STAND. COM. REP. NO. 68

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 718

       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. 718 entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this measure is to support the floriculture industry in Hawaii by encouraging the purchase of flower lei made only with flowers grown in Hawaii.

 

     More specifically, this measure adds a new section to the State Procurement Code under chapter 103D, Hawaii Revised Statutes, to provide incentives for state agencies to award contracts to the lowest responsible and responsive bidder with preferences given to flower lei made only with flowers 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, Green Point Nurseries, the Maui Flower Growers Association, Paradise Flower Farms, and a private individual.

 

     Hawaii is known for its beautiful flowers and lei.  It is common for a lei to given to someone for a special occasion or as a symbolic gesture of aloha.  Ironically, these lei are often times made with flowers that are imported from a foreign county where they are grown at a fraction of the cost of locally grown flowers and lei.  Hawaii floricultural producers are faced with high labor costs, land values, and transportation costs, which makes it difficult for local floriculture producers to compete with foreign floricultural competitors.  Your Committees find that state agencies should assist in promoting and maintaining Hawaii's floricultural industry by providing a preference within the State Procurement Code for floricultural products raised or grown in Hawaii.

 

     The State Procurement Office presented testimony in support of this measure with suggested amendments for the intent of this measure to be properly reflected in and consistent with the State Procurement Code.  The State Procurement Office indicated to your Committees that the definition for "Hawaii products" under section 103D‑1001, Hawaii Revised Statutes, includes and applies to Hawaii-grown flowers.  Thus, the Hawaii product preference provisions under section 103D-1002, Hawaii Revised Statutes, also apply to Hawaii-grown flowers.  The State Procurement Office, however, pointed out that flower lei are considered small purchases and are currently not included within the scope of the State Procurement Code.  The Office indicated that it will need to adopt rules to establish a floricultural product program to address the intent of this measure, which the Office is authorized to do under section 103D-1002, Hawaii Revised Statutes.

 

     Accordingly, 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 amends section 103D‑1002, Hawaii Revised Statutes, by adding a new subsection for the purpose of encouraging the purchase and use of Hawaii grown flowers by requiring the Department of Agriculture, with the assistance of the State Procurement Office, to develop a Hawaii floriculture program; and

 

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

 

     Your Committees believe that the amendments made to this measure fulfill the intent of this measure, which is to promote and protect Hawaii's floricultural industry.

 

     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. 718, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 718, 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