REPORT TITLE:
Public Contracts


DESCRIPTION:
Makes a contractor ineligible for further public contracts if the
contractor fails to pay the subcontractor or set up a payment
plan with subcontractor.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1402        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC CONTRACTS.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 103-10.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]103-10.5[]]  Prompt payment.  (a)  Any money, other
 
 4 than retainage, paid to a contractor shall be dispersed to
 
 5 subcontractors within ten days after receipt of the money in
 
 6 accordance with the terms of the subcontract[,]; provided that
 
 7 the subcontractor has met all the terms and conditions of the
 
 8 subcontract and there are no bona fide disputes.  Upon final
 
 9 payment to the contractor, full payment to the subcontractor,
 
10 including retainage, shall be made within ten days after receipt
 
11 of the money[,]; provided there are no bona fide disputes over
 
12 the subcontractor's performance under the subcontract[.] pursuant
 
13 to rules adopted by the comptroller.
 
14      (b)  The failure of a contractor to pay a subcontractor in
 
15 accordance with this section shall render the contractor
 
16 ineligible to bid on future public contracts; provided that a
 
17 contractor who fails to pay a subcontractor in accordance with
 
18 this section may be permitted to submit bids on public contracts
 
19 by submitting and complying with a subcontractor payment plan to
 

 
Page 2                                         1402        
                                     H.B. NO.           
                                                        
                                                        

 
 1 be approved by the comptroller prior to submitting the bid.
 
 2      (c)  The comptroller shall adopt rules pursuant to chapter
 
 3 91 as may be necessary to implement this section."
 
 4      SECTION 2.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 3.  This Act shall take effect upon its approval.
 
 7 
 
 8                              INTRODUCED BY:______________________