Bills requiring New Jersey public contracts at the state
and local levels to use U.S.-made goods passed the state Legislature on
Thursday over the objections of business groups, which argued that the measures
would make the state less competitive.
The five bills - one related to state and local entities,
including state colleges, and the others to bistate transportation agencies,
including the Delaware River Port Authority - passed largely along party lines
in the Democratic-controlled Assembly. In the Senate, which had previously
passed some of the bills, the remaining bill Thursday garnered Democratic and
some Republican support.
The package expands requirements for U.S.-made goods in
certain public contracts.
Senate President Stephen Sweeney (D., Gloucester), a
sponsor of the bills, said the new requirements would be similar to federal
standards and would promote domestic job growth.
"It's about manufacturing in the United
States," said Sweeney, a union ironworker.
Sen. Kevin O'Toole (R., Passaic), who also sponsored the
bills, said the measures were an effort to "encourage and promote American
business."
But opponents, including other Republican lawmakers and
business groups in and outside New Jersey, said the requirements would be too
onerous. The bill applying to contracts with state and local entities wouldn't
just require that a product be made in the United States but that the majority
of its components are made here.
With many U.S. goods including some foreign-made
components, the requirement "transcends a lot of different
companies," said Mike Egenton, senior vice president for government
relations for the New Jersey Chamber of Commerce. "We're a global
economy."
The chamber has been getting calls from the Canadian
consulate, Egenton said. Others opposed included the New Jersey Business and
Industry Association and the Washington-based Organization for International
Investment, whose membership consists of U.S. subsidiaries of companies
headquartered abroad.
Nancy McLernon, the organization's president and CEO,
said member companies had 228,000 workers in New Jersey, one-third in
manufacturing. "As states or countries become isolationist, it only serves
to hurt the local economy," she said.
Assembly Minority Leader Jon Bramnick (R., Union), joined
by other Republicans from the Assembly, criticized the legislation at a news
conference Thursday, saying it "sends a very bad message to
businesses."
"I have no doubt part of the reason you pass this
bill is political appearances and special interests," he said, also
mentioning "a race in 2017 for governor." Sweeney is seen as a likely
candidate.
Asked about Bramnick's assertions of special interests,
Sweeney said, "That's ridiculous."
"You know why I support it? I've watched products
come to this country," he said. "They say that you can't manufacture
steel here anymore, right? You can, but the problem is, the steel is being
manufactured in other countries, being subsidized by those countries."
Assembly Republicans said the bills would result in
increased costs to taxpayers. In the bill pertaining to contracts for state and
local entities, waivers could be granted if the cost of a U.S.-made product was
more than 20 percent above a foreign-made alternative.
Sweeney said there were costs of not using U.S.-made
products: "Costs go up when you're competing against companies that are
subsidizing products. You're getting a cheaper price on the product but you're
losing jobs, which harms the economy. Which drives costs of government services
to the families," he said.
O'Toole said lawmakers had responded to concerns of
businesses by carving out exceptions, including for pharmaceuticals and
technology.
"We're trying to do something to stimulate the
economy," he said.
Source: Philly.com
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