THE SENATE	S.B. NO.	1057
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
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 the State's economic growth and the successful construction of public buildings, infrastructure, and other development projects.

Therefore, the purpose of this Act is to amend the bid incentive for bidders who participate in an apprenticeship agreement by requiring bidders seeking the bid incentive to ensure that any subcontractor included in the bid also utilize apprentices in available state‑registered apprenticeship programs, thereby further incentivizing participation in state‑registered apprenticeship programs and ensuring a consistent supply of skilled labor.

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] apply a five per cent bid preference if the bidder [is a party to an apprenticeship agreement registered with the department of labor and industrial relations for each apprenticable trade the bidder will employ to construct the public works, and in conformance with chapter 372.] and the subcontractors utilized by the bidder are parties to registered apprenticeship agreements for all apprenticeable trades utilized to construct the project, pursuant to chapter 372, and approved by the department of labor and industrial relations; provided that this requirement shall not apply to trades or classifications for which no state-approved apprenticeship program exists. 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] that the bidder and its subcontractors are parties to a registered apprenticeship agreement for [each] all apprenticeable [trade] trades the bidder [will employ to construct the public works and, if] will utilize to construct the public works project and for which a state-approved apprenticeship program exists. If awarded the contract, and at any time upon request of the governmental body, the bidder, within five calendar days, shall [continue to] certify [monthly] in writing that the bidder [is a party] and the bidder's subcontractors are and will be parties to a registered apprenticeship agreement for [each] the apprenticeable [trade the bidder will employ] trades the bidders and subcontrators will utilize to construct the public works 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 or the bidder's subcontractors at any time during the construction is no longer a party to a registered apprenticeship agreement for each apprenticeable trade the bidder or the bidder's subcontractors will [employ] utilize 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[,] or may find the contractor in default, or both, 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 on July 1, 2050.

Report Title:

Procurement; Public Works Construction; Apprenticeship Agreement; Apprenticeable Trade; Utilization; Subcontractors

Description:

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. Requires the bidder and the bidder's subcontractors to be parties to all apprenticeable trades utilized to construct the project for which a state-approved apprenticeship program exists. Effective 7/1/2050. (SD2)

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