Subcommittee approves HB 777 substitute tying state contracts to Merchant Marine Act compliance

Delegate Hayes presented HB 777 and a substitute that preserves a provision added to the Virginia Public Procurement Act addressing procurement of imported goods and the use of privately owned commercial vessels. Committee counsel explained the substituted language defines "privately owned commercial vessel" and directs a state agency that enters a public contract for goods exceeding $10,000 to include contract provisions requiring the contractor to comply with applicable provisions of the Merchant Marine Act regarding use of privately owned commercial vessels for transporting those goods.

The sponsor and witnesses said the measure aligns with a bipartisan national effort to grow U.S.-flag cargo and would benefit the Port of Virginia and the U.S. merchant marine fleet. Dustin Reinhardt, representing a U.S.-flag vessel company headquartered in Virginia, testified in support, saying HB 777 is "a step in the right direction to federally comply with the US Cargo Fleet Act." The subcommittee moved and voted to report HB 777 with the substitute to Appropriations; the clerk closed the roll and the bill was recommended to Appropriations on a vote of 9 to 0.

The substitute removes the Commonwealth’s enforcement responsibility while preserving contract clauses that notify contractors of federal Merchant Marine Act requirements; supporters said the approach reminds contractors of federal compliance obligations and may increase U.S.-flag cargo calling in Virginia ports.