HUD says “local jobs” laws violate procurement rules
The U.S. Department of Housing and Urban Development says a law that requires local residents get 80 percent of the jobs on state and county construction projects violates its procurement rules, the Governor’s Office said today.
Another state law that favors bidders that offer apprenticeship programs also appears to violate the rules.
Gov. Linda Lingle vetoed both measures. But the Legislature overrode the vetoes.
HUD said that the state laws cannot be applied to projects that use federal community planning and development grant funds.
The state is seeking a federal court ruling to clarify whether the laws violate procurement laws and regulations.
The governor also urged the Legislature to repeal the laws when lawmakers meet in January.
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The laws “place federally funded public construction projects in Hawaii in jeopardy and could even subject the state to fines and penalties,” Lingle said. “In addition to the legality of an ambiguous residency quota and procurement preference, I vetoed these measures because they discourage job creation, delay and increase the cost of public construction projects, and stall our economic recovery.”