HOUSE BILL No. 1728
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-16-8.
Synopsis: Preference for domestic foundry products. Requires that
foundry products produced in the United States must be used in state
and local public works projects unless certain conditions apply.
Effective: July 1, 2007.
Niezgodski, Stilwell, Grubb
January 26, 2007, read first time and referred to Committee on Commerce, Energy and
First Regular Session 115th General Assembly (2007)
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HOUSE BILL No. 1728
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-16-8-1; (07)IN1728.1.1. -->
SECTION 1. IC 5-16-8-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 1.
As used in (a) The definitions
in this section apply throughout
(b) "Foundry products" means products cast from ferrous and
nonferrous metals by foundries in the United States.
"Person" means a natural person, corporation, limited liability
company, partnership, or other business unit or association.
"Public agency" means:
(1) the state of Indiana, its departments, agencies, boards,
commissions, and institutions; and
(2) county, city, townships, school or conservancy districts, or
other governmental units or districts;
that let public bids for construction or other public works under Indiana
"Steel products" means products rolled, formed, shaped, drawn,
extruded, forged, cast, fabricated, or otherwise similarly processed, or
processed by a combination of two (2) or more of such operations, from
steel made in the United States by the open hearth, basic oxygen,
electric furnace, Bessemer, or other steel making process.
(f) "United States"
means refers to the United States of America.
and The term includes all territory, continental or insular, subject to
the jurisdiction of the United States.
SOURCE: IC 5-16-8-2; (07)IN1728.1.2. -->
SECTION 2. IC 5-16-8-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2. (a) 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 or foundry products are to be used or
supplied in the performance of the contract or subcontract, only steel
or foundry products
as defined by this chapter made in the United
States shall be used or supplied in the performance of the contract or
any of the subcontracts unless the head of the public agency
determines, in writing, that the cost of steel or foundry products is
deemed considered to be unreasonable.
(b) The head of each public agency shall issue rules which provide
that, for purposes of subsection (a),
of this section, the bid or offered
price of any steel or foundry products of domestic origin is not
deemed to be considered unreasonable if it the price does not exceed
the sum of:
(1) the bid or offered price of like steel or foundry products of
foreign origin (including any applicable duty); plus
(2) a differential of fifteen percent (15%) of the bid or offered
price of the steel or foundry products of foreign origin.
However, the fifteen percent (15%) differential provided by
subdivision (2) may be increased to twenty-five percent (25%), if the
head of the public agency determines that use of steel or foundry
products of domestic origin would benefit the local or state economy
through improved job security and employment opportunity. Whenever
the head of a public agency determines that the differential should be
increased above fifteen percent (15%) for a particular project, the head
of the agency shall file a report with the governor and the legislative
services agency detailing the reasons for such determination and the
probable impact on the economy of the use of domestic steel or
foundry castings in the project. A report filed under this subsection
with the legislative services agency must be in an electronic format
under IC 5-14-6.
SOURCE: IC 5-16-8-4; (07)IN1728.1.3. -->
SECTION 3. IC 5-16-8-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 4.
The provisions of
the head of the public agency determines,
in writing, that steel or foundry
products are not produced in the
United States in sufficient quantities to meet the requirements of the