HI HB21

Repeals Act 68, Session Laws of Hawaii 2010, which imposed an 80 percent residency requirement on certain procurement contracts to stimulate local employment and construction.

Cites conflicts with federal procurement regulations, specifically 24 CFR 85.36(c)(2), which prohibits geographic preferences in the evaluation of bids or proposals for contracts funded by HUD Community Planning and Development funds.

Notes the U.S. Department of Housing and Urban Development issued an Information Bulletin on September 16, 2010, finding Acts 68 and 17 violate federal procurement regulations and referred the matter to HUD's Office of General Counsel for broader review.

Acknowledges concerns raised during the original legislative process regarding enforcement difficulty, inadequate staffing, and legal validity of the residency requirement law.

Takes effect upon approval.