STAND. COM. REP. NO.  1548

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 1221

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1221, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to:

(1)  Specify certain sanctions for general contractors and subcontractors who fail to comply with sanctions under Chapter 103B, Hawaii Revised Statutes, relating to employment of state residents on construction procurement contracts;

(2)  Authorize a contractor to withdraw a bid prior to an award of a contract if the contractor finds that it is unable to comply with the 80 percent Hawaii resident workforce requirement; and

(3)  Specify that a general contractor shall not be sanctioned for noncompliance by a subcontractor of that general contractor on the same contract.

     The International Union of Painters and Allied Trades, District Council 50 testified in support of this bill.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1221, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair