A5064 —

A5064 ASL Statement 1/25/21 ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE   STATEMENT TO   ASSEMBLY, No.

5064   STATE OF NEW JERSEY 219th LEGISLATURE   INTRODUCEDDATED: DECEMBER 7, 2020     Sponsored by:

Assemblyman  JANUARY ANTHONY25, S.2021         The Assembly State and Local Government Committee reports favorably Assembly Bill No.

VERRELLI5064. District 15 (Hunterdon and Mercer) Assemblyman  THOMAS P.

GIBLIN      DistrictThis 34bill, (Essexdesignated as the “New Jersey Buy American Act,” requires all contracts over $1 million in value and Passaic)made Assemblyman and JOEawarded DANIELSENby Districta 17“State (Middlesexcontracting agency,” as that term is defined in the bill, for the construction, reconstruction, alteration, repair, maintenance, or improvement of any surface highway or bridge, to contain a provision that any iron or steel product used or supplied in the performance of the contract, or any subcontract thereto, and Somerset)permanently  incorporated Co-Sponsoredinto by:a surface highway or bridge, is to be produced or made in whole or substantial part in the United States, its territories, or possessions.

Assemblymen      Armato,The Mazzeo,bill’s Assemblywomenprovisions Jasey,would Murphy,not Assemblymanapply Tully,to Assemblywomana Swain,surface Assemblymanhighway Calabreseor andbridge Assemblywomancontract McKnightif  the  head  of  the SYNOPSISState     contracting “Newagency, Jerseyin Buythat Americanperson’s Act”;sole discretion, determines that:

requires      certain(1)  Statecomplying agencywith the provisions of the bill would not be in the public interest, or would result in the loss or reduction of federal funding for the surface highway andor bridge constructioncontract, contractsor the ability to includeobtain ironthat andfederal steelfunding productswould madebe inlimited U.S.or jeopardized by the agency’s compliance with the bill;

       CURRENT(2)  VERSIONthere OFis TEXTan     immediate Asor introduced.emergency need existing for the structural iron or structural steel;

        An(3)  Actthe concerningstructural certainiron highwayor andstructural bridgesteel contractsis not manufactured in the United States in sufficient and supplementingreasonably Titleavailable 52quantities or of satisfactory quality or design to meet the RevisedState Statutes.contracting agency’s requirements;

           (4)  Beobtaining Itthe Enactediron byor steel product in the SenateUnited andStates Generalwould Assemblyincrease the cost of the Statecontract ofby Newan Jersey:unreasonable amount;

           (5)  1.   the Thisiron actor shallsteel beis knownnecessary andfor maythe beoperation citedof asor therepairs “Newof Jerseycritical Buyinfrastructure Americanthat Act.”is  necessary     to 2.   avoid Asa useddelay in P.L.   the ,delivery c.   of (C.       critical )services (pendingthat beforecould compromise the Legislaturepublic aswelfare; this bill):

          “Permanently(6)  incorporated”a meansreciprocal antrade ironagreement or steeltreaty producthas thatbeen isnegotiated requiredby tothe remainState inor placeby at the completionUnited ofStates thegovernment surfaceon highwaybehalf of or bridgeincluding contract,this inState with a fixedforeign location,nation affixed to the surface highway or bridgegovernment toproviding whichfor itnondiscriminatory wasgovernmental incorporated. procurement Ironpractices andor steelpolicies productswith that areforeign capablenation of being moved from one location to another shall not be considered permanently incorporated into a surface highway or bridge.government;

     "State contracting agency" or "agency"      means(7)  anythe ofdesign theand principalenvironmental departmentsstudies infor the Executivesurface Branchhighway of State Government, any division, board, bureau, office, commission, or otherbridge instrumentalityproject createdhave bycommenced aprior principalto department,the andeffective anydate independentof Statethe authority.bill.

          “SurfaceThe highwaybill’s provisions are not intended to contravene any existing treaties, laws, trade agreements, or bridgeregulations contract”of meansthe aUnited contractStates or subsequent trade agreements entered into bybetween aany foreign countries and this State contractingor agencythe involvingUnited States.  Further, nothing in the construction,bill reconstruction,is alteration,to repair,be maintenance,interpreted orto improvementrequire ofa anycontractor performing a surface highway or bridge undercontract to certify that the jurisdictioniron or controlsteel ofproduct thatused agency.in a surface highway or bridge is made in whole, or in substantial part, in the United States.

