Honolulu, Hawaii



RE:    S.B. No. 1070

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committees on Judiciary and Labor and Ways and Means, to which was referred S.B. No. 1070, S.D. 1, entitled:




beg leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Provide a bidder of a public works construction project with two hours after the closing of a bid to clarify and correct minor technical issues with subcontractor listings; and


     (2)  Afford a legal means of redress to subcontractors affected by bid shopping and bid peddling practices in public works.


     Your Committees received testimony in support of this measure from BIA-Hawaii; General Contractors Association of Hawaii; Jayar Construction, Inc.; LYZ, Inc.; Nordic PCL Construction, Inc.; Ralph S. Inouye Co., Ltd.; Alan Shintani Inc.; and S & M Sakamoto, Inc.  Your Committees received testimony in opposition to this measure from the State Procurement Office; Subcontractors Association of Hawaii; Dorvin D. Leis Co., Inc.; HSI Mechanical, Inc.; and Plumbing and Mechanical Contractors Association of Hawaii.  Your Committees received comments on this measure from the Department of Accounting and General Services; Regulated Industries Complaints Office, Department of Commerce and Consumer Affairs; and Contractors License Board, Professional and Vocational Licensing Division, Department of Commerce and Consumer Affairs.


     Your Committees find that allowing subcontractor plaintiffs to recover monetary damages from prime contractors and substituted subcontractors would discourage the unscrupulous practice of bid shopping and bid peddling in the competitive sealed bidding process.  Your Committees also find that the competitive sealed bidding process can be improved by providing additional time for bidders to clarify and correct subcontractor information, which may minimize bid challenges, costs, and delays of public works projects while maintaining the integrity of the bid process.


     Your Committees have amended this measure by:


     (1)  Inserting an effective date of January 7, 2059, to encourage further discussion; and


     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.


     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1070, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1070, S.D. 2.


Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Ways and Means,