THE SENATE

S.B. NO.

2724

TWENTY-EIGHTH LEGISLATURE, 2016

 

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 the purpose of chapter 104, Hawaii Revised Statutes, is to ensure that prevailing wages are paid to, and reasonable work hours are required of, laborers and mechanics on all public work projects where the contract for construction of the public work project exceeds $2,000.

The legislature also finds that there have been instances where laborers and mechanics performing construction on state land have not been paid prevailing wages in accordance with chapter 104, Hawaii Revised Statutes.

The legislature further finds that the failure to pay prevailing wages to laborers and mechanics performing construction on state land is contrary to the intent of chapter 104, Hawaii Revised Statutes.

It is the intent of the legislature that all development, construction, renovation, and maintenance upon state land or the use of state land to secure financing for development, construction, renovation, or maintenance shall constitute a "public work" to the extent the term is used in chapter 104, Hawaii Revised Statutes.

The purpose of this Act is to ensure that all contracts in excess of $2,000 for construction upon state land, unless otherwise exempt, is subject to the requirements of chapter 104, Hawaii Revised Statutes.

SECTION 2. Section 104-1, Hawaii Revised Statutes, is amended by amending the definition of "public work" to read as follows:

""Public work" means any project, including development of any housing pursuant to section 46-15 or chapter 201H and development, construction, renovation, and maintenance related to refurbishment of any real or personal property, where [the]:

(1) The funds or resources required to undertake the project are to any extent derived, either directly or indirectly, from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal taxes[.];

(2) The project for development, construction, renovation, or maintenance is done on public lands regardless of whether or not the work is paid for from funds or resources derived from public revenues of the State or any county, or from the sale of securities or bonds whose interest or dividends are exempt from state or federal law; or

(3) Public lands are secured as collateral or used to obtain financing for the development, construction, renovation, or maintenance of the project."

SECTION 3. Section 104-2, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) This chapter shall apply to every contract in excess of $2,000 for construction of a public work project to which a governmental contracting agency is a party; provided that this chapter shall not apply to [experimental]:

(1) Experimental and demonstration housing developed pursuant to section 46-15 [or housing];

(2) Housing developed pursuant to chapter 201H if the cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation[.];

(3) Projects for the development, construction, renovation, or maintenance of a single-family dwelling or multi-family unit on public lands contracted for by a private lessee of the State where the work on a per dwelling or unit basis is de minimis in nature, and in no event greater than $100,000 in value; or

(4) Projects for the development, construction, renovation, or maintenance of farm dwellings and related accessory improvements on state-owned agricultural zoned property or within a state agricultural park facility if the total cost of the project is less than $500,000.

For the purposes of this [subsection:] section:

"Contract" includes but is not limited to any agreement, purchase order, or voucher in excess of $2,000 for construction of a public work project.

"Governmental contracting agency" includes[:

(1) Any] any person or entity that causes either directly or indirectly the building or development of a public work[; and

(2) Any public-private partnership.] or holds title to public lands.

"Party" includes eligible bidders for and eligible developers of any public work and any housing under chapter 201H; provided that this subsection shall not apply to any housing developed under section 46-15 or chapter 201H if the entire cost of the project is less than $500,000 and the eligible bidder or eligible developer is a private nonprofit corporation.

"Private lessee" includes any person or entity, other than a federal, state, or county agency or instrumentality, that holds a leasehold interest in public lands.

"Public lands" means all lands or interests therein in the State, classified as government or crown lands prior to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including lands accreted after May 20, 2003, and not otherwise awarded, submerged lands, and lands beneath tidal waters that are suitable for reclamation, together with reclaimed lands that have been given the status of public lands under chapter 171; and shall also include lands to which any state or county agency, department, branch, or authority holds title."

2. By amending subsections (g) and (h) to read:

"(g) For any public work project that is subject to this chapter but not directly caused by a governmental contracting agency, including but not limited to a public work project caused, initiated, or contracted for by a private lessee of the State, or the private lessee's contractor, for the development, construction, renovation, or maintenance of any real or personal property located on public lands, the [director] state or county department, agency, or public corporation holding title to the public lands upon which the property is located shall be responsible for enforcement of this chapter, including the collection and maintenance of certified copies of all payrolls that are subject to this chapter. The director shall adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

(h) When:

(1) The department of budget and finance enters a project agreement with a project party, as those terms are defined in chapter 39A, to finance or refinance a project with the proceeds of special purpose revenue bonds;

(2) The private lessee of public lands enters into a contract for the development, construction, renovation, or maintenance of any real or personal property where the public work project is located on public lands;

[(2)] (3) The project party or contractor of the public work project has entered into a collective bargaining agreement with a bona fide labor union governing the project party's or contractor's workforce; and

[(3)] (4) The collective bargaining agreement has been properly submitted to the director under section 104-34,

the terms of the collective bargaining agreement and associated provisions shall be deemed the prevailing wages and terms serving as the basis of compliance with this chapter for work on the [project by the project party's] public work project by the contractor's workforce; provided that this subsection does not affect the [director's] state or county department's, agency's, or public corporation's enforcement powers contained in subsection (g)."

SECTION 4. Section 171-35, Hawaii Revised Statutes, is amended to read as follows:

"171-35 Lease provisions; generally. Every lease issued by the board of land and natural resources shall contain:

(1) The specific use or uses to which the land is to be employed;

(2) The improvements required; provided that a minimum reasonable time be allowed for the completion of the improvements;

(3) Restrictions against alienation as set forth in section 171-36;

(4) The rent, as established by the board or at public auction, which shall be payable not more than one year in advance, in monthly, quarterly, semiannual, or annual payments;

(5) A provision requiring that all contracts for construction on the land be subject to the requirements of chapter 104 imposed upon public work projects;

[(5)] (6) Where applicable, adequate protection of forests, watershed areas, game management areas, wildlife sanctuaries, and public hunting areas, reservation of rights-of-way and access to other public lands, public hunting areas, game management areas, or public beaches, and prevention of nuisance and waste; and

[(6)] (7) Such other terms and conditions as the board deems advisable to more nearly effectuate the purposes of the state constitution and of this chapter."

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Public Works; Wages

 

Description:

Requires contracts for construction on public lands to comply with wage and hour requirements set forth in chapter 104, HRS.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.