Report Title:

Procurement; Construction

 

Description:

Establishes a procurement preference, applicable to construction contracts to be performed in counties with a population of 250,000 or less, for firms that are headquartered in the county where the construction project is to take place.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

138

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to procurement.

 

 

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

 


SECTION 1.  The legislature finds that procurement for construction projects on the neighbor islands presents unique problems for procuring agencies.  State agencies have a vested interest in achieving the most cost-effective means of completing construction projects.  However, many projects that require construction or repair of crucial infrastructure, such as roadways or damaged buildings, require agencies to be able to award contracts in an expeditious manner to avoid disruptions in essential services to residents.  The legislature finds that, in many cases, the most cost-effective means of completing construction projects on the neighbor islands is through the use of contractors and construction firms that are based on those islands, as they already have the heavy equipment and personnel on site.  In addition, they frequently have existing supply chains that do not require the acquisition or transport of large amounts of construction materials.  The legislature finds that a procurement preference for local firms in the award of construction contracts on neighbor islands would provide cost-effectiveness, expediency, and improved value for the residents of those islands and the State as a whole.

The purpose of this Act is to create a procurement preference, applicable to construction contracts to be performed in counties with a population of two hundred fifty thousand or less, for firms that are headquartered in the county where the construction project is to take place.

     SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part X to be appropriately designated and to read as follows:

     "§103D-    Construction preference.  (a)  In any expenditure of public funds by a state or county agency for construction in a county with a population of less than two hundred fifty thousand, the use of construction businesses headquartered in that county shall be preferred.

(b)  The policy board shall adopt rules in accordance with chapter 91 for the purposes of this section.  The rules shall establish percentages of preference and the method for determining qualifications for the preference."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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