PART X. 
PREFERENCES



 



§103D-1001  Definitions.  As used in
this part, unless the context clearly requires otherwise:



"Direct labor" means all work
required for preparation, processing, or packing of goods or performance of
services, but not work relating to supervision, administration, inspection, or
shipping.



"Fair market price" means the price
of a product or service paid by a willing buyer to a willing seller, that is
reasonably comparable to prices on the open market.



"Hawaii input" means the part of the
cost of a product that is attributable to production, manufacturing, or other
expenses arising within the State.  "Hawaii input" includes but is
not limited to:



(1)  The cost to mine, excavate, produce, manufacture,
raise, or grow the materials in Hawaii;



(2)  The added value of that portion of the cost of
imported materials that is incurred after landing in Hawaii, including but not
limited to other articles, materials, and supplies, added to the imported
materials;



(3)  The cost of labor, variable overhead, utilities,
and services, incurred in the production and manufacturing of materials or
products in Hawaii; and



(4)  Fixed overhead cost and amortization or
depreciation cost, if any, for buildings, tools, and equipment, situated and
located in Hawaii and used in the production or manufacturing of a product.



"Hawaii products" means products that
are mined, excavated, produced, manufactured, raised, or grown in the State and
where the cost of the Hawaii input towards the product exceeds fifty per cent
of the total cost of the product; provided that:



(1)  Where the value of the input exceeds fifty per
cent of the total cost, the product shall be classified as class I; and



(2)  Where any agricultural, aquacultural,
horticultural, silvicultural, floricultural, or livestock product is raised,
grown, or harvested in the State, the product shall be classified as class II.



"Hawaii software development
business" means any person, agency, corporation, or other business entity
with its principal place of business or ancillary headquarters located in the
State and that proposes to obtain eighty per cent of the labor for software
development from persons domiciled in Hawaii.



"Office paper" includes computer
paper, bond paper, ledger paper, xerographic copier paper, envelopes, and other
related types of paper on which printing, writing, or drawing is intended.



"Person" means every individual,
partnership, firm, society, unincorporated association, joint venture, group,
hui, joint stock, company, corporation, trustee, personal representative, trust
estate, decedent's estate, trust, or other entities, whether the persons are
doing business for themselves or in any agency or fiduciary capacity.



"Person with disabilities" means any
person who is so severely incapacitated by any physical or mental disability
that the person cannot engage in normal competitive employment because of the
disability.



"Post-consumer material" means a
material or finished product that has served its intended use and has been
discarded for disposal or recovery, having completed its life as a consumer
item, and is a part of the broader category of recovered material.



"Printed material" includes business
forms, stationery, business cards, brochures, reports, publications,
advertising and promotional collateral, and other related materials, including
reports, publications, and related materials commissioned as part of any
professional services contract.



"Produced or manufactured" includes
the processing, developing, and making of a thing into a new article with a
distinct character and use through the application of input within the State
including Hawaii products, labor, skill, or other services.  "Produced or
manufactured" does not include the mere assembling or putting together of non-Hawaii
products or material.



"Products" include materials,
manufactures, supplies, merchandise, goods, wares, products, and foodstuffs.



"Public agency" means any agency of
the State or county.



"Qualified community rehabilitation
program" means a nonprofit community rehabilitation program for persons
with disabilities that:



(1)  Is organized and incorporated under the laws of
the United States or this State, and located in this State;



(2)  Is operated in the interest of and [employs]
persons with disabilities;



(3)  Does not inure any part of its net income to any
shareholder or other individual;



(4)  Complies with all applicable occupational health
and safety standards required by the federal, state, and county governments;
and



(5)  Holds a current certificate from the United
States Department of Labor pursuant to the Fair Labor Standards Act, Title 29
United States Code section 214(c), and is certified by the state department of
labor and industrial relations under section 387-9 and applicable
administrative rules relating to the employment of persons with disabilities.



"Recovered material" means waste
material and by-products that have been recovered or diverted from solid
waste.  "Recovered material" does not include those materials and
by-products generated from, and commonly reused within, an original
manufacturing process.



"Software development" means any work
related to feasibility studies, system requirements analysis, system design
alternatives analysis, system external specifications, system internal specifications,
programming, testing, debugging, or implementation for an electronic data
processing system. [L 1994, c 186, pt of §1; am L 1999, c 149, §4; am L 2009, c
175, §5]