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  Repealed 6/30/04.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.1582       
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,

Page 2                                                     
                                     H.B. NO.1582       

 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 the Hawaii building trades
11 council, unions traditionally representing employees working in
12 the building and construction industry as well as other nonunion
13 contractors, subcontractors, and employees, and incorporate the
14 project labor agreement into the requests for proposals,
15 invitations for bid under chapter 103D, Hawaii Revised Statutes,
16 and contract documents.
17      (c)  Any project labor agreement reached pursuant to this
18 section shall:
19      (1)  Bind all contractors and subcontractors on the
20           construction project by incorporating the project labor
21           agreement into all relevant requests for proposals,
22           invitations for bids under chapter 103D, Hawaii Revised
23           Statutes, and contract documents;

Page 3                                                     
                                     H.B. NO.1582       

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

Page 4                                                     
                                     H.B. NO.1582       

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

Page 5                                                     
                                     H.B. NO.1582       

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

Page 6                                                     
                                     H.B. NO.1582       

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