2006-01-AU Audit of the County of Hawai‘i's Recycling and Diversion Grants Program

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CHAPTER 3 RECYCLING AND DIVERSION PROGRAM ANALYSIS DIVERSION GRANT PROGRAM Statutory Authority Hawaii Revised Statutes (HRS) chapter 342G is cited as the "Hawai`i Integrated Solid Waste Management Act. • HRS §342G -26(c) provides, in pertinent part: "For recycling, the counties shall assess the type and amount of solid waste that it is technically feasible to recycle, giving consideration at a minimum to clear glass, colored glass, aluminum, steel and bimetallic cans, high -grade office paper, newsprint, mixed paper, corrugated paper, HDPE, PET, and green waste." HRS §342G -3(a) provides: "It is the goal of the State to reduce the solid waste stream prior to disposal by: (1) Twenty -five percent by January 1, 1995; and (2) Fifty per cent by January 1, 2000; through source reduction, recycling, and bioconversion. Where feasible, the office shall establish other state goals for specific commodities, recognizing market considerations." HRS chapter 103D is known as the "Hawai`i Public Procurement Code," or the State procurement code. HRS § 10313- 1 02(b)(2)(A) provides in pertinent part: "(b) Notwithstanding subsection (a), this chapter shall not apply to contracts by governmental bodies: (1) To disburse funds, irrespective of their source: (A) For grants or subsidies as those terms are defined in section 42F- 101, made by the State in accordance with standards provided by law as required by article VII, section 4, of the State Constitution; or by the counties pursuant to their respective charters or ordinances..." • The Purchasing Division and the Corporation Counsel have interpreted HRS §103D- 102(b)(2)(A) to mean that any grants issued by the County are exempt from the State procurement code as they are governed by the County's Charter or Ordinances. However, Hawaii County Code chapter 2, article 25 appears to address only grants made by the County Council directly to non - profit organizations. 19