HOUSE OF REPRESENTATIVES

H.B. NO.

1221

THIRTY-THIRD LEGISLATURE, 2025

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to procurement.

 

 

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

 


     SECTION 1.  The legislature finds that a well-trained workforce is essential for Hawaii's economic growth and the successful construction of public buildings, infrastructure, and other development projects and that apprenticeship programs help individuals gain their best knowledge of a particular trade, especially if those individuals can take the knowledge they learn and apply their knowledge and skills in public works construction.

     Although some bidders for public works projects may have an apprenticeship agreement in place during the bidding process and therefore benefit from the advantage conferred under section 103-55.6, Hawaii Revised Statutes, upon bidders who have apprenticeship agreements in place, upon the awarding of a contract, some bidders may then use subcontractors or non-apprentices to actually perform the contracted work.  The legislature further finds that requiring bidders for public works construction who take advantage of the bidding incentive under existing law to actually use apprentices for the contracted work is not only fairer but also ensures that quality workers will help maintain a supply of skilled labor, support workforce development, and enhance the outcomes of public works construction.

     The purpose of this Act is to require a bidder for certain public works construction contracts to use apprentices if the bidder is a party to an apprenticeship agreement registered with the State at the time of general bidding and is awarded the contract.

     SECTION 2.  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, 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 apprenticeable trade the bidder will employ and utilize to construct the public works, and in conformance with chapter 372[.]; provided that the bidder shall employ apprentices pursuant to the apprenticeship agreement for the public works contract if the bidder is awarded the contract.  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 apprenticeable trade the bidder will employ and utilize to construct the public works and, if awarded the contract, shall continue to certify monthly in writing that the bidder is a party to a registered apprenticeship agreement for each apprenticeable trade the bidder will employ to construct the public works and is utilizing the registered apprenticeship agreement to employ apprentices for the entire duration of the bidder's work on the project.  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[:] or no longer employs apprentices through the registered apprenticeship agreement 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 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Procurement; Public Works Contracts; Apprenticeship

 

Description:

Requires a bidder for certain public works construction contracts to utilize apprentices if the bidder receives a bidding advantage for being a party to an apprenticeship agreement registered with the State at the time of general bidding and is awarded the contract.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.