USVI Public Records

Document text

COMMITTEE ON DISASTER RECOVERY, INFRASTRUCTURE AND PLANNING BILL NO. 36-0102 Thirty-Sixth Legislature of the Virgin Islands June 24, 2025 An act amending title 31 Virgin Islands Code, chapter 23 by re-enacting section 236b requiring the use of construction materials manufactured in the Virgin Islands, to the greatest extent practicable, for locally or federally funded contracts with the Government of the Virgin Islands PROPOSED BY: Senators Marvin A. Blyden and A Co-Sponsor: Avery L. Lewis Angel L. Bolques, Jr. WHEREAS, the Virgin Islands, as a territory, requires a pool of local contractors and 1 suppliers in order to maintain capacity and readiness to carry out regular construction and 2 maintenance activities as well as to carry out emergency response and recovery activities in the 3 event of natural disasters; 4 WHEREAS, requiring the utilization of local construction materials in projects funded 5 with local and federal government funds is a mechanism for stimulating the growth and 6 maintenance of such a pool of local contractors and suppliers; 7 WHEREAS, the United States Court of Appeals for the First Circuit, in Antilles Cement 8 Corp. v. Fortuño, 670 F.3d 310 (1st Cir. 2012) upheld the language of a Puerto Rico statute 9 which requires the use of local construction materials in locally and federally funded 10 government contracts. Now, Therefore, 11 Be it enacted by the Legislature of the Virgin Islands: 12 SECTION 1. Title 31 Virgin Islands Code, chapter 23, is amended by re-enacting 13 section 236b as follows: 14 2 “§ 236b. Construction Materials Manufactured in the Virgin Islands 1 (a) Definitions 2 (1) ‘Government’ means the Government of the Virgin Islands, its departments, 3 agencies, instrumentalities. 4 (2) ‘Commissioner’ means the Commissioner of the Virgin Islands Department 5 of Property and Procurement. 6 (3) ‘Construction works’ means construction, reconstruction, repair, 7 conservation or expansion works. 8 (4) ‘Construction materials manufactured in the Virgin Islands’ means goods, 9 articles and materials needed to carry out construction, that are extracted, manufactured, 10 processed or finished in the Virgin Islands. 11 (5) ‘Cement manufactured in the Virgin Islands’ means cement manufactured in 12 the Virgin Islands using raw material from the Virgin Islands except for raw material 13 unavailable in the Virgin Islands for sale in industrial amounts. ‘Cement manufactured 14 in the Virgin Islands’ also includes cement blocks, pre-mixed concrete, concrete mixed 15 at the site and mixture for plastering. 16 (6) ‘Competitive Bidding’ means the competitive bidding required by any 17 department, agency, or instrumentality in charge of awarding bids in the Virgin Islands. 18 (7) ‘Public funds’ means funds or guarantees from the Government of the Virgin 19 Islands or from the United States Government, and those funds provided by federal laws 20 for the purposes of revitalizing the economy. 21 (b) Calls for bids 22 When bids are required for the contracting of a construction project with public 23 funds pursuant to title 31 Virgin Islands Code, part II, chapter 23, section 235, the list of 24 specifications circulated to the bidders shall contain a provision requiring the use of 25 construction materials manufactured in the Virgin Islands in the submitted proposals. 26 3 (c) Contracts without competitive bidding 1 In the cases in which competitive bidding is not required by law and the 2 government contracts for a construction project with public funds, the construction 3 contract shall require the use of construction material manufactured in the Virgin Islands. 4 (d) Construction projects of the Government of the Virgin Islands 5 The Government of the Virgin Islands shall use construction materials 6 manufactured in the Virgin Islands in all of its construction projects. 7 (e) Availability of list 8 The Commissioner shall make a list of construction materials manufactured in the 9 Virgin Islands available to all its departments, agencies, and instrumentalities. 10 (f) Exceptions 11 The provisions of this chapter shall not apply when the Commissioner determines 12 that: 13 (1) The total cost of any of the material used in the construction project is more 14 than fifteen percent higher for that material due to the use of materials manufactured in 15 the Virgin Islands than if the material were purchased outside of the Virgin Islands; 16 (2) The construction materials manufactured in the Virgin Islands are not 17 available in sufficient amounts; 18 (3) The construction materials manufactured in the Virgin Islands are not of a 19 satisfactory quality; 20 (4) The use of construction materials manufactured in the Virgin Islands places 21 a business at a competitive disadvantage by restricting fair trade where a direct 22 competitor exists; or 23 (g) Discretionary authority of the Commissioner 24 If, for reasons beyond the control of the local factory, such as the breakdown of 25 equipment or force majeure, raw material or an intermediate imported product may be 26 4 used for a period not exceeding six months, which may be extended for a further period 1 of six months if the Commissioner so determines. 2 (h) Penalties 3 Every person or entity who violates this chapter shall not be compensated for any 4 work performed and must reimburse the Government of the Virgin Islands for any 5 compensation received and must demolish and remove whatever was built unlawfully, 6 upon request of the Commissioner, and compensate the Government for any damages. 7 (i) Application 8 The provisions of this chapter shall apply to the Government of the Virgin Islands, 9 its departments, agencies, and instrumentalities.” 10 BILL SUMMARY 11 This bill amends title 31 Virgin Islands Code, chapter 23 by re-enacting section 236b 12 relating to construction materials manufactured in the Virgin Islands by requiring the use of 13 locally sourced construction materials, to the greatest extent practicable, on all locally or 14 federally funded contracts with the Government of the Virgin Islands. 15 BR25-0217/June 9, 2025/PFA/Revised June 13, 2025/PFA 16