Report Title:

Procurement Policy Board

Description:

Provides the Procurement Policy Board with the authority to adopt procurement rules and clauses which comply with statutory requirements affecting government contracts such as: the payment of appropriate wages and overtime to covered employees; and the submission of certified payrolls.

THE SENATE

S.B. NO.

2824

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PROCUREMENT

 

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

SECTION 1. Section 103-55.5, Hawaii Revised Statutes, is amended to read as follows:

"[103-55.5] Wages and hours of employees on public works construction contracts. (a) Before any bidder or offeror enters into a contract [for construction of a public work project in excess of $2,000, which is] subject to chapter 104, the bidder or offeror shall affirm the bidder's or offeror's intent to comply with the requirements of chapter 104 by certifying it has received the wage rate schedule and related mandatory clauses issued in the solicitation and that:

(1) [Individuals] In accordance with and pursuant to such wage rate schedule and clauses, the contractor and all subcontractors shall pay all laborers and mechanics engaged in the performance of [the contract] construction work on the public works project job site [shall be paid]:

(A) Not less than the wages that the director of labor and industrial relations shall have determined to be prevailing for corresponding classes of laborers and mechanics employed on public works projects; and

(B) Overtime compensation at one and one-half times the basic hourly rate plus fringe benefits for hours worked on Saturday, Sunday, or a legal holiday of the State or in excess of eight hours on any other day; [and]

(2) [All] The contractor has reviewed and intends to comply with all applicable laws of the federal and state governments relating to taxation, licensing, workers' compensation, unemployment compensation, temporary disability benefits, prepaid healthcare entitlements, payment of wages, and safety [shall be fully complied with.]; and

(3) The contractor shall incorporate all such requirements into its subcontracts with any subcontractors to be engaged in construction work on the public works project under the contract.

(b) [No contract for construction of any public work project in excess of $2,000 shall be granted unless all the conditions of this section are met.] The procurement policy board shall develop and issue clauses to implement each of the requirements of chapter 104 and the implementing rules issued by the director of the labor and industrial relations. The procurement policy board shall further adopt rules that require contracting agencies (1) to physically insert the current wage rate schedule and each of the mandatory clauses into each solicitation and contract subject to chapter 104; and (2) periodically modify the contract to adjust prevailing rates to be paid laborers and mechanics as determined by the director of labor and industrial relations. Such rules shall also provide for the certification requirement of this section to be inserted in every solicitation and contract subject to chapter 104 and direct that each bidder or offeror shall submit the certification required under this chapter in its bid or best and final offer for award of the public works project contract.

(c) It shall be the duty of the governmental contracting agency awarding [the] any contract [for construction of a public work project in excess of $2,000] subject to chapter 104 to [enforce] comply with the requirements of this section[.] and the rules and procedures implementing such requirements.  The procurement policy board shall adopt procedural rules providing for a right of interested parties to protest to the director of the department of labor and industrial relations the failure of any contracting agency to fulfill the requirements of chapter 104 and all implementing procurement rules and clauses issued pursuant to this section. The right of protest shall include a mandatory stay of award for protests filed prior to contract award and stay of contract closure for protests filed after contract award. The protest procedures shall provide for prompt and final decision by the director of labor and industrial relations on all questions concerning contracting agency compliance with chapter 104."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon approval.

INTRODUCED BY:

_____________________________

BY REQUEST