       3.    Notwithstanding the provisions of any law, rule, regulation, or order to the contrary, any surface highway or bridge contract over $1 million in value and made and awarded by a State contracting agency, shall contain a provision requiring that any iron or steel product used or supplied in the performance of the surface highway or bridge contract, or any subcontract thereto, and permanently incorporated into the surface highway or bridge, shall be produced or made, in whole, or in substantial part as determined by the State contracting agency, in the United States, its territories, or possessions.  In the case of a structural iron or structural steel product, all manufacturing shall take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving the refinement of steel additives.

       4.    The provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall not apply to a surface highway or bridge contract if the head of a State contracting agency constructing a surface highway or bridge, in the head of the agency’s sole discretion, determines that:

     a.     complying with the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill):

     (1)   would not be in the public interest;

or      (2)   would result in the loss or reduction of federal funding for the surface highway or bridge contract, or the ability to obtain that federal funding would be limited or jeopardized by the agency’s compliance with P.L.    , c.    (C.        ) (pending before the Legislature as this bill);

     b.    there is an immediate or emergency need existing for the structural iron or structural steel;

     c.     the structural iron or structural steel is not manufactured in the United States in sufficient and reasonably available quantities or of satisfactory quality or design to meet the State contracting agency’s requirements;

     d.    obtaining the iron or steel product in the United States would increase the cost of the contract by an unreasonable amount;

     e.     the iron or steel is necessary for the operation 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;

     f.     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 providing for nondiscriminatory governmental procurement practices or policies with that foreign nation or government;

or      g.    the design and environmental studies for the surface highway or bridge project have commenced prior to the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

       5.    Nothing in P.L.    , c.    (C.        ) (pending before the Legislature as this bill) is intended to contravene any existing treaties, laws, trade agreements, or regulations of the United States or subsequent trade agreements entered into between any foreign countries and this State or the United States.  Nothing in P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall be interpreted to require a contractor performing a surface highway or bridge contract to certify that the iron or steel product used in a surface road or bridge pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill) is made in whole, or in substantial part, in the United States.

       6.    Any State contracting agency subject to the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) may establish rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as necessary to implement the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

       7.    This act shall take effect immediately but shall not apply to any surface highway or bridge contract that has been previously awarded, or has pending bids or pending requests for proposals issued, as of the effective date of this act.

    STATEMENT        This bill, designated as the “New Jersey Buy American Act,” requires all contracts over $1 million in value and made and awarded by a “State contracting agency,” as that term is defined in the bill, for the construction, reconstruction, alteration, repair, maintenance, or improvement of any surface highway or bridge, to contain a provision that any iron or steel product used or supplied in the performance of the contract, or any subcontract thereto, and permanently incorporated into a surface highway or bridge, is to be produced or made in whole or substantial part in the United States, its territories, or possessions.

     The bill’s provisions would not apply to a surface highway or bridge contract if the head of the State contracting agency, in that person’s sole discretion, determines that:

     (1)   complying with the provisions of the bill would not be in the public interest, or would result in the loss or reduction of federal funding for the surface highway or bridge contract, or the ability to obtain that federal funding would be limited or jeopardized by the agency’s compliance with the bill;

     (2)   there is an immediate or emergency need existing for the structural iron or structural steel;

     (3)   the structural iron or structural steel is not manufactured in the United States in sufficient and reasonably available quantities or of satisfactory quality or design to meet the State contracting agency’s requirements;

     (4)   obtaining the iron or steel product in the United States would increase the cost of the contract by an unreasonable amount;

     (5)   the iron or steel is necessary for the operation 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;

     (6)   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 providing for nondiscriminatory governmental procurement practices or policies with that foreign nation or government;

or      (7)   the design and environmental studies for the surface highway or bridge project have commenced prior to the effective date of the bill.

     The bill’s provisions are not intended to contravene any existing treaties, laws, trade agreements, or regulations of the United States or subsequent trade agreements entered into between any foreign countries and this State or the United States.  Further, nothing in the bill is to be interpreted to require a contractor performing a surface highway or bridge contract to certify that the iron or steel product used in a surface highway or bridge is made in whole, or in substantial part, in the United States.