Legislative Priorities: 2022 Session

FINAL LEGISLATIVE HIGHLIGHTS - MAY 2022

The 2022 Legislative Session adjourned on May 5, 2022. GCA advocated on behalf of the construction industry throughout the session. We focused our advocacy on opposing efforts attempting to raise the cost of construction, supporting/opposing various procurement code amendments, and supporting state construction initiatives. Some of our major accomplishments include:

Advocating for a historic $6 Billion Construction Budget (various measures including HB 1600 HD1 SD2 CD1, see CivilBeat story here).
Amending the Procurement Code to remove the procurement preference for Hawaii products for construction. SB2384 SD2 HD2 CD1.
Preventing employers from having to pay the highest schedule amount of contributions to the Unemployment Compensation Trust Fund. This relief will allow contributory employers to replenish the UCTF and help reestablish the fund's integrity without facing the highest contribution schedules for years as Hawaii's economy continues to recover from the COVID-19 Pandemic. HB2471 HD1 SD2.
Requiring that the Procurement Policy Board contain at least one member with five years of high-level construction experience. SB2383 SD2 HD2 CD1.

This years stats include:

House Bills Introduced

Senate Bills Introduced

Total Bills Introduced this Session

Bills Passed this Session

Procurement Code

Requires agencies to publicly post the justification for cancelling an invitation for bids or request for proposals, for a minimum of ten days, on a purchasing agency's website, government electronic notification system, or by any other means the procurement officer deems effective. This measure received legislative approval. SB2387 SD1 HD2 CD1
Clarifies that a licensed specialty contractor may perform incidental and supplement work in crafts or trades other than in which the specialty contractor is licensed when there are more than two specialty contractors involved; provided that, when measured by the cost and extent of work involved in performing the specialty contract's work, the unlicensed work is limited to five per cent and is only incidental and supplemental to the performance of the work in the craft for which the specialty contractor is licensed. This measure failed to get legislative approval. SB2709 SD2
Allows bidders to clarify or correct immaterial or technical information required as part of a bid submission for up to twenty-four hours after the bid submission deadline. This measure failed to get legislative approval. SB 2681 SD2
Requires cash or protest bonds to be returned to the initiating parties, minus administrative costs, except in cases where the appeal was frivolous or made in bad faith. This measure failed to get legislative approval. HB 2007 HD2
Allows purchasing agencies to use the median bid method of procurement. This measure failed to get legislative approval. SB 2335 SD2
Among other things, makes cost overruns a construction defect for the purposes of the contractor repair act. This measure failed to get legislative approval. HB 2492 HD1

Development Housing

Establishes the Hawaiian home lands special fund and appropriates $600 million. Funds will be used to develop housing in all counties for native Hawaiians on the state Department of Hawaiian Home Lands waiting list. This measure received legislative approval. HB2511 HD2 SD2 CD1
Appropriates $300 million into the Rental Housing Revolving Fund. For the first time, funding has been set aside – up to $150 million – to develop rental housing for working individuals and families with incomes about sixty and at or below 100 per cent of the median family income for the State of Hawaii. SB 3048 SD2 HD1 CD2
Appropriates $15 million and extends the Ohana Zone pilot program until 2026. Allows the funds to be used for temporary shelter, permanent transitional housing, and services. Services can include medical, social support services, and transportation. This measure received legislative approval. HB 2512 HD2 SD2 CD2
Appropriates $20 million for the Dwelling Unit Revolving Fund to facilitate the development of infrastructure for affordable housing and $5 million to the Affordable Homeownership Revolving Fund to provide gap financing for for-sale housing. This measure received legislative approval. HB 1600 HD1 SD2 CD1
Funds and establishes a working group on affordable housing to foster increased inter-agency coordination on housing and land use issues, address barriers to affordable housing development, and propose future legislation. This measure received legislative approval. HB 1837 HD1 SD2 CD1

Government Operations

Requesting the director of the department of commerce and consumer affairs and the contractors license board to ensure that the contractors license board includes at least two members with expertise in specialty structural contracting. This measure failed to get legislative approval. SCR 184
Clarifies the composition of the stadium authority as added by Act 146, Session Laws of Hawaii 2021. This measure failed to get legislative approval. HB 1552 HD1 SD1
Designates the Vice President for Budget and Finance and Chief Financial Officer of the University of Hawaii as the chief procurement officer for the university. Appropriates moneys for repair and maintenance of campus buildings and infrastructure. This measure failed to get legislative approval. SB 2302 SD2

