HOUSE OF REPRESENTATIVES	H.B. NO.	187
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO public works construction.

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

     SECTION 1.  Section 103-55.6, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a) 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,] $500,000, and to be performed in a county with a population of not less than five hundred thousand, 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] an apprenticeable trade the bidder will employ 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] an apprenticeable trade the bidder will employ to construct the public works [and, if].  If awarded the contract, the bidder shall [continue to] certify [monthly] in writing that the bidder is a party to a registered apprenticeship agreement for [each] an apprenticeable trade that the bidder will employ to construct the public works [for the entire duration of the bidder's work on the project].  At the commencement of the project and at any time during the construction, the successful bidder shall be subject to verification by the department of labor and industrial relations.  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 the bidder will employ 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 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Public Works Construction; Apprenticeship Agreements

Description:

Amends the preference of awarding public works contracts to bidders participating in an apprenticeship program by limiting application to counties with a population of not less than 500,000, increasing the threshold contract value, reducing the effect on the bidding process of the number of apprenticeable trades that the bidder plans to employ for the contract, and limiting certification of a apprenticeship agreement to the commencement of the project.

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