House Standing Committee on Labor

Good morning. I'm calling to order the House Committee on Labor. It is Thursday, February 13, 2025, 9:00am. We're in Conference Room 309. We only have three items on the agenda today, so this should be quick. But first, we have HB 1221 relating to procurement. First to testify, we have Keith Regan, Comptroller from the DAGS, with comments.

Hi. Gordon Woods, Public Works Administrator, on behalf of Mr. Regan. The department stands on its written testimony offering comments. I'm available for any questions.

Thank you. Next, we have IBEW Local 1260 in opposition. Okay. There you go. Yeah, you're up. We're just on 1221.

Apologies, Chair, Vice Chair, Members of the Committee. Kika Bukoski on behalf of IBEW 1260. We submitted testimony in opposition to this measure. However, we understand that stakeholders involved in the discussion have been working with us to come up with language. We support the intent of the measure, but we do have concerns with specific language.

We want to ensure that the intent of Act 17, when it was adopted in 2009, actually serves the purpose that it was intended to serve, which was to promote apprenticeable trade programs throughout the industry and not just a few. Unfortunately, the way it's being interpreted today, it only benefits a few, which hurts the apprenticeship programs across the state.

We always are talking about workforce development and local workforce development. The apprenticeable trades provide that development aspect. And to get a 5% reduction in bid price, that's a tremendous advantage for bidders.

And I think it's not too much to ask that we promote all of the apprenticeable trades that are required to work on a project, a specific project, and complete that project.

And we understand that there are some concerns coming from the general contractors, and we're open to working with them to make sure that their concerns are addressed as well as ours. Thank you.

Thank you. That's all the testifiers we have scheduled. Are there any other persons here to testify on this measure? Please come up. State your name for the record.

Ryan Sakuda from the General Contractors Association. I just wanted to stand on my written testimony in opposition, but just acknowledge that we are in receipt of proposed language from the proponents of this measure. And we will be reviewing that and we will come back to you guys with anything that we hopefully can resolve between the parties.

Thank you. Are there any other persons here to testify on this measure? Seeing none, Members, we do have written testimony in support from the State Procurement Office as well as Goodfellow Bros. LLC in support. Members, any questions on this measure?

Seeing none. We'll be moving on to HB 741, HD 1. This is relating to housing. First to testify, we have—no one. Are there any other persons—anyone here to testify on this measure? Okay, seeing none. Members, we do have written testimony in support from HA, oh no, this is Hawaii Housing Finance and Development Corporation. PRP in opposition.

Hawaii Habitat for Humanity Association in support. Maui Chamber of Commerce in support. Habitat for Humanity, Hawaii Island Inc. in support. Hawaii Regional Council of Carpenters in opposition. Hawaii Community Lending in support and an individual in opposition. Okay, seeing that there is no one to testify, we'll be moving on to HB 1368.

This is relating to the Hawaii Employer Union Health Benefits Trust Fund Board of Trustees. First to testify on this measure, we have Luis Salaveria, Director for BNF, in opposition.

Good morning, Chair, Vice Chair. Representative Luis Salaveria, Director of Finance for the State of Hawaii. I will stand on our testimony respectfully in opposition to this Bill. Be happy to answer any questions but just want to highlight that the role of a trustee, especially for the ETF, is a very, very, you know, fiduciary the, you know, insignificant role.

So, the composition, as it's set up right now, really kind of provides for equal representation from both the employer and the employee. So, we would like to continue to see that, that existing structure go forward, Chair. So, thank you very much. Be happy to answer any questions.

Next, we have Christian Fern, Executive Director for UHPA, in opposition.

Chair Sayama, Vice Chair Lee, Representative Kong, thank you for the opportunity to testify. You do have my written comments. I did want to highlight a couple of things, in addition to what I stated there. I do have 17 years of experience working both at HMSA and Kaiser. I did represent both entities with the EUTF.

I don't see a reason for the change. I'd be happy to answer questions or work with the Legislature on anything that needs to be fixed. I will also highlight the fact that the current Budget and Finance Chair actually used to sit on the ETF, as did the current Administrator when he was the Deputy Director at HGEA.

I think we all are in agreement that the manner in which it's currently set up works in the best interest of the beneficiaries, as well as with the Trust. But I'm happy to answer any questions, as a sitting trustee. We have been able to move forward some significant benefits, especially in the past year, wth the current setup.

I don't think outside influence from these supposed experts will be beneficial for the beneficiaries. But again, here to answer any questions and thank you for the opportunity to testify.

Thank you. Next, we have Randy Pera, Executive Director for HGEA, in opposition.

Good morning, Chair, Vice Chair, Member. Nui Sebastian here with HGEA. We'll stand on our written testimony in strong opposition. Mahalo.

Thank you. Are there any other persons here to testify on this measure?

Good morning, Chair, Vice Chair, and Rep. Kong. Derek Mizuno, ETF Administrator. We submitted written testimony providing comments and concerns. I'm here to take any questions if necessary. Thank you.

Thank you.

Hello, Chair, Vice Chair, Rep. Kong. Kamakana Kaimuloa United Public Workers. I apologize, we submitted testimony really late this morning, but basically, we are in strong opposition to this Bill. You know, we agree with everything that's been said this morning, but we'd be happy to answer any questions you may have. Thank you.

Thank you. Any other persons here to testify on this measure? Okay. Seeing none. Members, we do have written testimony in opposition from HSTA, Hawaii State AFL CIO, and that's it. Okay, Members, any questions on this measure? Okay. Seeing none, we'll be taking a short recess to gain quorum for decision making. Recess.

All right, I'm calling back to order the House Committee on Labor for decision-making. First, we have HB 1221. This is relating to procurement, as the testimony and testifiers had mentioned, I think this is still work in progress, but I think we are getting to a point of agreement.

So we did receive language from the stakeholders regarding certain amendments. So we'll be adding language into this bill that the 5% bid preference applies to both bidder and subcontractors that utilize the apprentices approved by the Department of Labor Industrial Relations.

And then we'll also be adding DAGS's suggested recommendations as well as technical amendments needed for clarity, consistency and style. And we'll be adding a purpose section for Section 1 to clarify the intent of this measure, again, is to ensure that the state is promoting the use of apprentices in these works.

And then we'll again add a little bit more language for clarity, consistency and style and put a defective date of July 1, 3000. Members, any comments? Seeing none. Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 1221. Chair's recommendation is to pass with amendments. Chair and Vice Chair vote aye. [Roll call]

Noting the absence of Representative Kapela and Representative Reyes Oda who are excused. Chair, your recommendation is adopted.

Thank you. Moving on to HB 741, HD1, relating to housing. I'd like to note the concerns that were brought up in the written testimony as well as, I think, the supportive testimony. I think there's a lot of potential here to encourage affordable housing development. But we'd like the stakeholders to continue working on this measure.

So we'll be passing this forward to the next Committee as is. Members, any comments? Seeing none. Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 741. Chair's recommendation is to pass as is. Noting the absence of Representative Kapela and Representative Reyes Oda, are there any votes with reservation or nay votes? Chair, I'll be voting with reservation.

Thank you. Next we have HB 1368. This is relating to the Hawaii EUTF Benefits Board of Trustees. My recommendation is that we defer this measure. I think we have an overwhelming consensus in the testifiers we've heard from today with regards to the concerns of changing the composition of this particular board. So again, my recommendation is to defer.

This hearing is adjourned.