Report Title:

Prevailing wages; exception

 

Description:

Provides for an exception to the prevailing wage for repair, renovation, and construction of public schools.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

885

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PREVAILING WAGES.

 

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

SECTION 1. The legislature finds that Hawaii's public schools are in dire need of repairs and renovation. In addition, overcrowded schools and changes in the school age population will require more schools to be constructed in the near future. The legislature also finds that numerous studies point out the fact that prevailing wage laws inflate the costs of construction by as little as ten percent and as much as thirty percent, an inflation the state can ill afford given the fledgling economic recovery. The purpose of this Act is to exempt construction, repair, and renovation of public schools from the prevailing wage requirements of chapter 104-2, Hawaii Revised Statutes.

SECTION 2. Section 104-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"104-2 Rate of wages for laborers and mechanics; contract and specification provisions. (a) Except as otherwise provided, the specifications of every contract in excess of $2,000 to which a governmental contracting agency is a party, for construction of any public work, shall state the minimum wages that shall be paid to the various classes of laborers and mechanics engaged in the performance of the contract on the job site, and that the minimum wages shall be periodically increased during the performance of the contract in an amount equal to the increase in the prevailing wages for those kinds of work as periodically determined by the director of labor and industrial relations; provided that this subsection shall be applied individually and on a case by case basis to each public work project, including development of housing under section 46-15 or chapter 201G, for which a contract is required under this section, and that specific terms of each contract shall be mutually exclusive of the terms of any other public work contract; and provided further that this subsection shall not apply to:

(1) experimental and demonstration housing developed pursuant to section 46-15 or housing developed pursuant to chapter 201G if the cost of the project is less than $5,000,000 and the eligible bidder or eligible developer is a private nonprofit corporation[.]; and

(2) construction, repair, or renovation of all public schools."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2001.

 

INTRODUCED BY:

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