REPORT TITLE:
Procurement; Prevailing Wage


DESCRIPTION:
Requires purchases under contracting law to be awarded to vendors
who pay prevailing wages.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2509
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PROCUREMENT PRACTICES.


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

 1      SECTION 1.  The legislature finds that vendors that sell
 
 2 goods and services to the government entities frequently pay
 
 3 their employees less than the prevailing industry standard wages.
 
 4 The legislature believes that this is a deceptive business
 
 5 practice that results in unjustified profit to the contractor and
 
 6 insufficient compensation to the employee.
 
 7      The purpose of this Act is to require contractors to pay the
 
 8 prevailing industry standard wage plus the costs of applicable
 
 9 fringe benefits to employees on contracts with the government.
 
10      SECTION 2.  Chapter 103D, Hawaii Revised Statutes, is
 
11 amended by adding a new section to be appropriately designated
 
12 and to read as follows:
 
13      "§103D-    Rate of wages for employees of contractors.  (a)
 
14 No procurement shall be made under this chapter from a contractor
 
15 unless the contract specifies that the contractor shall pay the
 
16 prevailing wage to the contractor's employees for purposes of the
 
17 contract.
 
18      (b)  For purposes of subsection (a), "prevailing wage" means
 
19 the standard industry hourly rate plus the costs of furnishing
 
20 applicable fringe benefits including, but not limited to, health
 

 
Page 2                                                     
                                     S.B. NO.           2509
                                                        
                                                        

 
 1 and welfare benefits, vacation benefits, and pension benefits,
 
 2 whether paid to the employee or to a third party for the benefit
 
 3 of the employee.  The prevailing wage shall be determined by the
 
 4 state department of labor and industrial relations using an
 
 5 objective standard of predominance or currency in a given
 
 6 occupation, trade, or profession, as applicable, in Hawaii, that
 
 7 reflects the wage that occurs most frequently; provided that if
 
 8 no single wage is predominant, the average wage may be used."
 
 9      SECTION 3.  New statutory material is underscored.
 
10      SECTION 4.  This Act shall take effect upon its approval.
 
11 
 
12                       INTRODUCED BY:  ___________________________