HB 1540 — An Act amending Title 62 (Procurement) of the Pennsylvania Consolidated Statutes, establishing the Buy America, Buy Union Grant Program and the Buy America, Buy Union Grant Fund; and imposing duties on the Department of Community and Economic Development.

PRINTER'S NO.   1811

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1540
                                                 Session of
                                                   2025

     INTRODUCED BY SIEGEL, McNEILL, SANCHEZ, MADDEN, MALAGARI,
        SCHLOSSBERG, PIELLI, GIRAL, KHAN, CERRATO, BURGOS, WAXMAN,
        DOUGHERTY, BOROWSKI, NEILSON, DEASY, GREEN, GOUGHNOUR AND
        SCHWEYER, JUNE 2, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 3, 2025


                                      AN ACT
 1   Amending Title 62 (Procurement) of the Pennsylvania Consolidated
 2      Statutes, establishing the Buy America, Buy Union Grant
 3      Program and the Buy America, Buy Union Grant Fund; and
 4      imposing duties on the Department of Community and Economic
 5      Development.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.     Title 62 of the Pennsylvania Consolidated
 9   Statutes is amended by adding a chapter to read:
10                                 CHAPTER 47
11                       BUY AMERICA, BUY UNION GRANTS
12   Subchapter
13      A.   Preliminary Provisions
14      B.   Program
15      C.   Fund
16      D.   Miscellaneous Provisions
17                                SUBCHAPTER A
18                           PRELIMINARY PROVISIONS
 1   Sec.
 2   4701.   Scope of chapter.
 3   4702.   Definitions.
 4   § 4701.    Scope of chapter.
 5      This chapter relates to the award of Buy America, Buy Union
 6   grants.
 7   § 4702.    Definitions.
 8      The following words and phrases when used in this chapter
 9   shall have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Authority."      As defined in 53 Pa.C.S. § 5602 (relating to
12   definitions).
13      "Bus."       As defined in 75 Pa.C.S. § 102 (relating to
14   definitions).
15      "Business entity."       A corporation, partnership, limited
16   liability company, business trust, association, estate, trust,
17   foundation or similar entity.
18      "Department."      The Department of Community and Economic
19   Development of the Commonwealth.
20      "Fund."      The Buy America, Buy Union Grant Fund established
21   under section 4721 (relating to establishment of fund).
22      "Labor organization."       As follows:
23             (1)    Except as provided in paragraph (2), as defined in
24      section 3(f) of the act of June 1, 1937 (P.L.1168, No.294),
25      known as the Pennsylvania Labor Relations Act.
26             (2)    The term does not include an organization in which
27      more than one-half of the employees of the organization are
28      owners, officers or executives of the organization.
29      "Passenger car."       As defined in 75 Pa.C.S. § 102.
30      "Procure."      As follows:

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 1             (1)   To acquire by purchase, lease or rent.
 2             (2)   The term does not include acquiring by lease or rent
 3      if the term of the lease or rental is less than one month.
 4      "Program."     The Buy America, Buy Union Grant Program
 5   established under section 4711 (relating to establishment of
 6   program).
 7      "School bus."     As defined in 75 Pa.C.S. § 102.
 8      "School vehicle."       As defined in 75 Pa.C.S. § 102.
 9      "Truck."     As defined in 75 Pa.C.S. § 102.
10      "Union-made."     Assembled, as part of the final step in the
11   manufacturing process to create a finished product, at a plant,
12   factory or other site of a business entity, which is:
13             (1)   located in the United States; and
14             (2)   operating under a bona fide collective bargaining
15      agreement negotiated by a bona fide labor organization.
16      "Vehicle."     Any of the following:
17             (1)   A bus.
18             (2)   A passenger car.
19             (3)   A school bus.
20             (4)   A school vehicle.
21             (5)   A truck.
22                                   SUBCHAPTER B
23                                      PROGRAM
24   Sec.
25   4711.   Establishment of program.
26   4712.   Operation of program.
27   4713.   Application.
28   4714.   Limitations.
29   4715.   Determination.
30   § 4711.    Establishment of program.

