HB3073

Report Title:

Construction Industry Authority; construction

Description:

Establishes a Construction Industry Authority.

HOUSE OF REPRESENTATIVES	H.B. NO.	3073
TWENTY-THIRD LEGISLATURE, 2006
STATE OF HAWAII

A BILL FOR AN ACT

relating to economic development.

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

hawaii construction authority

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or its political subdivisions.

"Authority" means the Hawaii construction authority established in section -2.

"Board" means the board of directors of the Hawaii construction authority established in section -2, and any successor thereto.

"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

§ -2 Hawaii construction authority; establishment; board; staff. (a) There is established the Hawaii construction authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of labor and industrial relations for administrative purposes only.

(b) The authority shall be headed by a policy-making board of directors which consists of twelve public, voting members, and four ex officio nonvoting members; provided that:

(1) The twelve public, voting members shall be appointed by the governor as provided in section 26-34, except as otherwise provided by law;

(2) The twelve public, voting members shall be composed of at least one representative each from the city and the counties of Honolulu, Hawaii, Kauai, and Maui; the remaining public members shall be appointed at-large;

(3) Of the twelve public, voting members:

(A) Three shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate; and

(B) Three shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives;

provided that if fewer than three names are submitted for each appointment, the governor may disregard the list;

(4) Of the twelve public, voting members at least:

(A) Six shall have knowledge, experience, and expertise in at least one of the area of construction, architecture, engineering, or the building industry;

(B) One shall have knowledge, experience, and expertise with labor organizations representing the construction trades; and

provided that no more than three members shall represent, be employed by, or be under contract to any sector of the industry represented on the board;

(5) The governor shall make appointments to ensure the fulfillment of all requirements; provided that any appointments made after July 1, 2007, shall be made to fulfill the requirements in place when the appointments are made; and

(6) The ex-officio nominating members shall be as follows:

(A) The director of labor and industrial relations, or a designated representative;

(B) The director of commerce and consumer affairs, or a designated representative;

(D) The chairperson of the board of land and natural resources, or a designated representative.

(c) The public members shall be appointed by the governor for terms of four years. Each public member shall hold office until the member's successor is appointed and qualified. Section 26-34 shall be applicable insofar as it relates to the number of terms and consecutive number of years a member may serve on the board.

(d) The board shall elect a chairperson from among the voting members.

(e) Seven voting members shall constitute a quorum and a minimum of seven affirmative votes shall be necessary for all actions by the authority. The members shall serve without compensation, but shall be reimbursed for expenses, including traveling expenses, necessary for the performance of their duties.

(f) The board:

(1) Shall appoint an executive director, exempt from chapters 76 and 88 who shall oversee the authority staff;

(2) Shall set the executive director's salary, duties, responsibilities, holidays, vacations, leave, hours of work, and working conditions; provided that the compensation package shall not include private sector moneys or other contributions; and

(3) May grant such other benefits as it deems necessary.

(g) The authority may employ persons not subject to chapters 76 and 78 to perform and execute the functions of the authority.

§ -3 Authority; private attorneys. (a) The board may appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services for the board solely in cases in which the attorney general lacks sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general assigned to the Hawaii construction authority.

(b) The board may fix the compensation of the attorneys appointed or retained pursuant to this section. Attorneys appointed or retained by contract shall be exempt from chapters 76, 78, and 88.

§ -4 Powers and duties. (a) Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds;

(4) Make and alter bylaws for its organization and internal management;

(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, and facilities;

(6) Through its executive director represent the authority in communications with the governor and with the legislature;

(7) Through its executive director:

(A) Provide for the appointment of officers, agents, and employees, subject to the approval of the board, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78 if there is no anticipated revenue shortfall in the construction authority special fund and funds have been appropriated by the legislature and allotted as provided by law;

(B) Purchase supplies, equipment, and furniture; and

(8) Engage the services of qualified persons to implement the State's construction industry development plan or portions thereof as determined by the authority;

(9) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(10) Procure insurance against any loss in connection with the state's property and other assets and operations in such amounts and from such insurers as it deems desirable;

(11) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source, including any revenues;

(12) Develop, coordinate, and implement state policies and directions for the construction industry and related activities taking into account the economic, social, and physical impacts of construction on the state and the state's natural resources infrastructure; provided that the authority shall support the efforts of other state and county departments or agencies to manage and improve Hawaii's construction industry;

(13) Conduct research as necessary;

(14) Coordinate all agencies and advise the private sector in the development of construction activities and resources;

(15) Coordinate the development of new and innovative construction and building concepts with the counties and other public and private sectors, including the development of education and technology programs;

(16) Establish a public information and educational program to inform the public of construction, building, and construction-related problems;

(17) Encourage the development of building trades educational, training, and career counseling programs; and

(18) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the construction industry and taking appropriate action as necessary.

