Senate Bill No. 160

(By Senators Bowman)


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[Introduced January 18, 1999;

referred to the Committee on Energy, Industry and Mining;

and then to the Committee on Finance.]

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A BILL to amend chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article two-a, relating to the domestic steel act; requiring the use of domestically produced steel products in construction projects supported wholly or in part by the state; exceptions; and penalties for violation.

Be it enacted by the Legislature of West Virginia:
That chapter five-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article two-a, to read as follows:
ARTICLE 2A. DOMESTIC STEEL ACT.
§5B-2A-1. Definitions.
As used in this section:
(1) "Steel products" means products rolled, formed, shaped, drawn, extended, forged, cast, fabricated or otherwise similarly processed, or processed by a combination of two 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.
(2) "United States" means the United States of America and includes all the territory, continental or insular, subject to the jurisdiction of the United States.
§5B-2A-2. Domestic steel products to be used in state supported projects.
Whenever any building or structure, including highway improvements, in whole or part, supported by the state and not yet bid, is to be erected or constructed, or whatever additions, alterations, or structural or other improvements are to be made, or heating, cooling, or ventilating plants or other equipment is to be installed or material supplied therefore, and if any steel products are to be used or supplied in the construction, repair, or improvement project, only steel products as defined in section one of this article may be used or supplied in the project.
§5B-2A-3. Exceptions.
The secretary of transportation may, in connection with any bridge project for which a contract has been entered into, authorize in writing the use of a minimal amount of foreign steel products if either of the following is true:
(1) The cost for each contract item used does not exceed one tenth of one percent of the total contract cost, or two thousand five hundred dollars, whichever is greater. For the purposes of this section, the cost is the value of the steel product as delivered to the project; or
(2) The secretary of transportation determines that specified steel materials are not produced in the United States in sufficient quantity or otherwise are not reasonably available to meet contract requirements.
§5B-2A-4. Penalties.
(a) Any person who violates the provisions of this article is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than ten thousand dollars.
(b) Any person so convicted under subsection (a) of this section is prohibited from contracting with the state for a period of five years on any project financed with state funds.



NOTE: The purpose of this bill is to require the use of domestically produced steel products in construction projects supported wholly or in part by the state.

This article is new; therefore, strike-throughs and underscoring have been omitted.