STAND. COM. REP. NO. 67

Honolulu, Hawaii

RE:    S.B. No. 715

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Tourism and Government Operations, to which was referred S.B. No. 715 entitled:

"A BILL FOR AN ACT RELATING TO THE PROCUREMENT CODE,"

beg leave to report as follows:

     The purpose of this measure is to promote Hawaii's agricultural industry by encouraging the purchase and use of Hawaii agricultural products. 

     More specifically, this measure adds a new section to the State Procurement Code under chapter 103D, Hawaii Revised Statutes, to provide incentives for food operations of state correctional facilities and state hospitals and healthcare facilities to award contracts to the lowest responsible and responsive bidder with preferences given to agricultural products raised or grown in Hawaii.

     Testimony in support of this measure was submitted by the Department of Agriculture, the Department of Accounting and General Services, the State Procurement Office, the Hawaii Farm Bureau Federation, the Maui County Farm Bureau, the Hawaii Agriculture Research Center, and the Maui Economic Development Board, Inc.  A private individual submitted comments.

     Hawaii heavily depends on the importation of food and goods.  It is becoming increasingly more difficult for Hawaii agricultural producers to compete with foreign and out-of-state agricultural producers because Hawaii agricultural producers are faced with high labor costs, land values, and transportation costs.  As a result, there is much debate on the issue of Hawaii's food supply security and sustainability.  Your Committees find that state agencies should assist in promoting and maintaining of Hawaii's agricultural industry by providing a preference within the State Procurement Code for agricultural products raised or grown in Hawaii.  Your Committees believe that establishing a preference program within the State Procurement Code for agricultural products raised and grown in Hawaii fulfills the intent of this measure, which is to promote and protect Hawaii's agricultural industry, and enable a more viable food security future for Hawaii.

     Your Committees have amended this measure by:

     (1)  Adopting the suggested amendments from the State Procurement Office by deleting section 1 of this measure and replacing it with language that:

          (A)  Adds a new definition for "Hawaii agricultural products" to section 103D-1001, Hawaii Revised Statutes; and

          (B)  Amends section 103D-1002, Hawaii Revised Statutes, by adding a new subsection for the purpose of encouraging the purchase and use of Hawaii agricultural products in food operations of state correctional facilities and state hospitals and healthcare facilities, and requiring the Department of Agriculture, with the assistance of the State Procurement Office, to develop a Hawaii agricultural product program; and

     (2)  Making technical, nonsubstantive amendments for the purposes of style and clarity.

     As affirmed by the records of votes of the members of your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 715, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 715, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Agriculture, and Hawaiian Affairs and Tourism and Government Operations,

____________________________ CLARENCE K. NISHIHARA, Chair

____________________________ RUSSELL S. KOKUBUN, Chair