Bill Text: HI HB2457 | 2016 | Regular Session | Amended


Bill Title: Public Works; Earned Credit Certificate; Apprenticeship

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2016-02-17 - The committee(s) on CPC recommend(s) that the measure be deferred. [HB2457 Detail]

Download: Hawaii-2016-HB2457-Amended.html

HOUSE OF REPRESENTATIVES

H.B. NO.

2457

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PROCUREMENT.

 

 

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

 


     SECTION 1.  Chapter 103, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§103-    Public works construction; earned credit certificate.  (a)  Any contractor that uses apprentices enrolled in or graduated from an apprenticeship pursuant to chapter 372 to complete a minimum of ten per cent of the onsite labor hours for a public works construction project shall earn an earned credit certificate from the department of labor and industrial relations.  The earned credit certificate may be used for a five per cent preference on a bid for a future public works construction project.

     (b)  As part of the contract close-out procedure, if the contracting agency determines that the contractor has met the requirements pursuant to subsection (a), the contracting agency shall notify the department of labor and industrial relations.

     (c)  The earned credit certificate shall be valid for one year from the date of issuance and shall not be applied toward any future contract bid after the expiration of that period.  The contractor may apply the earned credit certificate on multiple future construction project contract bids during the period in which the earned credit certificate is valid, but may only receive one bid incentive for bid evaluation purposes on one construction project contract award.  If the contractor applies the earned credit certificate on multiple construction project bids and is the lowest responsive and responsible bidder on more than one construction project bid, the earned credit certificate shall be applied to the construction project by bid opening date, or if multiple construction project bids were on the same date, the earned credit certificate shall be applied only to the construction project with the greatest dollar value.

     (d)  The contractor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the contracting agency.

     The contracting agency or any duly authorized representative shall have full access to the contractor's and subcontractor's records for the purpose of verification and compliance with this section.  The contractor and subcontractors shall maintain all relevant records for a period of at least three years after final acceptance of the work.

     (e)  The director of labor and industrial relations may adopt rules pursuant to chapter 91 pertaining to the administration and enforcement of this section.

     (f)  As used in this section:

     "Contracting agency" means a governmental body, as defined in section 103D-14, who enters into a public works contract.

     "Contractor" means a bidder who is awarded a public works contract pursuant to this chapter."

     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] type of classification that the bidder will list on the certified payroll affidavit 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 [apprenticeable trade the bidder will employ] type of classification that the bidder will list on the certified payroll affidavit, that is recognized in accordance with the department in their wage rate schedule bulletin to construct the public works and[, if] the contractor shall be in compliance with the apprentice to journey worker ratio set forth by the workforce development division of the department of labor and industrial relations for the craft or trade in each apprenticeable trade that the bidder will list on the certified payroll affidavit.  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 [apprenticeable trade the bidder will employ] type of classification that the bidder will list on the certified payroll affidavit 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 at any time during the construction is no longer a party to a registered apprenticeship agreement for each [apprenticeable trade the bidder will employ] type of classification that the bidder will list on the certified payroll affidavit 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 does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  This Act shall take effect on July 1, 2091.



 

Report Title:

Public Works; Earned Credit Certificate; Apprenticeship

 

Description:

Establishes an earned credit certificate for contractors in public works projects who meet certain apprenticeship requirements.  Clarifies information that a bidder must disclose in a competitive sealed bid for public works projects.  (HB2457 HD1)

 

 

 

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

 

 

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