Project Labor Agreements

Authorizes a procurement officer to use project labor agreements
to advance the State's procurement interest in cost, efficiency,
quality, labor-stability, and compliance with applicable laws,
rules, and regulations.  Repealed 6/30/04.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The purpose of this Act is to establish
 2 standards and criteria for a project labor agreement that is
 3 consistent with the United States President's memorandum dated
 4 June 5, 1997, and to encourage the use of a project labor
 5 agreement to achieve economy and efficiency in any new federal
 6 construction project in which the State is authorized to
 7 participate.
 8      SECTION 2.  Project labor agreement.  (a)  In any federal
 9 construction project in which the State is authorized by federal
10 law or regulation, or by agreement with the federal agency to
11 construct, or to participate in the construction of, any federal
12 structure or facility in the State, any department or agency of
13 the State that is authorized to award a contract may, on a
14 project-by-project basis, use a project labor agreement if the
15 project labor agreement:
16      (1)  Advances the project's procurement interest in cost,
17           efficiency, and quality;
18      (2)  Promotes labor-management stability and compliance with
19           legal requirements governing safety and health,

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 1           employment equal opportunity, labor and employment
 2           standards, and other matters; and
 3      (3)  Is not precluded from use because of laws applicable to
 4           the specific construction project.
 5      (b)  If the department or agency of the State determines
 6 that the use of a project labor agreement will serve the goals
 7 set forth in subsection (a), the department or agency of the
 8 State may require that every contractor or subcontractor on the
 9 project agree, for that project, to negotiate or become a party
10 to a project labor agreement with both unions traditionally
11 representing employees working in the building and construction
12 industry as well as other nonunion contractors, subcontractors,
13 and employees, and incorporate the project labor agreement into
14 the requests for proposals, invitations for bid under chapter
15 103D, Hawaii Revised Statutes, and contract documents.
16      (c)  Any project labor agreement reached pursuant to this
17 section shall:
18      (1)  Bind all contractors and subcontractors on the
19           construction project by incorporating the project labor
20           agreement into all relevant requests for proposals,
21           invitations for bids under chapter 103D, Hawaii Revised
22           Statutes, and contract documents;
23      (2)  Fully conform to all applicable laws, regulations, and

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 1           executive orders;
 2      (3)  Allow all contractors and subcontractors wishing to
 3           compete for contracts and subcontracts on the project
 4           to do so, without discrimination against contractors,
 5           subcontractors, or employees based on union or nonunion
 6           status;
 7      (4)  Contain guarantees against strikes, lockouts, and
 8           similar work disruptions;
 9      (5)  Set forth effective, prompt, and mutually binding
10           procedures for resolving labor disputes arising during
11           the project; and
12      (6)  Provide other mechanisms for labor-management
13           cooperation on matters of mutual interest and concern,
14           including productivity, quality of work, safety, and
15           health.
16      (d)  This section does not require a department or agency of
17 the State to use a project labor agreement on any federal
18 construction project, nor does it preclude use of a project labor
19 agreement in circumstances not covered in this section.  This
20 section also does not require a contractor to enter into a
21 project labor agreement with any particular labor organization.
22      (e)  The procurement policy board, in consultation with the
23 departments that are covered by this section, shall establish

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 1 appropriate written procedures and criteria for the
 2 determinations set forth in subsection (a) in accordance with
 3 chapter 91.
 4      (f)  This section does not create any right or benefit,
 5 substantive or procedural, enforceable by a non-state party
 6 against the State, its departments, agencies, or
 7 instrumentalities, its officers, or employees, or any other
 8 person.
 9      SECTION 3.  Chapter 103D, Hawaii Revised Statutes, is
10 amended by adding a new section to be appropriately designated
11 and to read as follows:
12      "103D-     Project labor agreements.  (a)  A procurement
13 officer, as a condition of being awarded a contract, may direct
14 that each responsible and responsive bidder negotiate or become a
15 party to a project labor agreement between the bidder and unions
16 traditionally representing employees working in the building and
17 construction industry as well as nonunion contractors,
18 subcontractors, and employees, and be bound by the provisions of
19 that agreement in the same manner as the provisions of the
20 contract; provided that:
21      (1)  The responsible and responsive bidder and all
22           subcontractors on the construction project shall be
23           signatories to the project labor agreement;

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 1      (2)  Previously negotiated signatories shall be honored; and
 2      (3)  The project agreement shall include the applicable
 3           terms of the standard industry-wide collective
 4           bargaining agreements.
 5      (b)  This section shall not preclude a bidder from
 6 submitting a bid if the bidder presents documentation to the
 7 chief procurement officer that for the duration of the contract
 8 those employed by the bidder and all subcontractors will abide
 9 and be bound to the terms of the project labor agreement.
10      (c)  An award of a contract shall be made to the lowest
11 responsible and responsive bidder who either:
12      (1)  Becomes a signatory to the project labor agreement
13           pursuant to subsection (a), with the exception of
14           honoring previously negotiated signatories; or
15      (2)  Provides documentation to the chief procurement officer
16           pursuant to subsection (b)."
17      SECTION 4.  The department of accounting and general
18 services shall submit a report on the results of the use of
19 project labor agreements authorized by this Act to the
20 legislature twenty days before the convening of the regular
21 session of 2003.
22      SECTION 5.  This Act shall apply to project labor agreements
23 entered into on or after the effective date of this Act.  All

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 1 project labor agreements entered into before the effective date
 2 of this Act shall continue to be honored until their termination.
 3      SECTION 6.  New statutory material is underscored.
 4      SECTION 7.  This Act shall take effect on July 1, 1999; and
 5 shall be repealed on June 30, 2004.
 7                              INTRODUCED BY:______________________