STAND. COM. REP. NO. 2530

Honolulu, Hawaii

RE: S.B. No. 3014

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Government Operations and Labor, to which was referred S.B. No. 3014 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to clarify requirements for public works projects for a bidder who is a party to an apprenticeship agreement.

Your Committees received testimony in opposition to this measure from the General Contractors Association of Hawaii and Building Industry Association of Hawaii. Your Committees received comments on this measure from the Associated Builders and Contractors Hawaii Chapter.

Your Committees find that promoting trade apprenticeships are important for the future well-being of the State. Apprenticeships in the trades provide invaluable learning experiences for individuals seeking to better themselves and develop skills for life-long careers. Those who work with apprentices should be incentivized to continue doing so. Accordingly, this measure attempts to incentivize apprenticeships through public works contracts by requiring a governmental body that enters into a public works contract under the procurement code having an estimated value of at least $250,000 to decrease the bid amount of a bidder by five percent if the bidder is a party to an apprenticeship agreement registered with the Department of Labor and Industrial Relations for each type of classification that the bidder will list on the certified payroll affidavit to construct the public works.

Your Committees have amended this measure by:

(1) Clarifying that section 103-55.6, Hawaii Revised Statutes, applies to apprenticeable trades that a bidder will directly employ to construct the public works; and

(2) Requiring that, prior to the award, the procurement agency shall verify that the apprenticeable trade in which the bidder qualified for the preference is a trade needed to construct the public works project for which the offer is being made.

As affirmed by the records of votes of the members of your Committees on Government Operations and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3014, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3014, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Labor,

________________________________ JILL N. TOKUDA, Chair

________________________________ DONNA MERCADO KIM, Chair