HOUSE OF REPRESENTATIVES	H.B. NO.	517
TWENTY-EIGHTH LEGISLATURE, 2015		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO PROCUREMENT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that section 103-55.6, Hawaii Revised Statutes, is cumbersome and has been problematic from an enforcement perspective across all applicable agencies.  This provision, enacted in 2009, provides a procurement preference to a contractor in a public works construction contract of not less than $250,000 if the contractor is a party to an apprenticeship agreement registered with the department of labor and industrial relations for each apprenticeable trade that the contractor will employ to construct the public works.

     The legislature further finds that the law has had unintended results when applied throughout Hawaii.  For example, it does not benefit neighbor island contractors because they do not have access to apprentice training, which is largely conducted on Oahu only.  This causes neighbor island contractors to be disadvantaged when bidding against contractors based on Oahu.  Also, some trades do not have apprentice programs, including for example, non-union civil contractors performing machine and labor work.  Contractors performing a trade that does not have an apprentice program are unfairly disadvantaged when competing for contracts against contractors from trades that have apprenticeship programs.

     The legislature further finds that amending section 103-55.6, Hawaii Revised Statutes, to apply only to appropriate contracts will solve these problems. 

     SECTION 2.  Section 103-55.6, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  [A] In counties with a population of 500,000 or more, a governmental body, as defined in section 103D-104, that enters into a public works contract under this chapter having an estimated value of not less than $250,000, shall decrease the bid amount of a bidder by five per cent if the bidder is a party to an apprenticeship agreement registered with the department of labor and industrial relations for each apprenticeable trade that the bidder will [employ] utilize in the completion of the contract to construct the public works, and in conformance with chapter 372.  The lowest total bid, taking the preference into consideration, shall be awarded the contract unless the solicitation provides for additional award criteria.  The contract amount awarded, however, shall be the amount of the price offered, exclusive of the preference."

     2.  By amending subsection (c) to read:

     "(c)  At the time of submission of a competitive sealed bid or a competitive sealed proposal by a bidder, the bidder shall furnish written proof of being a party to a registered apprenticeship agreement for each apprenticeable trade that the bidder will [employ] utilize in the completion of the contract to construct the public works and, if awarded the contract, shall continue to certify monthly in writing that the bidder is a party to a registered apprenticeship agreement for each apprenticeable trade that the bidder will [employ] utilize in the completion of the contract to construct the public works for the entire duration of the bidder's work on the project.  This subsection shall be deemed to be incorporated into a public works contract.  A bidder who is awarded a contract shall be subject to the following sanctions if, after commencement of work, the bidder at any time during the construction is no longer a party to a registered apprenticeship agreement for each apprenticeable trade that the bidder will [employ] utilize in the completion of the contract to construct the public works:

     (1)  Temporary or permanent cessation of work on the project, without recourse to breach of contract claims by the bidder; provided that the governmental body shall be entitled to restitution for nonperformance or liquidated damages, as appropriate; or

     (2)  Proceedings to debar or suspend under section 103D-702."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored. 

     SECTION 5.  This Act shall take effect on July 1, 2115, and shall apply to bids affected by this Act that are submitted on or after July 1, 2015.

 

 

Report Title:

Procurement; Public Works Construction; Apprenticeship Agreement

 

Description:

Limits public works procurement preference for bidders with registered apprenticeship agreements to contracts with governmental bodies in counties with a population of 500,000 or more.  Requires apprenticeship agreement for each apprenticable trade the contractor will utilize in construction of the public works.  (HB517 HD1)

 

 

 

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