HB1676 HD1.DOC

SECTION 1. The purpose of this Act is to establish a preference for the procurement of iron, steel, and manufactured goods produced in the United States in all contracts for the construction, reconstruction, repair, improvement, or maintenance of public works in the State.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII buy american act

§ -1 Short title. This chapter shall be known and may be cited as the Hawaii Buy American Act.

§ -2 Definitions. For the purposes of this chapter, unless the context otherwise requires:

"Manufactured" means:

(1) In the case of an iron or steel product, all manufacturing shall take place in the United States, except metallurgical processes involving the refinement of steel additives; and

(2) In the case of a manufactured good, a good shall be considered manufactured in the United States if:

(A) All the manufacturing processes for the product take place in the United States; and

(B) All of the components of the product originated in the United States; provided that a component shall be considered to have originated in the United States if all the manufacturing processes of the component take place in the United States, regardless of the origin of its subcomponents.

"Public agency" means the departments, agencies, boards, commissions, and institutions of the State, and all units and political subdivisions thereof. The term also includes the judiciary and the office of Hawaiian affairs.

"Public building" and "public work" mean any structure, building, highway, waterway, street, bridge, transit system, airport, school, or other betterment, work, or improvement, whether of a permanent or temporary nature and whether for governmental or proprietary use. The terms include but shall not be limited to any railway, street railway, subway, elevated and monorail passenger or passenger and rail rolling stock including self-propelled and gallery cars, locomotives, passenger buses and wires, poles and equipment for the electrification of any of the rails, tracks and roadbeds, guideways, elevated structures, buildings, stations, terminals, docks, shelters, and parking areas for use in connection with a transit system, and repairs to any of the foregoing.

§ -3 Use of materials manufactured in the United States. (a) Notwithstanding any other provision of law, each contract for the construction, reconstruction, alteration, repair, improvement, or maintenance of a public building or public work entered into by a public agency shall contain a provision that the iron, steel, and manufactured goods used or supplied in the performance of the contract or any subcontract thereto shall be manufactured in the United States.

(b) Subsection (a) shall not apply where the director or department head of a public agency finds that:

(1) Its application would be inconsistent with the public interest;

(2) Such materials and products are not produced in the United States in quantities that are:

(A) Sufficient;

(B) Reasonably available; and

(3) Inclusion of domestic material will increase the cost of the overall project contract by more than twenty-five per cent.

(c) If the director or department head of a public agency determines that it is necessary to waive the application of subsection (a), based upon a finding under subsection (b), the director or department head of the public agency, before the date on which the finding takes effect:

(1) Shall publish a detailed written justification as to why the waiver is needed according to the process outlined in section 1-28.5;

(2) Shall provide notice of the finding and an opportunity for public comment on the finding for a reasonable period of time not to exceed fifteen days; and

(3) Shall consider all comments received during the comment period in evaluating the waiver request.

(d) It shall be a violation of this chapter for any person to:

(1) Affix a label bearing a "Made in America" inscription, or any inscription with the same meaning, to any product used in projects to which this chapter applies, sold in or shipped to the United States, that was not manufactured in the United States; or

(2) Represent that any product used in projects to which this chapter applies, sold in or shipped to the United States, was manufactured in the United States; provided that the product was not actually produced in the United States.

Any person determined to have committed a violation of this subsection by a court or federal or state agency, shall be ineligible to receive any contract or subcontract with the State or any political subdivision of the State."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. This Act shall take effect on July 1, 2112.

HOUSE OF REPRESENTATIVES	H.B. NO.	1676
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 1
STATE OF HAWAII