REPORT TITLE:
Procurement


DESCRIPTION:
This bill prohibits the state from purchasing foreign "slave
labor" trade.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2322
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PROCUREMENT. 


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

 1      SECTION 1.  Chapter 103D, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:  
 
 4      "§103D   - Prohibition against forced labor.  (a) Every
 
 5 contract entered into by any state agency for the procurement of
 
 6 equipment, materials, goods, or supplies shall contain a
 
 7 statement in which the contractor attests that no foreign-made
 
 8 equipment, materials, goods, or supplies, furnished to the state
 
 9 pursuant to the contract, have been produced in whole or in part
 
10 by forced labor, convict labor, or indentured labor under penal
 
11 sanction.
 
12      (b) Any contractor contracting with the state who
 
13 negligently furnishes foreign-made equipment, materials, goods,
 
14 or supplies produced in whole or in part by forced labor, convict
 
15 labor, or indentured labor under penal sanction, after providing
 
16 a statement pursuant to subsection (a) of this section, shall,
 
17 subject to subsection (e) of this section, have the contract
 
18 voided, shall be assessed a penalty of one thousand dollars, or
 

 
Page 2                                                     
                                     S.B. NO.           2322
                                                        
                                                        

 
 1 an amount equaling ten percent of the value of the equipment,
 
 2 materials, or supplies, whichever is greater, and shall be
 
 3 prohibited from bidding for a period not to exceed one hundred
 
 4 and eighty days.
 
 5      (c) Any contractor contracting with the state who was
 
 6 previously sanctioned for violating subsection (b) of this
 
 7 section, or who knowingly or recklessly furnishes foreign-made
 
 8 equipment, materials, goods, or supplies produced in whole or in
 
 9 part by forced labor, convict labor, or indentured labor under
 
10 penal sanction, after providing a statement pursuant to
 
11 subsection (a) of this section, shall, subject to subsection (e)
 
12 of this section, have the contract voided, shall be assessed a
 
13 penalty of the entire value of the contract, or an amount equal
 
14 to twenty percent of the value of the equipment, materials, or
 
15 supplies, whichever is greater, and shall be prohibited from
 
16 bidding for a period not to exceed three hundred and sixty days,
 
17 but no less than one hundred and eighty days. Any contractor
 
18 sanctioned for violating subsection (c) shall be liable for all
 
19 costs and attorneys' fees incurred in prosecuting the subsection
 
20 (c) violation, and shall be subject to any and all civil
 
21 statutory and common law claims and remedies.
 

 
 
 
 
 
Page 3                                                     
                                     S.B. NO.           2322
                                                        
                                                        

 
 1      (d) Any contractor contracting with the state and previously
 
 2 sanctioned pursuant to subsection (c) of this section who
 
 3 negligently, knowingly, or recklessly furnishes foreign-made
 
 4 equipment, materials, goods, or supplies produced in whole or in
 
 5 part by forced labor, convict labor, or indentured labor under
 
 6 penal sanction, shall be subject to all penalties and sanctions
 
 7 set forth in subsection (c) of this section. The contractor also
 
 8 shall be barred from bidding on state contracts for a period of
 
 9 not less than three years from the date of the subsection (d)
 
10 violation.
 
11      (e) After discovering a potential violation of this section,
 
12 the contracting agency shall provide the contractor with
 
13 procedural due process, via notice and an opportunity to be
 
14 heard, prior to issuing its ultimate determination.  When
 
15 determining whether a violation occurred, the agency shall
 
16 consider any measures the contractor took to ensure compliance
 
17 with this section.  The agency may only issue sanctions if it
 
18 determines that the contractor failed to act in good faith, and
 
19 had knowledge, or would have had reason to know, after reasonable
 
20 inquiry, of the violation.  The contractor bears the burden of
 
21 proving no violation.
 

 
 
 
 
 
Page 4                                                     
                                     S.B. NO.           
                                                        
                                                        

 
 1      (f) For purposes of this section, the term "forced labor"
 
 2 shall have the same meaning as in section 1307 of Title 19 of the
 
 3 United States Code."
 
 4      SECTION 2.  New statutory material is underscored.
 
 5      SECTION 3.  This Act shall take effect upon approval.
 
 6 
 
 7                           INTRODUCED BY:  _______________________