SB1212: State Agencies Not Required to Buy Made-in-USA Goods

Legislators reject bill pushing for U.S.-made products in public projects

This article was written with the assistance of ai software*

Photo bySimon KadulaonUnsplash

What did SB1212 want to accomplish?

SB1212 sets rules for state agencies in Oklahoma about buying products made in the United States.

It says that anything used in big public projects, like building schools or roads, must be made in the U.S. if the project costs more than $100,000. To count as "made in the U.S.," all parts of the product and the manufacturing process have to happen in the United States.

💥However, if following this rule would cause problems, like raising the cost by more than 25% or if it’s not in the public's best interest, the agency can ask for an exemption.

If a company breaks this rule on purpose, they won’t be allowed to bid on state contracts for five years, but they can appeal this decision. This rule doesn’t apply if the U.S. has a trade deal or treaty with another country.

Who would have benefited from this law?

Several groups would benefit from this law:

✔️U.S. Manufacturers: Companies that make products in the United States would benefit because state agencies would be required to buy goods made in the U.S., boosting their sales.

✔️American Workers: By requiring materials to be made in the U.S., this law could help protect and create jobs for American workers in manufacturing industries.

✔️State Agencies: State agencies involved in public projects could benefit from using high-quality, locally made materials, which might be easier to source and support the local economy.

✔️The U.S. Economy: Keeping money within the country by purchasing U.S.-made products helps strengthen the overall economy by supporting businesses and jobs at home.

✔️Local Communities: If more public projects use American-made products, it could lead to more job opportunities for people in the area, boosting local economies.

By prioritizing American-made goods, this law aims to support local industries, protect jobs, and strengthen the economy.

What are some concerns people might have about this law?

Some of these may be why the bill failed to pass:

⚠️Increased Costs: U.S.-made products might be more expensive than imported goods. Requiring state agencies to buy only American-made materials could raise costs for public projects, possibly leading to higher taxes or fewer completed projects.

⚠️Limited Options: Agencies might have fewer choices for products or materials, especially if certain items aren’t readily available from U.S. manufacturers, which could delay projects.

⚠️Exemptions Could Be Complicated: While agencies can request exemptions if costs increase by more than 25%, the process of applying for and approving exemptions could slow down important public projects.

⚠️International Trade Issues: If the U.S. has trade agreements with other countries, this law might create tension, especially if it affects industries that rely on imports or if other countries impose similar restrictions in response.

⚠️Potential for Legal Disputes: Companies that are disqualified from bidding on contracts for violating the law might appeal, leading to legal battles that could complicate state projects and delay contracts.

⚠️Impact on Small Businesses: Some small businesses, especially those that rely on imported materials, may struggle to meet the new requirements, making it harder for them to compete for state contracts.

Overall, while the law supports U.S. manufacturing, it could result in higher costs, fewer options, and delays in public projects.

This bill was introduced on 2/29/24 by Senator Carri Hicks [D], Representative Judd Strom [R], and Senator Cody Rogers [R]. Due to a lack of support, missed deadlines, committee action, leadership decisions or veto, this bill failed to pass and will not be signed into law.

➡️Is this something that you think Oklahomans need? How would it have benefited the county you live in?

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Hi, I'm Judy! I love talking about the area I live in and what affects us. Follow me if you'd like more stories like this.