SB 194-FN-LOCAL – AS INTRODUCED
2005 SESSION
05/09
SENATE BILL 194-FN-LOCAL
AN ACT relative to the use of domestic steel.
SPONSORS: Sen. Gallus, Dist 1; Sen. Barnes, Dist 17; Sen. D'Allesandro, Dist 20; Rep. C. Brown, Carr 1; Rep. Alger, Graf 6; Rep. Gionet, Graf 3; Rep. Mears, Coos 4
COMMITTEE: Transportation and Interstate Cooperation
This bill requires the use of domestic steel in state and local public works contracts.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-1027
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to the use of domestic steel.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Department of Administrative Services; Use of Domestic Steel in Public Works Contracts. Amend RSA 21-I by inserting after section 14-b the following new section:
21-I:14-c Use of Domestic Steel in Public Works Contracts.
I. In this section:
(a) “Domestic steel products” means products rolled, formed, shaped, drawn, extruded, forged, cast, or otherwise processed from steel made and processed in the United States by the open hearth, basic oxygen, electric furnace, bessemer, or any other steel making process.
(b) “Fabricated” includes cutting, drilling, punching, attaching parts, fitting, welding, burning, bending, surface preparation, and other manipulation of the raw steel material to create the specified finished product.
II. Each agency, municipality, and instrumentality of the state of New Hampshire, including any political subdivision thereof, shall require that every contract for the construction, reconstruction, alteration, repair, improvement, or maintenance of public works contain a provision that, if any steel products are required under the contract, only domestic steel products fabricated in the United States shall be used or supplied in the performance of the contract or any subcontract thereunder.
III. This section shall not apply if:
(a) The head of the public agency or municipality determines, in writing, that domestic steel products are not available in sufficient quantities to meet the requirements of the contract; or
(b) The cost of domestic steel products exceeds 115 percent of the cost of steel products obtained outside the United States.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
05-1027
Revised 2/22/05
SB 194 FISCAL NOTE
AN ACT relative to the use of domestic steel.
FISCAL IMPACT:
The Departments of Administrative Services and Transportation have determined this bill will increase state, county, and local expenditures by an indeterminable amount in FY 2006 and each year thereafter. The NH Municipal Association has determined this bill will increase local expenditures by an indeterminable amount. There will be no fiscal impact on state, county, and local revenue.
METHODOLOGY:
The Department of Transportation states there will be an expense to public agencies to incorporate the provisions of this bill into existing specifications, and subsequently administering, auditing, and enforcing the provisions. Currently, transportation projects utilizing federal aid under the jurisdiction of the Federal Highway Administration require that steel products be American-made, with exceptions similar to those included in Sections II and III of this bill. The Department states the Federal Highway Administration does not have records as to what the additional cost is as a result of requiring the use of domestic steel in public works contracts.
The Department of Administrative Services states the Division of Plant and Property Management spent $88,978 on steel not subject to domestic steel requirements in FY 2004. The Department estimates the cost of domestic hot and cold steel is currently 12.5% higher than foreign steel. Accordingly, this bill would increase Department expenditures by $11,123 if steel purchases remain constant in future fiscal years. The Department states it could not provide the amount of steel purchased by outside contractors for building construction and renovation projects, which would also be affected by this bill. The Department states it is unable to determine the fiscal impact on county and local expenditures.
The NH Municipal Association states this bill will increase local expenditures by an indeterminable amount due to the requirement to purchase more expensive domestic steel when less expensive imported steel is available, and because local employees or agents will need to conduct research to determine whether domestic steel is available and must be use