Enacts the "New York Buy American act"; provides that all contracts over one million dollars in value and made and awarded by any department or agency of the state for the construction, reconstruction, alteration, repair, maintenance or improvement of any roads or bridges shall contain a provision that the iron, steel and concrete used or supplied in the performance of the contract or any subcontract thereto and permanently incorporated into such road or bridge, shall be produced or made in whole or substantial part in the United States, its territories or possessions; enacts provisions relating to a working group between NYS and Canada.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8427A
SPONSOR: Morelle (MS) TITLE OF BILL: An act to amend the state finance law and the public
authorities law, in relation to enacting the "New York Buy American
Act"; and providing for the repeal of such provisions upon expiration
thereof
PURPOSE:
The purpose of this bill is to ensure that surface roads and bridges are
constructed with American made iron and steel.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - Provides that the short title of the bill is known as "New
York Buy American Act".
Section 2 and 3 - Section 146 of the state finance law and section2603-a
of the public authorities law are amended to provide that all contracts
over $1 million for the construction and reconstruction of surface roads
and bridges awarded by the department of transportation, the office of
general services, the State University of New York construction fund,
the dormitory authority, the metropolitan transportation authority, the
bridge authority, or the thruway authority must include a provision
requiring that all structural iron and steel used be made in the United
States. The requirement also applies to the initial melting stage
through the application of coatings, but not metallurgical processes
involving the refinement of steel additives.
These sections also provides certain exceptions to Buy American, includ-
ing that it would result in the loss, reduction or ability to obtain
federal funding, that there is an immediate or emergency need existing
for the structural steel or structural iron, that the structural steel
or structural iron is not manufactured in the United States in suffi-
cient and reasonably available quantities or of satisfactory quality or
design to meet the project requirements, that obtaining such steel or
iron in the United States would increase the cost of the contract by an
unreasonable amount, that the steel or iron is necessary for the opera-
tion of or repairs of critical infrastructure that is necessary to avoid
a delay in the delivery of critical services that could compromise the
public welfare, and that a reciprocal trade agreement or treaty has been
negotiated by the state or by the United States government on behalf of
or including this state with a foreign nation or government for nondis-
criminatory governmental procurement practices or policies with such
foreign nation or government.
These sections also provide that agencies and authorities covered under
this act shall be authorized to establish rules and regulations for the
effective administration of Buy American, provided however, that nothing
shall be interpreted to require a contractor to certify that the iron or
steel used in a road or bridge project pursuant to the Buy American
requirements is made in whole or in substantial part in the United
States
Section 4 - This section provides that a workgroup shall be convened to
evaluate: reciprocal trade access for any foreign state that may be
significantly impacted by the implementation of Buy American to the
detriment of New York state; the provisions of any formal trade agree-
ments established by the governments of the United States and such
foreign state; the expansion of the application of Buy American to
include other products manufactured in the United States, which shall
include but not be limited to concrete, cement and aluminum; the certif-
ication processes for these products; and the fiscal impact of the
implementation and expansion of Buy American. Additionally, the work-
group shall report on the impact of Buy American on the capital plans of
the department of transportation, the metropolitan transportation
authority, and the thruway authority, including but not limited to any
amendments to such capital plans necessary as a result of Buy American,
any change in cost of projects as a result Buy American, and any cost
savings discernible due to quality improvements or maintenance
reductions due to materials used as a result of Buy American. The work-
group shall provide an interim report on their findings on or before
January 1, 2019 and a final report on January 1, 2020.
Section 5 - Provides for the effective date.
JUSTIFICATION:
The economy and general welfare of the State and its people and the
economy and general welfare of the United States are inseparably linked
to the preservation and development of iron and steel in this State, as
well as all the other states of this nation. Recognizing this link, it
should be the policy of this State that its taxpayer dollars be rein-
vested with its individual and employer tax in order to foster job
retention and growth, particularly_- within this sector, and to ensure a
broad and healthy tax and user base for future investments vital to the
State's infrastructure.
The production of iron and steel products provides jobs and family
income to many individuals in this country and State and, in turn, to
millions of persons in the United States. It is important to keep a
rigorous iron and steel production industry in the United States because
it is vital to the economic welfare of the country.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
To be determined.
EFFECTIVE DATE:
This act shall take effect April 1, 2018 and shall apply to any state
contracts executed and entered into on or after such date and shall
exclude such contracts that have been previously awarded or have pending
bids or pending requests for proposals issued as of April 1, 2018, and
shall not apply to projects that have commenced project design and envi-
ronmental studies prior to such date; provided, however, that this act
shall expire and be deemed repealed April 15, 2020.
