Florida Senate - 2023 SB 304 By Senator Boyd 20-00398-23 2023304__ 1 A bill to be entitled 2 An act relating to United States-produced iron and 3 steel in public works projects; creating s. 255.0993, 4 F.S.; defining terms; requiring governmental entities 5 to include a requirement in certain contracts that 6 certain iron or steel products be produced in the 7 United States; providing exceptions; authorizing the 8 use of foreign steel and iron materials in certain 9 circumstances; exempting specified products from the 10 requirement; providing construction; requiring the 11 Department of Management Services and the Department 12 of Transportation to adopt rules for specified 13 purposes; providing a declaration of important state 14 interest; providing an effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Section 255.0993, Florida Statutes, is created 19 to read: 20 255.0993 Public works projects; United States-produced iron 21 and steel products.— 22 (1) DEFINITIONS.—As used in this section, the term: 23 (a) “Governmental entity” means the state, or any office, 24 board, bureau, commission, department, branch, division, or 25 institution thereof, or a separate agency or unit of local 26 government created or established by law or ordinance and the 27 officers thereof. The term includes, but is not limited to, a 28 county; a city, a town, or other municipality; or a department, 29 a commission, an authority, a school district, a taxing 30 district, a water management district, a board, a public 31 corporation, an institution of higher education, or other public 32 agency or body thereof authorized to expend public funds for the 33 construction, maintenance, repair, renovation, remodeling, or 34 improvement of public works. 35 (b) “Iron or steel product” means any product made 36 primarily of iron or steel, including, but not limited to, lined 37 or unlined pipes and fittings; bars and rods; wire, wire ropes, 38 and link chains; forgings; grating and drainage products; access 39 covers, hatches, manhole covers, and other castings; hydrants; 40 electric transmission and distribution poles; tanks; flanges; 41 pipe clamps and restraints; valves; structural steel and other 42 steel mill products; materials made primarily of iron and steel 43 within precast concrete; and other construction materials made 44 primarily of iron or steel. 45 (c) “Manufacturing process” means the application of a 46 process to alter the form or function of materials or elements 47 of a product in a manner that adds value and transforms the 48 materials or elements into a new finished product that is 49 functionally different from a finished product produced merely 50 from assembling materials or elements into a product without 51 applying such a process. 52 (d) “Produced in the United States” means that, with 53 respect to iron and steel, all manufacturing processes, from 54 initial melting through application of coatings, occur in the 55 United States, other than metallurgical processes to refine 56 steel additives. 57 (e) “Public works project” means an activity paid for with 58 any state-appropriated funds or state funds administered by the 59 state, which consists of the construction, maintenance, repair, 60 renovation, remodeling, or improvement of a building, road, 61 street, sewer, storm drain, water system, site development, 62 irrigation system, reclamation project, gas or electrical 63 distribution system, gas or electrical substation, or other 64 facility, project, or portion thereof owned in whole or in part 65 by any governmental entity. 66 (2) UNITED STATES-PRODUCED IRON AND STEEL REQUIREMENT.— 67 (a) Notwithstanding any other law, a governmental entity 68 entering into a contract for a public works project or for the 69 purchase of materials for a public works project must include in 70 the contract a requirement that any iron or steel product 71 permanently incorporated in the project be produced in the 72 United States. 73 (b) Paragraph (a) does not apply if the governmental entity 74 administering the funds for a public works project or the 75 purchase of materials for a public works project solely 76 determines that any of the following applies: 77 1. Iron or steel products produced in the United States are 78 not produced in sufficient quantities, reasonably available, or 79 of satisfactory quality. 80 2. The use of iron or steel products produced in the United 81 States will increase the total cost of the project by more than 82 20 percent. 83 3. Complying with paragraph (a) is inconsistent with the 84 public interest. 85 (c) When steel and iron materials are used in a public 86 works project, paragraph (a) does not prevent a minimal use of 87 foreign steel and iron materials if: 88 1. Such materials are incidental or ancillary to the 89 primary product and are not separately identified in the project 90 specifications. 91 2. The cost of such materials does not exceed one-tenth of 92 1 percent of the total contract cost or $2,500, whichever is 93 greater. For purposes of this subparagraph, the cost of such 94 materials is that shown to be the value of the iron or steel 95 products as they are delivered to the project. 96 (d) Electrical components, equipment, systems, and 97 appurtenances, including supports, covers, shielding, and other 98 appurtenances related to an electrical system, necessary for 99 operation or concealment, except transmission and distribution 100 poles, are not considered iron or steel products and are exempt 101 from the requirements of paragraph (a). 102 (3) INTERNATIONAL AGREEMENTS.—This section shall be applied 103 in a manner consistent with and may not be construed to impair 104 the state’s obligations under any international agreement. 105 (4) RULEMAKING.— 106 (a) Except as otherwise provided in this subsection, the 107 Department of Management Services shall develop guidelines and 108 procedures by rule to implement this section. 109 (b) The Department of Transportation shall develop 110 guidelines and procedures by rule to implement this section for 111 public works projects it administers. 112 Section 2. The Legislature determines and declares that 113 this act fulfills an important state interest. 114 Section 3. This act shall take effect July 1, 2023.