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 1      The Buy America, Buy Union Grant Program is established
 2   within the department.
 3   § 4712.    Operation of program.
 4      The department shall implement and administer the program for
 5   the purpose of providing grants in accordance with this chapter
 6   to reimburse political subdivisions and authorities that procure
 7   vehicles which are union-made.
 8   § 4713.    Application.
 9      (a)    Form.--
10             (1)   The department shall develop an application form for
11      political subdivisions and authorities to use to seek a grant
12      under the program.
13             (2)   The application form under paragraph (1) may specify
14      the vehicles that would be eligible for a grant under the
15      program.
16             (3)   The department shall post the application form under
17      paragraph (1) on the publicly accessible Internet website of
18      the department.
19      (b)    Contents.--An applicant seeking a grant under the
20   program shall provide the following information to the
21   department:
22             (1)   The name and contact information of the applicant.
23             (2)   The amount of the grant requested.
24             (3)   The number of vehicles which are union-made for
25      which a grant under the program is sought, including a
26      description of the vehicles.
27             (4)   Evidence of procurement and union-made status.
28             (5)   Any other information deemed necessary by the
29      department.
30      (c)    Submittal.--The department shall prescribe the process

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 1   to submit completed application forms for consideration,
 2   including deadlines for submittal.
 3   § 4714.    Limitations.
 4      (a)    Amount of grants.--The amount of a grant under the
 5   program for an applicant shall be limited to not more than 20%
 6   of the costs incurred by the applicant regarding the procurement
 7   of the vehicles which are union-made.
 8      (b)    Distribution of grants.--Grants under the program shall
 9   be disbursed on a first-come, first-served basis determined by
10   the department and until all money in the fund is exhausted.
11   § 4715.    Determination.
12      (a)    Review.--The department shall review each completed
13   application for a grant under the program and shall determine
14   whether to award the grant.
15      (b)    Notice.--The department shall provide notice of the
16   determination under subsection (a). The following shall apply
17   regarding the notice:
18             (1)   If the department awards the grant, the department
19      shall include the amount of the grant and any conditions on
20      the use of the grant.
21             (2)   If the department does not award the grant in whole
22      or in part, the department shall include the reasons for the
23      full or partial denial.
24                                 SUBCHAPTER C
25                                     FUND
26   Sec.
27   4721.    Establishment of fund.
28   4722.    Operation of fund.
29   4723.    Funding source.
30   § 4721.    Establishment of fund.

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 1      The Buy America, Buy Union Grant Fund is established in the
 2   State Treasury to carry out the purposes of the program.
 3   § 4722.    Operation of fund.
 4      (a)    Appropriation.--All money deposited into the fund and
 5   interest and other earnings on the money in the fund are
 6   appropriated to the department on a continuing basis to award
 7   grants under the program.
 8      (b)    End of fiscal year.--Any money remaining in the fund at
 9   the end of each fiscal year, including interest and other
10   earnings, shall not revert to the General Fund but shall remain
11   in the fund.
12   § 4723.    Funding source.
13      The department may accept funding for the program, including
14   money appropriated by the General Assembly, Federal money,
15   grants, donations, gifts and other payments from any source,
16   which shall be deposited into the fund.
17                                 SUBCHAPTER D
18                           MISCELLANEOUS PROVISIONS
19   Sec.
20   4731.    Reports.
21   4732.    Costs.
22   4733.    Guidelines.
23   § 4731.    Reports.
24      (a)    Annual reports required.--No later than September 1,
25   2026, and each September 1 thereafter, the department shall
26   issue an annual report detailing the operation of the program
27   and fund during the preceding year.
28      (b)    Contents.--Each annual report under this section must
29   include the following:
30             (1)   The number of applicants that sought a grant under

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 1      the program, including the total amount of the grants sought
 2      under the program.
 3             (2)   The number of applicants that received a grant under
 4      the program, including the amount of the grant that each
 5      applicant received under the program.
 6             (3)   The number of applicants that were denied, in whole
 7      or in part, a grant under the program, including the reasons
 8      for the full or partial denial.
 9             (4)   The money remaining in the fund.
10             (5)   Any other information deemed necessary by the
11      department.
12      (c)     Transmittal.--Each annual report under this section
13   shall be transmitted to the following:
14             (1)   The Governor.
15             (2)   The chairperson and minority chairperson of the
16      Appropriations Committee of the Senate.
17             (3)   The chairperson and minority chairperson of the
18      Appropriations Committee of the House of Representatives.
19      (d)     Posting.--The department shall post each annual report
20   under this section on the publicly accessible Internet website
21   of the department.
22   § 4732.    Costs.
23      The department shall use money appropriated by the General
24   Assembly for the purpose of implementing and administering the
25   program.
26   § 4733.    Guidelines.
27      The department shall develop and periodically review
28   guidelines necessary to implement and administer the provisions
29   of this chapter.
30      Section 2.       This act shall take effect in 60 days.

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