STAND. COM. REP. NO.  866-10

 

Honolulu, Hawaii

                , 2010

 

RE:   S.B. No. 2840

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Sir:

 

     Your Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment, to which was referred S.B. No. 2840, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

 

beg leave to report as follows:

 

     The purpose of this bill is to strengthen the local economy by requiring contractors awarded construction contracts under the Hawaii State Procurement Code (Code), to ensure that Hawaii residents comprise not less than 80 percent of the workforce employed for the contract.

 

     Hawaii State AFL-CIO; ILWU Local 142; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and the Council Chair of the Maui County Council supported this bill.  District Council 50 supported the intent of this measure.  The Department of Design and Construction of the City and County of Honolulu opposed this bill.  The Department of Accounting and General Services, Department of Budget and Fiscal Services of the City and County of Honolulu, American Civil Liberties Union of Hawaii, and several concerned individuals commented.


     Your Committees have amended this measure by replacing its substance with the substance of H.B. No. 2736, H.D. 1, a measure that passed out of the Committee on Finance earlier this session.  In addition, as this bill is intended to apply only to construction contracts awarded under the Code, amendments were made to remove superfluous and confusing references to "public works."

 

     Your Committees find that the definition of "resident" in this bill controls the procurement preference, and may also affect the bill's constitutionality.  Your Committees respectfully request the Committee on Finance, to which this bill is next referred, to examine the issue of constitutionality as well as the various definitions of "resident" used by states that have enacted resident preferences.

 

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2840, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2840, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization, Business, & Military Affairs and Labor & Public Employment,

 

 

____________________________

KARL RHOADS, Chair

 

____________________________

ANGUS L.K. MCKELVEY, Chair