[Congressional Record Volume 146, Number 25 (Wednesday, March 8, 2000)]
[Senate]
[Pages S1319-S1320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 2216. A bill to direct the Director of the Federal Emergency 
Management Agency to require, as a condition of any financial 
assistance provided by the Agency on a nonemergency basis for a 
construction project, that products used in the project be produced in 
the United States; to the Committee on Environment and Public Works.


  the federal emergency management agency buy american compliance act

  Mr. CAMPBELL. Mr. President, today I am introducing the Federal 
Emergency Management Agency Buy American Compliance Act, legislation 
which would apply the requirements of the Buy American Act to non-
emergency Federal Emergency Management Agency (FEMA) assistance 
payments.
  The Buy American Act was designed to provide a preference to American 
businesses in the federal procurement process. Currently, when FEMA 
awards grants for non-emergency projects, the agency itself adheres to 
the requirements of the Buy American Act. However, when FEMA awards 
taxpayer money to state or local entities in the form grants, those 
entities are not similarly required to comply with the Buy American 
Act's standards. This disparity needs to be changed.

  Mr. President, the Buy American Act's requirements should be applied 
to all FEMA non-emergency grants. It should not make a difference 
whether FEMA is directly spending federal tax dollars or passing those 
same federal tax dollars on to states or local governments for them to 
spend. The Buy American Act's standards should apply to all federal 
dollars distributed by FEMA for non-emergency situations, no matter who 
is spending it. It is only right that we ensure that the American 
people's federal tax dollars are spent according to the Buy American 
Act.
  The Buy American Act is necessary to protect American firms from 
unfair competition from foreign corporations. Many of the nations we 
trade with have significantly lower labor costs than the United States. 
Without the safeguard provided by the Buy American Act foreign 
companies are able to underbid American companies on U.S. government 
contracts.
  It is important to understand the Buy American Act's criteria for 
determining whether a product is foreign or domestic. The nation where 
the corporation is headquartered is irrelevant--the Buy American Act is 
focused upon the origin of the materials used in the construction 
project. In order to be considered an American product, the product in 
question has to fulfill the following two criteria; first; the product 
must be manufactured in the United States, and second; the cost of the 
components manufactured in the United States must constitute over 50 
percent of the cost of all the components used in the item.
  My proposed legislation would stipulate that federal funds 
distributed by FEMA as financial assistance could only be used for 
projects in which the manufactured products are American made, 
according to the criteria established by the Buy American Act. The 
House version of this legislation has been recently introduced by 
Congressman Michael Collins of Georgia.
  Mr. President, it does not make sense that the American people's hard 
earned tax dollars should be allowed to slip through a loophole that 
makes it possible for some entities to avoid the Buy American Act. The 
Buy American Act should apply to all who spend FEMA non-emergency 
funds. When these federal funds are passed down from FEMA to another 
government agency, those other government agencies should also be 
required to abide by the Buy America Act.
  Mr. President, I introduce this legislation in order to ensure there 
is consistency in the law, with regard to FEMA and the provisions of 
the Buy American Act. I hope my colleagues will join me in supporting 
passage of this pro-American measure.
  I ask unanimous consent that the bill I am introducing today be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2216

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Emergency Management 
     Agency Buy American Compliance Act''.

     SEC. 2. APPLICABILITY OF BUY AMERICAN REQUIREMENTS TO FEMA 
                   ASSISTANCE.

       (a) Definitions.--In this Act:
       (1) Agency.--The term ``Agency'' means the Federal 
     Emergency Management Agency.
       (2) Agreement.--The term ``Agreement'' has the meaning 
     given the term in section 308 of the Trade Agreements Act of 
     1979 (19 U.S.C. 2518).
       (3) Director.--The term ``Director'' means the Director of 
     the Federal Emergency Management Agency.
       (4) Domestic product.--The term ``domestic product'' means 
     a product that is mined, produced, or manufactured in the 
     United States.
       (5) Product.--The term ``product'' means--
       (A) steel;
       (B) iron; and
       (C) any other article, material, or supply.
       (b) Requirement To Use Domestic Products.--Except as 
     provided in subsection (c), the Director shall require, as a 
     condition of any financial assistance provided by the Agency 
     on a nonemergency basis for a construction project, that the 
     construction project use only domestic products.
       (c) Waivers.--
       (1) In general.--Except as provided in paragraph (2), the 
     requirements of subsection (b) shall not apply in any case in 
     which the Director determines that--
       (A) the use of a domestic product would be inconsistent 
     with the public interest;
       (B) a domestic product--
       (i) is not produced in a sufficient and reasonably 
     available quantity; or
       (ii) is not of a satisfactory quality; or
       (C) the use of a domestic product would increase the 
     overall cost of the construction project by more than 25 
     percent.
       (2) Limitation on applicability of waivers with respect to 
     products produced in certain foreign countries.--A product of 
     a foreign country shall not be used in a construction project 
     under a waiver granted under paragraph (1) if the Director, 
     in consultation with the United States Trade Representative, 
     determines that--
       (A) the foreign country is a signatory country to the 
     Agreement under which the head of an agency of the United 
     States waived the requirements of this section; and
       (B) the signatory country violated the Agreement under 
     section 305(f)(3)(A) of the Trade Agreements Act of 1979 (19 
     U.S.C. 2515(f)(3)(A)) by discriminating against a domestic 
     product that is covered by the Agreement.
       (d) Calculation of Costs.--For the purposes of subsection 
     (c)(1)(C), any labor cost involved in the final assembly of a 
     domestic product shall not be included in the calculation of 
     the cost of the domestic product.
       (e) State Requirements.--The Director shall not impose any 
     limitation or condition on assistance provided by the Agency 
     that restricts--
       (1) any State from imposing more stringent requirements 
     than this section on the use of articles, materials, and 
     supplies

[[Page S1320]]

     mined, produced, or manufactured in foreign countries in 
     construction projects carried out with Agency assistance; or
       (2) any recipient of Agency assistance from complying with 
     a State requirement described in paragraph (1).
       (f) Report on Waivers.--The Director shall annually submit 
     to Congress a report on the purchases from countries other 
     than the United States that are waived under subsection 
     (c)(1) (including the dollar values of items for which 
     waivers are granted under subsection (c)(1)).
       (g) Intentional Violations.--
       (1) In general.--A person described in paragraph (2) shall 
     be ineligible to enter into any contract or subcontract 
     carried out with financial assistance made available by the 
     Agency in accordance with the debarment, suspension, and 
     ineligibility procedures of subpart 9.4 of chapter 1 of title 
     48, Code of Federal Regulations (or any successor 
     regulation).
       (2) Persons ineligible to receive contract or 
     subcontract.--A person referred to in paragraph (1) is any 
     person that a court of the United States or a Federal agency 
     determines--
       (A) has affixed a label bearing a ``Made in America'' 
     inscription (or any inscription with the same meaning) to any 
     product that is not a domestic product that--
       (i) was used in a construction project to which this 
     section applies; or
       (ii) was sold in or shipped to the United States; or
       (B) has represented that a product that is not a domestic 
     product, that was sold in or shipped to the United States, 
     and that was used in a construction project to which this 
     section applies, was produced in the United States.
                                 ______