SB112: relative to state use of domestic steel.

SB 112-FN-LOCAL - AS INTRODUCED

2003 SESSION

03-0360

05/09

SENATE BILL 112-FN-LOCAL

AN ACT relative to state use of domestic steel.

SPONSORS: Sen. Cohen, Dist. 24; Sen. Gallus, Dist 1; Rep. Shultis, Rock 86; Rep. Cloutier, Sull 22

COMMITTEE: Public Affairs

ANALYSIS

This bill requires the use of domestic steel in state 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0360

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to state use of domestic steel.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Use of Domestic Steel in Public Works Projects. Amend RSA by inserting after chapter 359-F the following new chapter:

CHAPTER 359-G

USE OF DOMESTIC STEEL IN PUBLIC WORKS PROJECTS

359-G:1 Definitions. In this chapter:

I. "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.

II. "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.

III. "Public agency" means any public body, governmental unit, department, board, commission, agency, or instrumentality of the state of New Hampshire, including a local political subdivision.

359-G:2 Use of Domestic Steel Products.

I. Each public agency 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.

II. This section shall not apply if:

(a) The head of the public agency, in writing, determines 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 15 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

03-0360

1/27/03

SB 112-FN-LOCAL - FISCAL NOTE

AN ACT relative to state use of domestic steel.

FISCAL IMPACT:

The Department of Transportation indicates this bill will increase state, county, and local expenditures by an indeterminable amount in FY 2003 and each year thereafter. The New Hampshire Municipal Association indicated this bill would increase local expenditures by an indeterminable amount. The New Hampshire Association of Counties indicated this bill would increase county expenditures by an indeterminable amount. This bill will have no impact on state, county and local revenues.

METHODOLOGY:

The Department of Transportation indicates that domestic steel costs range from 5 to 15% higher than foreign steel on typical State projects based on 2002 bidding results and direct contact with a pre-qualified low bid contractor for a sample of projects. The Department, therefore, assumes that state expenditures will increase by an indeterminable amount as a result. The Department also assumes that these same steel cost differentials will occur on the county and local level for capital projects, with corresponding increases in project expenditures. The Department further states that costs to administer, audit and enforce the provisions outlined in this bill will be absorbed within the Department's existing budget.

The New Hampshire Municipal Association stated that this bill may result in an increase in local expenditures for public works projects using domestic steel, and will impose additional indeterminable costs on municipalities for research to determine whether domestic steel is available and must be used on projects.

The New Hampshire Association of Counties could not estimate the impact of this bill because the overall increase in county expenditures will depend on the number and scope of county building projects and the comparative cost of domestic and non-domestic steel.