(b) The authority shall be responsible for:

(1) Creating a vision and developing a long-range strategic plan for construction in Hawaii;

(2) Coordinating this construction industry plan for the State;

(3) Reviewing all state and county laws to determine whether there is redundancy, and if so, whether elimination of this redundancy will improve the construction industry in the state;

(4) Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning the social, economic, and environmental impacts of construction in this state or any other aspects of construction in the state deemed necessary by the board;

(5) Providing technical or other assistance to agencies and private industry upon request; and

(6) Reviewing annually the expenditure of public funds by any construction industry organization with which the authority contracts to perform duties related to the long-range construction development plan and making recommendations necessary to ensure the effective use of the funds for the development of construction. The authority shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the authority may make and shall submit the report to the governor and the legislature as part of the annual report required under section -13.

(c) The authority shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law.

§ -5 Meetings of the board. (a) The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise, the board may enter into an executive meeting that is closed to the public.

(b) The board shall be subject to the procedural requirements of section 92-4, and this authorization shall be in addition to the exceptions listed in section 92-5, to enable the board to respect the proprietary requirements of enterprises with which it has business dealings.

§ -6 Exemption of Hawaii construction authority from administrative supervision of boards and commissions. Notwithstanding any law to the contrary, the authority shall be exempt from section 26-35 with the exception of section

26-35(a)(2), (3), (7), and (8) and (b).

§ -7 Construction industry development plan; measures of effectiveness. (a) The authority shall be responsible for developing a long-range construction industry development plan that shall be updated every year and, at a minimum, include the following:

(1) Construction projects already in progress;

(2) Construction projects targeted to begin during the current calendar year;

(3) Construction projects projected to begin during the next five calendar years;

(4) A review of all federal, state, and county laws that will affect the construction industry in the state;

(5) Efforts to improve the construction industry through coordination among agencies that provide oversight or have jurisdiction over construction projects;

(6) Projections on the labor needs of the construction industry and the capabilities of the construction industry to meet these demands; and

(7) Efforts to improve the education and training of the building trades.

(b) In accordance with subsection (a), the authority shall be responsible for developing measures of effectiveness to assess the overall benefits and effectiveness of the long-range construction industry development plan and include documentation of the directly attributable benefits of the plan to:

(1) Hawaii's construction industry;

(2) Employment in Hawaii; and

(3) State taxes.

§ -8 Hawaii construction authority special fund. (a) There is established the Hawaii construction authority special fund, into which shall be deposited:

(1) Appropriations by the legislature to the Hawaii construction authority special fund;

(2) Gifts, grants, and other funds accepted by the authority; and

(3) All interest and revenues or receipts derived by the authority from any project or project agreements.

(b) Moneys in the Hawaii construction authority special fund may be:

(1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or

(2) Otherwise invested by the authority until such time as the moneys may be needed; provided that the authority shall limit its investments to those listed in section 36-21.

All interest accruing from the investment of these moneys shall be credited to the Hawaii construction authority special fund.

(c) Moneys in the Hawaii construction authority special fund shall be used by the authority for the purposes of this chapter.

§ -9 Exemption of authority from Hawaii public procurement code. The authority shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements, lease and sublease agreements, or other contracts unless a project agreement with respect to a project requires otherwise.

§ -10 Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

§ -11 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the Hawaii construction authority under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

§ -12 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

(b) Upon application of counsel to the authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.

(c) Any action or proceeding to which the authority, the State, or the county may be party, in which any question arises as to the validity of this chapter or any portion of this chapter, or any action of the authority may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

(d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.

(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.

§ -13 Annual report. The authority shall submit a complete and detailed annual report of its activities, expenditures, and results to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

SECTION 2. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the trustees for any action involving the travel agency recovery fund;

(8) By the office of Hawaiian affairs;

(9) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485;

(10) As grand jury counsel;

(11) By the Hawaiian home lands trust individual claims review panel;

(12) By the Hawaii health systems corporation or any of its facilities;

(13) By the auditor;

(14) By the office of ombudsman;

(15) By the insurance division;

(16) By the University of Hawaii;

(17) By the Kahoolawe island reserve commission;

(18) By the division of consumer advocacy;

(19) By the office of elections;

(20) By the campaign spending commission;

(21) By the Hawaii tourism authority, as provided in section 201B-2.5; [or]

(22) By the Hawaii construction authority, as provided in section -3; or

[~~(22)~~] (23) By a department, in the event the attorney general, for reasons deemed by the attorney general good and sufficient, declines, to employ or retain an attorney for a department; provided that the governor thereupon waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Hawaii construction authority as provided in section -3, the Hawaiian home lands trust individual claims review panel, or as grand jury counsel, shall be a deputy attorney general."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2006-2007 for the establishment of the Hawaii construction authority.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

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, 2006.

INTRODUCED BY:	_____________________________