REPORT TITLE:
Procurement; Prevailing Wage


DESCRIPTION:
Requires purchases under contracting law to be awarded to vendors
who pay prevailing wages.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2509
THE SENATE                              S.B. NO.           S.D. 1
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 government entities frequently pay their
 
 3 employees less than the prevailing industry standard wages.  The
 
 4 legislature believes that this is a deceptive business practice
 
 5 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:
 

 
Page 2                                                     2509
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (1)  Health and welfare benefits, vacation benefits, and
 
 2           pension benefits, whether paid to the employee or to a
 
 3           third party for the benefit of the employee;
 
 4      (2)  At least twelve holidays;
 
 5      (3)  Sick leave; and
 
 6      (4)  Leave for family emergencies.
 
 7 The prevailing wage shall be:
 
 8      (1)  As provided in a collective bargaining agreement or
 
 9           union scale applicable to the contractor's employees;
 
10           or
 
11      (2)  One hundred twenty-five per cent of the United States
 
12           Department of Labor Employment Standards Administration
 
13           wage and hour determination under the Service Contract
 
14           Act, with the additional twenty-five per cent covering
 
15           any differences in the cost of living.
 
16      (c)  All employers shall be required to both verbally and in
 
17 writing, inform each employee as to the employees' rights and the
 
18 possibility of penalties assessed against the employer for
 
19 failing to pay prevailing wages or providing leave, or for
 
20 retaliating against the employee for reporting the employer to
 
21 the appropriate regulatory agency for violating the rights of
 
22 employees.
 
23      (d)  This section shall apply to all government contracts."
 
24      
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      SECTION 3.  New statutory material is underscored.
 
 2      SECTION 4.  This Act shall take effect upon its approval.