HOUSE OF REPRESENTATIVES

H.B. NO.

20

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the repeal of act 17, special session laws of hawaii 2009.

 

 

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

 


     SECTION 1.  The legislature finds that Act 17, Special Session Laws of Hawaii 2009 was intended to stimulate the local economy by applying a five per cent bid reduction for evaluation purposes to bids for public works contracts for bidders that were parties to a registered apprenticeship program with the State of Hawaii's Department of Labor and Industrial Relations.

During the legislative process, despite everyone's desire to boost local employment, concerns were publicly raised about the bill, including the potential cost increase to public works projects, the difficulties in enforcing such a requirement, and the legal problems such a preference would pose to out-of-state contractors. 

These concerns were repeated when the Governor vetoed the bill.  Despite these concerns, the legislature overrode the veto and passed Act 17, Special Session Laws of Hawaii 2009 into law.

     On September 16th, 2010, the United States Department of Housing and Urban Development (HUD) issued an Information Bulletin (CPD-HI-10-01) for all Community Planning and Development consolidated plan contacts within the jurisdiction of the Honolulu Field Office.  The information bulletin informed the State and each of the counties that the "imposition of Act 68 and Act 17 [Session Laws of Hawaii 2010 and Special Session Laws of Hawaii 2009, respectively] preferences is in violation of HUD procurement regulations.  Procurement requirements set forth at 24 CFR 85.36(c)(2) prohibit 'the use of statutorily or administratively imposed in-State or local geography preferences in the evaluation of bids or proposals.'"  The information bulletin went on to inform the State and each of the counties that the use of Act 68 and Act 17 to procurement contracts funded by community planning and development funds were prohibited, and that HUD forwarded the matter to their Office of General Counsel for a determination as to whether Act 68 and Act 17 affected additional programs.  In other words, Act 17, Special Session Laws of Hawaii 2009, violates some federal laws and, depending on the findings of HUD's Office of General Counsel, may violate even more federal laws.

     In light of the growing conflict with federal laws, the legislature finds it in the best interests of the State to repeal Act 17, Special Session Laws of Hawaii 2009.

     SECTION 2.  Act 17, Special Session Laws of Hawaii 2009, is repealed.

     SECTION 3.  This Act shall take effect upon its approval.

 

 

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Procurement

 

Description:

Repeals Act 68, Session Laws of Hawaii 2010

 

 

 

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