STAND. COM. REP. NO. 1002

Honolulu, Hawaii

RE: S.B. No. 1057

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1057, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to support workforce development by encouraging contractors bidding on state projects to participate in state-registered apprenticeship programs.

Specifically, this measure clarifies that the bid incentive given to bidders for public works construction projects who are parties to an apprenticeship agreement is based on apprenticeable trades utilized, rather than employed, to construct the public works.

Your Committee received written comments in support of this measure from the State Procurement Office; Hawaii Building and Construction Trades Council; International Union of Painters and Allied Trades, District Council 50; Plumbers and Fitters Local 675; International Brotherhood of Electric Workers, Local Union 1260; Goodfellow Bros., LLC; and International Brotherhood of Electrical Workers, Local 1186.

Your Committee received written comments in opposition to this measure from the General Contractors Association of Hawaii.

Your Committee received written comments on this measure from the Department of Accounting and General Services.

Your Committee finds that the current law establishing bid incentives for contractors participating in state-registered apprenticeship programs allows bid preferences only for general contractors whose own employees participate in the apprenticeship agreement. Contractors utilizing subcontractors are therefore disqualified, limiting both the pool of skilled trades contractors available and the training opportunities for the local workforce. Your Committee believes that the amendments in this measure to the bid incentive law will remedy this issue.

Your Committee has amended this measure by:

(1) Clarifying that the bid preference applies to a bidder and the bidder's subcontractors who are parties to all apprenticeable trades utilized to construct the project and for which a state-approved apprenticeship program exists, and requiring written proof of this at the time of submission of a bid or proposal;

(2) Requiring a bidder, upon award of a contract or at any time by request of the governmental body, to provide written certification, within five calendar days, that the bidder and the bidder's subcontractors are parties to registered apprenticeship agreements for the apprenticeable trades that the bidder and subcontractors will utilize to construct the public works, and will continue to be for the entire duration of their work on the project;

(3) Authorizing a governmental body to find a contractor in default if the contractor or the contractor's subcontractor is no longer a party to a registered apprenticeship agreement as required at any time during the construction of the public works; and

(4) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1057, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1057, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair