Report Title:

Prevailing Wage; Education; Hawaii 3R's Program

Description:

Exempts contractors, consultants, and their employees hired on a project funded by the Hawaii 3R's Program from the state prevailing wage law, if the work provided is at no cost or at a reduced rate.

THE SENATE

S.B. NO.

2839

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HAWAII 3RS.

 

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

SECTION 1. The backlog of school repair and maintenance continues to be an issue of great concern for the schools and the legislature. In a continuing effort to mitigate this concern, the Hawaii 3Rs program has completed repair and maintenance projects through innovative programs, which were intended to help schools by organizing efforts and community support. This support is largely based on volunteer efforts by individuals and community members to give back to the schools through volunteerism, donations, and reduced-rate services. When the work requires specialized skills beyond the efforts of available human resources, the schools may hire contractors, consultants, and their employees to complete a portion of the work.

In the spirit of helping the schools, it is the intent of this Act to provide an exception to the prevailing wage law for specialized work for the Hawaii 3Rs program, which would enable contractors or consultants to provide free or reduced rate services.

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

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

(2) Department of education projects funded under the Hawaii 3R's school repair and maintenance fund in section 302A-1502.4; provided that all contractors, consultants, and any of their employees who would otherwise be subject to this chapter that are hired for such projects shall provide their services at no cost or reduced rates.

For the purposes of this subsection:

"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 any person or entity that causes either directly or indirectly the building or development of a public work.

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

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

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

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________