STAND. COM. REP. NO.1103

Honolulu, Hawaii

, 2001

RE: S.B. No. 749

S.D. 2

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred S.B. No. 749, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE,"

begs leave to report as follows:

The purpose of this bill is to ensure compliance with federal and state laws regarding employment and bid preferences for state residents by:

(1) Establishing definitions of "state resident", "state contractor", and "state subcontractor"; and

(2) Increasing the bid preference in favor of state contractors from seven to 13 percent on state public works contracts for $10,000,000 or less.

Testimony in support of this measure was submitted by: Hawaii State AFL-CIO; Hawaii Building and Construction Trades Council, AFL-CIO; Hawaii Construction Industry Association; Hawaii Island Contractors' Association; International Brotherhood of Electrical Workers, Local Union 1186; Local 625, Ironworkers Union; Laborers' International Union of North America, Local 368, AFL-CIO; Plumbers and Fitters Union Local 675; Nordic Construction, Ltd.; Grace Pacific Corporation; Hawaii Operating Engineers Industry Stabilization Fund; Allied Construction, Inc.; Royal Contracting Co., Ltd.; Ron's Construction Corporation; Ralph S. Inouye Co., Ltd.; S & M Sakamoto, Inc.; Jayar Construction, Inc.; T. Iida Contracting, Ltd.; Walter Y. Arakaki, General Contractor, Inc.; Isemoto Contracting Co., Ltd.; and Koga Engineering & Construction, Inc. The State Procurement Office also testified in support and offered amendments. Kiewit Pacific Co. offered comments.

Your Committee has amended this bill by:

(1) Requiring that an affidavit be submitted to the head of the purchasing agency instead of the chief procurement officer. This will expedite the procurement process;

(2) Increasing the bid preference in favor of state contractors to an unspecified amount; and

(3) Making technical, nonsubstantive amendments to correct drafting errors.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 749, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 749, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

____________________________

TERRY NUI YOSHINAGA, Chair