provision requiring the contractor to

purchase products and materials in the manner provided by Section

2155.444.

(b) A political subdivision that as a procuring entity

includes a contract provision under Section 2252.232 or 2252.233

may also include the contract provision described by Subsection

(a).

Sec. 2252.235. DETERMINATION FOR EXEMPTION BASED ON

NONAVAILABILITY, DELAY, OR COST. (a) Section 2252.232 does not

apply to a public infrastructure project of a procuring entity if

the procuring entity determines in writing that:

(1) the construction materials needed for the public

infrastructure project and produced in the United States are not:

(A) reasonably available in sufficient

quantities; or

(B) of satisfactory quality; or

(2) compliance with Section 2252.232 would:

(A) materially delay the project schedule; or

(B) result in unreasonable cost increases.

(b) A determination under this section is not subject to

public disclosure under Chapter 552. A procuring entity shall

retain the reasoning for a determination under this section and

provide the information to the comptroller for inclusion in the

report required by Section 2252.239.

Sec. 2252.236. EXEMPTIONS FOR DISASTER-RELATED AND

FEDERALLY FUNDED PURCHASES. This subchapter does not apply to a

contract:

(1) entered into in response to a state of disaster

declared under Chapter 418; or

(2) involving federal funds.

Sec. 2252.237. CONFLICT WITH OTHER STATE LAWS. To the

extent of any conflict between this subchapter and another law of

this state, including Subchapter G, the more stringent law

controls.

Sec. 2252.238. RULES. The comptroller shall adopt rules to

administer this subchapter, including rules for ensuring

contractor compliance.

Sec. 2252.239. REPORT. (a) On or before September 1 of

each year, the comptroller shall collect information from procuring

entities on the purchase of construction materials under a public

infrastructure project contract, including:

(1) the source of the purchases; and

(2) for a contract exempted from this subchapter under

Section 2252.235, the reasoning supporting the exemption.

(b) On or before December 1 of each year, the comptroller

shall submit a summary report of the information collected under

Subsection (a) to the legislature.

SECTION 2. Not later than December 1, 2027, the comptroller

shall adopt rules necessary to implement Subchapter H, Chapter

2252, Government Code, as added by this Act.

SECTION 3. Subchapter H, Chapter 2252, Government Code, as

added by this Act, applies only in relation to a contract for which

the request for bids or proposals or other applicable expression of

interest is made public on or after the effective date of this Act.

SECTION 4. This Act takes effect September 1, 2027.