Human Resources

Taxation / Fiscal Matters

Environment

Requires the Department of Transportation to plan for sea level rise in all future or amended transportation projects. Requires all Department of Transportation highway, harbor, and airport projects to conform to certain carbon concrete standards except in certain circumstances. SB 2295 SD2 HD2 CD1
Requires for each draft environmental assessment and draft environmental impact statement a public hearing in the community directly affected by the underlying proposed action. This measure failed to get legislative approval. SB 2448
Requires all state building construction that uses concrete to use post-industrial carbon dioxide mineralized concrete unless use of these materials will increase costs or delay construction. This measure failed to get legislative approval. HB 2266
Requires all state building construction projects and state highway projects to use building and construction materials that seek to reduce their carbon footprint, where feasible and cost effective. This measure failed to get legislative approval. HB 2423 HD1 SD1

SECOND DECKING LEGISLATIVE HIGHLIGHTS - APRIL 2022

This report highlights key measures affecting the construction industry through the second decking deadline (4/8/22). The GCA’s Legislative Committee determined our advocacy position for each measure identified below. Please note that this list is not exhaustive of every measure affecting the industry and that the substance of each measure may evolve as the session progresses.

Procurement Code

Allows bidders to clarify or correct immaterial or technical information required as part of a bid submission for up to twenty-four hours after the bid submission deadline. This measure passed the Senate, but failed to get House approval. SB 2681 SD2
Requires cash or protest bonds to be returned to the initiating parties, minus administrative costs, except in cases where the appeal was frivolous or made in bad faith. This measure passed the House, but failed to get Senate approval. HB 2007 HD2
Amends the procurement preference for Hawaii products to only apply to agricultural goods, value-added products, and commodities. This measure passed both chambers and will be assigned to Conference Committee. SB 2384 SD2 HD2
Requires agencies to publicly post the justification for cancelling an invitation for bids or request for proposals, for a minimum of ten days, on a purchasing agency's website, government electronic notification system, or by any other means the procurement officer deems effective. This measure passed both chambers and will be assigned to Conference Committee. SB 2387 SD1 HD2
Decreases the number of members on the state procurement policy board from seven to five. Amends the appointment and experience requirements for members by requiring that one member have high level construction experience. This measure passed both chambers and will be assigned to Conference Committee. SB 2383 SD2 HD2
Allows purchasing agencies to use the median bid method of procurement. This measure passed the Senate, but failed to get House approval. SB 2335 SD2
Among other things, makes cost overruns a construction defect for the purposes of the contractor repair act. This measure failed to get House approval. HB 2492

Development Housing

Establishes the transit-oriented development infrastructure improvement district under the Hawaii community development authority. Requires the transit-oriented development infrastructure improvement district board to develop a program to identify necessary infrastructure improvements within the district. Establishes the transit-oriented development infrastructure improvement district special fund. SB 2898 SD2 HD2
Provides supplemental funds to maintain and enhance capacity to support TOD projects by authorizing the issuance of general obligation bonds and appropriates funds for certain transit-oriented development projects identified in the State of Hawaii Strategic Plan for Transit-Oriented Development. This measure passed the House, but failed to get Senate approval. HB 2023 HD1

Government Operations

Clarifies the composition of the stadium authority as added by Act 146, Session Laws of Hawaii 2021. This measure passed both chambers and will be assigned to Conference Committee. HB 1552 HD1 SD1
Designates the Vice President for Budget and Finance and Chief Financial Officer of the University of Hawaii as the chief procurement officer for the university. Appropriates moneys for repair and maintenance of campus buildings and infrastructure. This measure passed the Senate, but failed to get House approval. SB 2302 SD2

Human Resources

Increases the State's minimum wage incrementally to $12.00 per hour beginning October 1, 2022; $15.00 per hour beginning January 1, 2024; and $18.00 per hour beginning January 1, 2026. Reduces the tip credit to 35 cents per hour beginning October 1, 2022, and zero cents per hour beginning January 1, 2026. This measure passed both chambers and will be assigned to Conference Committee. HB 2510 HD2 SD1
Imposes penalty on both the person and firm upon finding of repeat violations of state law governing wages and hours of employees on public works. This measure passed both chambers and will be assigned to Conference Committee. SB 3223 SD1 HD2

