Report Title:

Federal Construction Funds; Coordinator; Special Fund

 

Description:

Establishes the office of federal construction funds coordinator within the department of budget and finance for administrative purposes to monitor, coordinate, report on, and assist state contractors in receiving federal construction funds. Creates the federal construction special fund; requires matching funds.

 

THE SENATE

S.B. NO.

2263

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to federal construction funds.

 

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

SECTION 1. Chapter 29, Hawaii Revised Statutes, is amended as follows:

1. By adding a new section to part I to be appropriately designated and to read:

"29- Federal construction funds coordinator; duties; federal construction special fund. (a) There is created the office of federal construction funds coordinator within the department of budget and finance for administrative purposes.

(b) The office shall be headed by a coordinator who shall be appointed by the governor without regard to chapters 76 and 77, and who shall serve at the pleasure of the governor. The coordinator shall be a member of the state employees' retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State.

(c) In carrying out its duties under this section, the coordinator may request staff assistance from the department of budget and finance and other appropriate state agencies. The coordinator may also employ, without regard to chapters 76 and 77, and at pleasure dismiss such persons as the coordinator finds necessary for the performance of its functions and fix their compensation.

(d) The coordinator shall be responsible for monitoring, coordinating, reporting on, and assisting state contractors in receiving federal construction funds. In particular, the coordinator shall:

(1) Serve as the State's clearinghouse for information on federal construction funds available to state contractors;

(2) Prepare reports on federal construction funds;

(3) Analyze proposed and pending federal and state legislation to determine whether the legislation would have a significant negative effect on the ability of state contractors to receive an equitable share of federal construction funds;

(4) Make recommendations to enhance the ability of state contractors to obtain an equitable share of federal construction funds;

(5) Actively assist state contractors in pursuing federal construction funds through such activities as grant-writing, completing procurement applications, and other measures as appropriate; and

(6) Adopt rules under chapter 91 as may be necessary to carry out the purposes of this section.

(e) The office shall submit an annual report to the legislature no later than twenty days prior to the convening of the regular sessions of the legislature on the effectiveness of the State's efforts to obtain federal construction funds for state contractors for the preceding federal fiscal year. The report shall include:

(1) An executive summary of major findings and recommendations;

(2) A comparative analysis of the receipt of federal construction funds by state contractors relative to other states, prepared using the best available sources of data;

(3) An analysis of federal construction funding trends that may have a significant effect on resources available to the State; and

(4) Recommendations for any state legislative or administrative action necessary to increase the receipt of federal construction funds by state contractors.

(f) There is established in the state treasury a special fund to be known as the federal construction special fund to be administered by the department of budget and finance. There shall be deposited into the fund appropriations, contributions, grants, or gifts in cash or otherwise from any source, including the State, corporations or other businesses, government, individuals, and other interested parties; provided that:

(1) No state funds shall be released unless matched from private, federal, county, or community sources; and

(2) The public and private sectors shall work together as partners in securing contributions for the special fund.

Funds deposited into the special fund shall be expended for all reasonable costs incurred in the administration of the office of federal construction funds coordinator as established by this section.

(g) As used in this section:

"Construction" means the process of building, altering, repairing, improving, or demolishing any public or private structure or building, or other improvements of any kind to any public or private real property. The term includes the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.

"State contractor" means a person, including a subcontractor, who:

(1) Is licensed as a contractor pursuant to chapter 444;

(2) Is licensed to conduct business in this State pursuant to section 237-9;

(3) Submits a bid under the name appearing on the person's current contracting or business license;

(4) Is a domestic corporation, partnership, or business organized or formed under the laws of the State;

(5) Has maintained its principal place of business within the State for at least two-hundred consecutive days prior to the submission of a bid;

(6) Has filed a Hawaii resident income tax and all other applicable tax returns for the preceding tax year and has paid all amounts owing on those tax returns;

(7) Has complied with all applicable Hawaii employment, insurance, and worker's compensation laws;

(8) If an employer with one or more employees, eighty-five per cent of its employees are state residents; and

(9) If a joint venture, is composed entirely of entities that qualify under paragraphs (1) to (8) and eighty-five per cent of all the employees of the joint venture are state residents.

"State resident" means an individual who:

(1) Resides in the State at least two hundred days of the year; and

(2) Has filed a Hawaii resident income tax return in the taxable year immediately preceding a bid for a state contract by the individual's employer or business that is a state contractor and has paid all amounts owing on that tax return; provided that an individual who was a state resident, left the State to attend school or serve in the armed forces of the United States of America, and returned to the State to work for a state contractor is a state resident, even though the individual has not yet resided in the State for at least two hundred days or filed a Hawaii resident income tax return or paid all amounts owing on that tax return."

2. By amending the title to part I to read as follows:

"PART I. [COORDINATOR] FEDERAL COORDINATORS"

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2002-2003, for the purposes of this Act.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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