HOUSE OF REPRESENTATIVES

H.B. NO.

1676

TWENTY-SIXTH LEGISLATURE, 2012

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to public works.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     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

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.  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, including local school districts.  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 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 American materials.  (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

         (C)  Of a satisfactory quality; or

     (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)  Pursuant to section 1-28.5(b), shall publish a detailed written justification as to why the waiver is needed;

     (2)  Shall consider all comments received during the comment period in evaluating the waiver request; and

     (3)  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.

     (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 under paragraph (1) or (2), 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.

     (e)  Subsection (b) shall not apply to products produced in a foreign country; provided that the executive head of a public agency, in consultation with the United States Trade Representative, determines that:

     (1)  A foreign country is a party to an agreement with the United States and, pursuant to that agreement, the head of an agency of the United States has waived the requirements of this chapter; and

     (2)  The foreign country has violated the terms of the agreement by discriminating against products covered by this chapter that are produced in the United States and are covered by the agreement."

     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, 2012.

 

INTRODUCED BY:

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Report Title:

Buy American Act

 

Description:

Establishes a preference for the use of American iron, steel, and manufactured goods in the construction, alteration, or repair of public works.

 

 

 

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