SB718 SD2

SECTION 1. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103D- Hawaii agricultural products. (a) To encourage the purchase and use of Hawaii agricultural products in the food operations of state correctional facilities and state hospitals and healthcare facilities, contracts shall be awarded to the lowest responsible and responsive bidders, with preference given to the agricultural products raised or grown in Hawaii.

(b) The policy board shall adopt rules in accordance with chapter 91 governing preference for Hawaii agricultural products. The rules shall establish percentages of preference and the method of determining the qualifications of various agricultural products for preference.

(c) The state procurement office, with the assistance of the department of agriculture, shall develop a Hawaii agricultural product program that shall require the state purchasing agents of food operations at state correctional facilities and state hospitals and healthcare facilities to:

(1) Apply a preference to the purchase of agricultural products that are raised or grown in Hawaii before purchasing agricultural products that are not raised or grown in Hawaii; and

(2) Set goals to increase in increments the purchase of Hawaii agricultural products from ten per cent per year to a maximum of fifty per cent per year.

(d) The chief procurement officers shall periodically review their specifications to determine whether discrimination against procured Hawaii agricultural products exists and shall revise these specifications to eliminate any discrimination.

(e) This section shall not apply whenever its application will disqualify an agency from receiving federal funds or aid.

(f) For purposes of this section, "Hawaii agricultural products" means any floricultural, horticultural, viticultural, forestry, nut, coffee, dairy, livestock, poultry, bee, farm or plantation products, and fish and aquacultural commodities raised or grown in Hawaii."

SECTION 2. Section 103D-1002, Hawaii Revised Statutes, is amended to read as follows:

"§103D-1002 Hawaii products. (a) A purchasing agency shall review all specifications in a bid or proposal for purchase from the Hawaii products list where these products are available; provided that the products:

(1) Meet the minimum specifications and the selling price f.o.b. jobsite;

(2) Unloaded including applicable general excise tax and use tax does not exceed the lowest delivered price in Hawaii f.o.b. jobsite; and

(3) Unloaded, including applicable general excise tax and use tax, does not exceed the lowest delivered price of a similar non-Hawaii product by more than:

(A) Three per cent where class I Hawaii products are involved;

(B) Five per cent where class II Hawaii products are involved; or

(b) All invitations for bids and requests for proposals shall include a description of the products that are listed in the Hawaii products list established pursuant to this section, and their established classes, which may be used to complete the scope of work specified in the invitation for bids or request for proposals, where the products are available and meet the minimum specifications.

(c) All persons submitting bids or proposals to claim a Hawaii products preference shall designate in their bids which individual product and its price is to be supplied as a Hawaii product.

(d) Where a bid or proposal contains both Hawaii and non-Hawaii products, then for the purpose of selecting the lowest bid or purchase price only, the price bid or offered for a Hawaii product item shall be decreased by subtracting therefrom: three per cent, five per cent, or ten per cent for the class I, class II, or class III Hawaii product items bid or offered, respectively. The lowest total bid or proposal, taking the preference into consideration, shall be awarded the contract unless the bid or offer provides for additional award criteria. The contract amount of any contract awarded, however, shall be the amount of the bid or price offered, exclusive of the preferences.

(e) Upon receipt and approval of application for Hawaii products preference, the administrator shall include within the Hawaii products list, the names of producers and manufacturers in the State who are authorized to supply locally manufactured soil enhancement products to state agencies under subsection (h). The administrator of the state procurement office shall maintain and distribute copies of the list to the purchasing agencies of the various governmental agencies.

(f) This section shall not apply whenever its application will disqualify any governmental agency from receiving federal funds or aid.

(g) Any purchase made or any contract awarded or executed in violation of this section shall be void and no payment shall be made by any purchasing agency on account of the purchase or contract.

(h) For the purposes of this section, "soil enhancement product" means any nonchemical soil preparation, conditioner, or compost mixture designed to supplement aeration or add organic, green waste, or decaying matter to the soil; provided that the term does not include any plant fertilizer intended to stimulate or induce plant growth through chemical means. All state agencies shall include in their solicitations, when required, the soil enhancement products identified on the Hawaii products list pursuant to subsection (e).

(i) To encourage the purchase and use of Hawaii grown flowers, the department of agriculture, with the assistance of the state procurement office, shall develop a Hawaii floriculture product program."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	718
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII