STAND. COM. REP. NO.  1215

 

Honolulu, Hawaii

                , 2011

 

RE:   S.B. No. 1221

      S.D. 2

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committees on Labor & Public Employment and Economic Revitalization & Business, to which was referred S.B. No. 1221, S.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

beg leave to report as follows:

 

     The purpose of this bill is to:

 

(1)  Specify certain sanctions for general contractors and subcontractors who fail to comply with sanctions under Chapter 103B, Hawaii Revised Statutes (HRS), relating to employment of state residents on construction procurement contracts law;

 

(2)  Authorize a contractor to withdraw a bid prior to an award of a contract if the contractor finds that it is unable to comply with the 80 percent Hawaii resident workforce requirement; and

 

(3)  Provide that a general contractor shall not be sanctioned for noncompliance by a subcontractor of the general contractor on the same contract.


 

     The International Union of Painters and Allied Trades, District Council 50; and the Plumbers and Fitters Union, Local 675 testified in support of this bill.  The Comptroller, General Contractors Association, and Ralph S. Inouye Co., Ltd. testified in support of the intent of this measure.  The Department of Transportation and Legislative Committee of Associated Builders and Contractors, Hawaii Chapter testified in opposition to this measure.

 

     Your Committees have amended this bill by:

 

(1)  Applying the sanction of withholding the final payment only to the general contractor; and

 

(2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the records of votes of the members of your Committees on Labor & Public Employment and Economic Revitalization & Business that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1221, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1221, 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 Labor & Public Employment and Economic Revitalization & Business,

 

 

____________________________

ANGUS L.K. McKELVEY, Chair

 

____________________________

KARL RHOADS, Chair