REPORT TITLE:
Hawaii Products Purchases


DESCRIPTION:
Requires state facilities to purchase locally grown produce;
establishes state policy to procure local products and services. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           140
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HAWAII PROCUREMENT CODE. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 103D-1001, Hawaii Revised Statutes, is
 
 2 amended by adding a new definition to be appropriately inserted
 
 3 and to read as follows:
 
 4      "Hawaii services" means services, as defined in section
 
 5 103D-104, that are provided by a person, agency, corporation, or
 
 6 other entity with its principal place of business or ancillary
 
 7 headquarters located in the State."
 
 8      SECTION 2.  Section 103D-1002, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§103D-1002  Hawaii products[.] and services.  (a) It shall
 
11 be the policy of this State to encourage the purchase of Hawaii
 
12 products and Hawaii services, as defined in section 103D-1001, by
 
13 all governmental bodies in procurement under this chapter.
 
14      [(a)] (b)  A purchasing agency shall review all
 
15 specifications in a bid or proposal for purchase from the Hawaii
 
16 products list and Hawaii services list where these products and
 
17 services are available; provided in the case of products that the
 
18 products:
 
19      (1)  Meet the minimum specifications and the selling price
 

 
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 1           f.o.b. jobsite;
 
 2      (2)  Unloaded, including applicable general excise tax and
 
 3           use tax, does not exceed the lowest delivered price in
 
 4           Hawaii f.o.b. jobsite; and
 
 5      (3)  Unloaded, including applicable general excise tax and
 
 6           use tax, does not exceed the lowest delivered price of
 
 7           a similar non-Hawaii product by more than:
 
 8           (A)  Three per cent where class I Hawaii products are
 
 9                involved;
 
10           (B)  Five per cent where class II Hawaii products are
 
11                involved; or
 
12           (C)  Ten per cent where class III Hawaii products are
 
13                involved.
 
14      [(b)] (c)  All invitations for bids and requests for
 
15 proposals shall include a description of the products that are
 
16 listed in the Hawaii products list established pursuant to this
 
17 section[,] and their established classes[,] or the Hawaii
 
18 services list established pursuant to this section, as
 
19 appropriate, which may be used to complete the scope of work
 
20 specified in the invitation for bids or request for proposals,
 
21 where the products or services are available and meet the minimum
 
22 specifications.
 
23      [(c)] (d)  All persons submitting bids or proposals to claim
 

 
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 1 a Hawaii products or Hawaii services preference shall designate
 
 2 in their bids which individual product or service and its price
 
 3 is to be supplied as a Hawaii product[.] or service.
 
 4      [(d)  Where] (e) For purposes of a product, if a bid or
 
 5 proposal contains both Hawaii and non-Hawaii products, then for
 
 6 the purpose of selecting the lowest bid or purchase price only,
 
 7 the price bid or offered for a Hawaii product item shall be
 
 8 decreased by subtracting therefrom:  three per cent, five per
 
 9 cent, or ten per cent for the class I, class II, or class III
 
10 Hawaii product items bid or offered, respectively.  The lowest
 
11 total bid or proposal, taking the preference into consideration,
 
12 shall be awarded the contract unless the bid or offer provides
 
13 for additional award criteria.  The contract amount of any
 
14 contract awarded, however, shall be the amount of the bid or
 
15 price offered, exclusive of the preferences.
 
16      For purposes of a service, a purchasing agency shall award
 
17 the contract to a person or entity that qualifies for a
 
18 preference under subsection (g).
 
19      [(e)] (f)  Upon receipt and approval of application for
 
20 Hawaii products preference, the administrator shall include
 
21 within the Hawaii products list, the names of producers and
 
22 manufacturers in the State who are authorized to supply locally
 
23 manufactured soil enhancement products to state agencies under
 

 
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 1 subsection [(h).] (k).  The administrator of the state
 
 2 procurement office shall maintain and distribute copies of the
 
 3 list to the purchasing agencies of the various governmental
 
 4 agencies.
 
 5      (g)  Upon receipt and approval of application for Hawaii
 
 6 services preference, the administrator shall include within the
 
 7 Hawaii services list, the names of providers of services who meet
 
 8 the two-year tax filing requirements of section 103D-1007(c)
 
 9 prior to submitting the application or renewal.  Applications
 
10 shall be renewed every four years.
 
11      [(f)] (h)  This section shall not apply whenever its
 
12 application will disqualify any governmental agency from
 
13 receiving federal funds or aid.
 
14      [(g)] (i)  Any purchase made or any contract awarded or
 
15 executed in violation of this section shall be void and no
 
16 payment shall be made by any purchasing agency on account of the
 
17 purchase or contract.
 
18      (j)  Notwithstanding any law to the contrary, procurement of
 
19 Hawaii grown fruits and vegetables, where available, by public
 
20 school cafeterias, hospitals, prisons, and detention facilities
 
21 shall be required, regardless of the procurement amount.
 
22      [(h)] (k)  For the purposes of this section, "soil
 
23 enhancement product" means any nonchemical soil preparation,
 

 
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                                     S.B. NO.           140
                                                        
                                                        

 
 1 conditioner, or compost mixture designed to supplement aeration
 
 2 or add organic, green waste, or decaying matter to the soil;
 
 3 provided that the term does not include any plant fertilizer
 
 4 intended to stimulate or induce plant growth through chemical
 
 5 means.  All state agencies shall include in their solicitations,
 
 6 when required, the soil enhancement products identified on the
 
 7 Hawaii products list pursuant to subsection (e)."
 
 8      SECTION 3.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 4.  This Act shall take effect upon its approval.
 
11 
 
12                           INTRODUCED BY:  _______________________