HI HB21

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

Act 68 violated federal Department of Housing and Urban Development (HUD) procurement regulations under 24 CFR 85.36(c)(2), which prohibit in-state or local geography preferences in bid evaluations.

HUD issued an Information Bulletin on September 16, 2010, informing the State and counties that Act 68 and Act 17 preferences were prohibited for community planning and development funded contracts, with potential violations of additional federal programs under review.

The legislature finds repeal necessary due to growing conflicts with federal law, despite Act 68's savings clause language.

Effective upon approval.