§201-4  Contracts.  The department ofbusiness, economic development, and tourism may contract with qualified privateand public agencies, associations, firms, or individuals within or without theState in pursuance of its duties and functions; provided that preference shallbe given to contractors within the State; provided further that preferenceshall be given to qualified parties who agree to match department funds inwhole or in part with funds, equipment, materials, or services; providedfurther that funds to assist associations of producers, processors, ordistributors of industrial products to introduce products which are new orinadequately known to consumers shall be matched by funds equal to at leastforty per cent of the funds contracted for by the department or expensesincurred by the department in behalf of the associations; provided further thatin instances where the promotion program will benefit one or more of thecommodity groups as a whole or where a new or fragile commodity association orindustry has the potential for growth but is unable to contribute its fullmatching share, the department may waive matching fund requirements for thefirst three years of any contract, but shall require twenty per cent matchingfunds for the fourth year of any such contract, and at least forty per centmatching funds for the fifth and all subsequent years of any such contract.

The contracts shall be approved in writing bythe department and shall specify the name of the contractor, the nature of thework to be performed, the manner in which funds may be expended, and such dataas the state comptroller may require.

When necessary to effectuate the purposes ofthis part, funds to state agencies may authorize expenditures for the purchaseof machinery and equipment and the erection and conversion of structures,laboratories, and buildings within the State, which facilities shall be andremain under the jurisdiction of the agencies.  Private agencies, associations,firms, or individuals shall provide all structures and equipment necessary toeffectuate the purposes of funds made to them, in which cases the value whichmay be attributed to the use of the facilities shall be considered as matchingfunds.  The department shall retain under its own jurisdiction only suchfurniture, office equipment, and other equipment as is necessary foradministration purposes.

The director of business, economic development,and tourism may prescribe rules, pursuant to chapter 91, to carry outprovisions of this section relating to the manner in which associations ofproducers, processors, or distributors may be assisted.  The rules mayprescribe the qualifications for eligibility of associations for assistanceunder this section, the preferences and priorities in determining eligibilityfor such assistance, and the conditions, consistent with the purpose of thischapter, for the granting or the continuance of assistance to suchassociations. [L 1955, c 264, pt of §1; RL 1955, §28A-3; am L 1957, c 152, §1;am L 1959, c 51, §1; am L Sp 1959 2d, c 1, §§10, 14, 25; am L 1963, c 2, §3 andc 114, §1; HRS §201-4; am L 1977, c 12, §2; am L 1981, c 98, §6; am L 1982, c89, §1; am L 1987, c 336, §7; am L 1990, c 293, §8]