Bill Text: HI SB2841 | 2010 | Regular Session | Introduced

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Bill Title: Procurement; Hawaii Residents Preference; Construction

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2010-01-28 - (S) Referred to LBR/JGO, WAM. [SB2841 Detail]

Download: Hawaii-2010-SB2841-Introduced.html

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THE SENATE	S.B. NO.	2841
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC PROCUREMENT.

 

 

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

 

     SECTION 1.  The legislature finds that state and local spending on public works projects and construction procurement drives a significant portion of Hawaii's economy.  However, because of Hawaii's higher cost of living, state contractors often find it cheaper to employ nonresidents to work on public works projects and construction procurement contracts.  As a result, Hawaii residents face difficulties acquiring employment in this important sector of the Hawaiian economy.  Furthermore, non-resident employees working on public works projects and construction procurement contracts contribute very little to the State's economy while they work in Hawaii, and return a disproportionately large amount of their wages to their home states upon the completion of their employment in Hawaii.

     The legislature further finds that the inability of state residents to acquire employment on public works projects and construction procurement contracts contributes to unemployment in the State, deprives the State of fiscal resources and capital, and dampens the State's economic development.  The intent of this Act is to level the playing field for Hawaii residents and to remedy the negative effects of nonresident employment on public works projects and construction procurement contracts, while preserving contractors' flexibility to employ nonresidents where necessary.

     The purpose of this Act is to establish a preference to hire state residents on procurement contracts for construction.

     SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part X to be appropriately designated and to read as follows:

     "§103D‑    Hawaii residents on construction contracts.  (a)  There shall be a preference to hire Hawaii residents on construction contracts under this chapter.  This section shall apply to a contract under section 103D-302 or section 103D-303.

     (b)  In awarding a contract under this section, a purchasing agency shall require that the contractor certify, under oath, that Hawaii residents comprise not less than eighty per cent of the workforce employed to perform the contract on a particular construction.   The eighty per cent requirement shall be determined by dividing the total number of hours worked on a contract by residents, by the total number of hours worked by all employees of the contractor in the performance of the contract.  Hours worked for any subcontractor of the contractor shall count towards the calculation for purposes of this subsection.  The hours worked by employees within shortage trades, as determined by the department of labor and industrial relations, shall not be included in the calculations for purposes of this subsection. 

     (c)  A competitive sealed bid or a competitive sealed proposal that includes a certification under subsection (b) may be awarded the contract only if the amount of the offer contained in the bid or proposal is not more than fifteen per cent higher than the amount offered by any competing contractor whose bid does not include the certification under subsection (b).

     (d)  The preference under this section shall not be deemed to exclude the application of any other preference under this part or under federal law.

     (e)  A contractor or subcontractor who is awarded a contract after certifying eligibility for the preference under this section but who thereafter fails to employ a workforce for the contract of not less than eight per cent Hawaii residents shall be subject to any of the following sanctions:

     (1)  Temporary suspension of work on the project until the contractor or subcontractor employs the required number of Hawaii residents;

     (2)  Withholding of payment on the contract or subcontract, as applicable, until the contractor or subcontractor employs the required number of Hawaii residents;

     (3)  Permanent disqualification of the contractor or subcontractor from any further work on the project;

     (4)  Recovery by the State or county, as applicable, of any moneys expended on the contract or subcontract, as applicable; and

     (5)  Proceedings for debarment or suspension of the contractor or subcontractor under section 103D-702.

     (f)  This section shall not apply if the application of this chapter is in conflict with any federal law, or if the application of this chapter will disqualify any state or county agency from receiving federal funds or aid."

     SECTION 3.  Section 103D-1001, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Resident" means a person who is physically present in the State at the time the person claims to have established the person's domicile in the State and shows the person's intent is to make Hawaii the person's primary residence."

     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.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Procurement; Hawaii Residents Preference; Construction

 

Description:

Establishes a preference to hire Hawaii residents on public procurement construction contracts.

 

 

 

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