Environment

Requires for each draft environmental assessment and draft environmental impact statement a public hearing in the community directly affected by the underlying proposed action. This measure failed to get Senate approval. SB 2448
Requires all state building construction that uses concrete to use post-industrial carbon dioxide mineralized concrete unless use of these materials will increase costs or delay construction. This measure failed to get House approval. HB 2266
Requires all state building construction projects and state highway projects to use building and construction materials that seek to reduce their carbon footprint, where feasible and cost effective. This measure passed both chambers and will be assigned to Conference Committee. HB 2423 HD1 SD1
Requires the Department of Transportation to plan for a certain amount of sea level rise in all future or amended transportation projects. Requires all Department of Transportation projects to conform to certain carbon concrete standards except in certain circumstances. This measure passed both chambers and will be assigned to Conference Committee. SB 2295 SD2 HD2

MID-SESSION HIGHLIGHTS - MARCH 2022

This mid-session report identifies key measures affecting the construction industry during the first half of the legislative session. The GCA’s Legislative Committee determined our advocacy position for each measure identified below. Please note that this list is not exhaustive of every measure affecting the industry and that the substance of each measure may evolve as the session progresses.

Procurement Code

Allows bidders to clarify or correct immaterial or technical information required as part of a bid submission for up to twenty-four hours after the bid submission deadline. This measure passed the Senate. SB 2681 SD2
Requires cash or protest bonds to be returned to the initiating parties, minus administrative costs, except in cases where the appeal was frivolous or made in bad faith. This measure passed the House. HB 2007 HD2
Amends the procurement preference for Hawaii products to only apply to agricultural goods, value-added products, and commodities. This measure passed the Senate. SB 2384 SD2
Clarifies the information concerning contractors and subcontractors required for inclusion in a competitive sealed bid. This measure passed the Senate. SB3034 SD2
Allows purchasing agencies to use the median bid method of procurement. This measure passed the Senate. SB 2335 SD2
Among other things, makes cost overruns a construction defect for the purposes of the contractor repair act. This measure failed to get House approval. HB 2492

Development Housing

Provides supplemental funds to maintain and enhance capacity to support TOD projects by authorizing the issuance of general obligation bonds and appropriates funds for certain transit-oriented development projects identified in the State of Hawaii Strategic Plan for Transit-Oriented Development. This measure passed the House. HB 2023 HD1
Requires inclusion of an unspecified minimum percentage of affordable housing units in state agencies' development and redevelopment plans along the rail transit corridor. Allows the Office of Planning and Sustainable Development to make exceptions to the affordable housing requirement. This measure passed the Senate. SB 2193 SD1

Government Operations

Clarifies the composition of the stadium authority as added by Act 146, Session Laws of Hawaii 2021. This measure passed the House. HB 1552 HD1
Designates the Vice President for Budget and Finance and Chief Financial Officer of the University of Hawaii as the chief procurement officer for the university. Appropriates moneys for repair and maintenance of campus buildings and infrastructure. This measure passed the Senate. SB 2302 SD2

Human Resources

Makes the state earned income tax credit refundable and permanent. Provides for carryforward of nonrefundable credits previously claimed. Incrementally increases the minimum wage and tip credit beginning on 1/1/2023. This measure passed the House. HB 2510 HD2
Increases the minimum wage for certain employees incrementally to $12.00 per hour beginning 10/1/2022, $15.00 per hour beginning 1/1/2024, and $18.00 per hour beginning 1/1/26. This measure passed the Senate. SB 2018

Taxation/Fiscal Matters

Environment

Requires for each draft environmental assessment and draft environmental impact statement a public hearing in the community directly affected by the underlying proposed action. This measure failed to get Senate approval. SB 2448
Requires all state building construction that uses concrete to use post-industrial carbon dioxide mineralized concrete unless use of these materials will increase costs or delay construction. This measure failed to get House approval. HB 2266
Requires all state building construction projects and state highway projects to use building and construction materials that seek to reduce their carbon footprint, where feasible and cost effective. This measure passed the House. HB 2423 HD1
Requires the Department of Transportation to plan for a certain amount of sea level rise in all future or amended transportation projects. Requires all Department of Transportation projects to conform to certain carbon concrete standards except in certain circumstances. This measure passed the Senate. SB 2295 SD2

Interested in finding out more about the GCA Legislative Committee: click here.
GCA Members, interested in joining? Contact Gladys at info@gcahawaii.org.

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