Bill Text: HI HB21 | 2011 | Regular Session | Introduced
Bill Title: Procurement
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-02-22 - (H) Re-referred to ERB/LAB, JUD, FIN, referral sheet 26 [HB21 Detail]
Download: Hawaii-2011-HB21-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
21 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the repeal of act 68, session laws of hawaii 2010.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Act 68, Session Laws of Hawaii 2010 was intended to stimulate the local economy by imposing an eighty per cent residency requirement on a number of different types of procurement contracts, although not for professional services or small purchases. By imposing this requirement, it was thought that local construction firms would be forced to create local jobs.
During the legislative process, despite everyone's desire to boost local employment, concerns were publicly raised about the bill, including the difficulty in enforcing the law, the lack of staffing to enforce the law, and the legality of this type of law. These concerns were repeated when the Governor vetoed the bill. Despite these concerns, the legislature overrode the veto and passed Act 68, Session Laws of Hawaii 2010 into law.
On September 16th, 2010, the United States Department of Housing and Urban Development (HUD) issued an Information Bulletin (CPD-HI-10-01) for all Community Planning and Development consolidated plan contacts within the jurisdiction of the Honolulu Field Office. The information bulletin informed the State and each of the counties that the "imposition of Act 68 and Act 17 [Session Laws of Hawaii 2010 and Special Session Laws of Hawaii 2009, respectively] preferences is in violation of HUD procurement regulations. Procurement requirements set forth at 24 CFR 85.36(c)(2) prohibit 'the use of statutorily or administratively imposed in-State or local geography preferences in the evaluation of bids or proposals.'" The information bulletin went on to inform the State and each of the counties that the use of Act 68 and Act 17 to procurement contracts funded by community planning and development funds were prohibited, and that HUD forwarded the matter to their Office of General Counsel for a determination as to whether Act 68 and Act 17 affected additional programs. In other words, Act 68, Session Laws of Hawaii 2010, violates some federal laws and, depending on the findings of HUD's Office of General Counsel, may violate even more federal laws.
In light of the growing conflict with federal laws, despite the language of savings clause of Act 68, Session Laws of Hawaii 2010, the legislature finds it in the best interests of the State to repeal Act 68, Session Laws of Hawaii 2010.
SECTION 2. Act 68, Session Laws of Hawaii 2010, is repealed.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Procurement
Description:
Repeals Act 68, Session Laws of Hawaii 2010
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
