Report Title:

Apprenticeship; Procurement; Construction Contracts



Requires an offeror for certain construction contracts subject to the state public procurement code, to be a party to an apprenticeship agreement registered with the department of labor and industrial relations at the time of general bidding. (SD1)



S.B. NO.



S.D. 1















SECTION 1. A well-trained, construction-trades work force is critical to state and county public works, which are conducted on a regular basis. The safe, efficient, and economical construction of public works will be threatened if there is a lack of well-trained construction workers. By providing for the use of apprentices on public works projects, state and county government can create opportunities, in partnership with private industries, for training that will help ensure a well-trained work force for future public works construction.

The purpose of this Act is to require an offeror for a construction contract subject to chapter 103D, Hawaii Revised Statutes, to be a party to an apprenticeship agreement that is registered with the department of labor and industrial relations at the time of general bidding.

SECTION 2. Section 103D-310, Hawaii Revised Statutes, is amended to read as follows:

"103D-310 Responsibility of offerors. (a) Unless the policy board, by rules, specifies otherwise, before submitting an offer, a prospective offeror, not less than ten calendar days prior to the day designated for opening offers, shall give written notice of the intention to submit an offer to the procurement officer responsible for that particular procurement.

(b) Whether or not an intention to bid is required, the procurement officer shall determine whether the prospective offeror has the financial ability, resources, skills, capability, and business integrity necessary to perform the work. For this purpose, the procurement officer, in the procurement officer's discretion, may require any prospective offeror to submit answers, under oath, to questions contained in a standard form of questionnaire to be prepared by the policy board. Whenever it appears from answers to the questionnaire or otherwise, that the prospective offeror is not fully qualified and able to perform the intended work, a written determination of nonresponsibility of an offeror shall be made by the head of the purchasing agency, in accordance with rules adopted by the policy board. The unreasonable failure of an offeror to promptly supply information in connection with an inquiry with respect to responsibility may be grounds for a determination of nonresponsibility with respect to [such] the offeror. The decision of the head of the purchasing agency shall be final unless the offeror applies for administrative review pursuant to section 103D-709.

(c) At the time of general bidding, an offeror for a construction contract with a total estimated contract value of $250,000 or more shall be a party to an apprenticeship agreement that is registered with the department of labor and industrial relations, which continues to conform to the standards established pursuant to chapter 372, for apprenticeable trades; provided that this subsection shall not apply to sole source procurements pursuant to section 103D-306.

In determining whether or not an apprenticeship agreement conforms to the standards established pursuant to chapter 372, the procurement officer shall consider the credible number of apprentices enrolled in, and the annual number of graduates of the apprenticeship program.

(d) At the time of general bidding, offerors shall furnish written proof of being a party to a registered apprenticeship agreement, and shall certify the same in writing on a monthly basis for the entire duration of their work on the project. The requirements in this subsection shall be incorporated into each contract.

(e) Any contractor who fails to comply with the requirements of this section subsequent to commencing work shall be subject to one or more of the following sanctions:

(1) Cessation of work on the project;

(2) Withholding of payment due under the applicable contract;

(3) Permanent removal from further work on the project;

(4) Liquidated damages to the contracting agency; or

(5) Suspension from further offerings or awards under sections 103D‑302 and 103D‑303.

[(c)] (f) All offerors, upon award of contract, shall comply with all laws governing entities doing business in the State, including chapters 237, 383, 386, 392, and 393. Offerors shall produce documents to the procuring officer to demonstrate compliance with this subsection. Any offeror [making] who makes a false affirmation or certification under this subsection shall be suspended from further offerings or awards pursuant to section 103D-702. The procuring officer shall verify compliance with this subsection for all contracts awarded pursuant to sections 103D-302, 103D-303, 103D-304, and 103D-306; provided that the attorney general may waive the requirements of this subsection for contracts for legal services if the attorney general certifies in writing that comparable legal services are not available in this State.

[(d)] (g) Information furnished by an offeror pursuant to this section shall not be disclosed to any person except to law enforcement agencies as provided by chapter 92F."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.