THE SENATE	S.B. NO.	2872
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PREVAILING WAGE CONTRACTOR PENALTIES.

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

     SECTION 1.  Section 104-24, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Where the department finds that a third violation of this chapter has been committed, whether on the same contract or another, within two years of the second notification of violation, the department, after proper notice and opportunity for hearing, shall order the person or firm in violation:

     (1)  To pay a penalty equal to two times the amount of back wages found due or $200 for each offense, whichever is greater; and

     (2)  To be suspended from doing any new work on any public work of a governmental contracting agency for a period of [three] five years except as provided in section 104-25(a)(2).  "New work on any public work" includes any public works project in which the suspended person or firm has not begun work at the job site as of the date of the suspension order.  The suspension shall be effective on the later of the twenty-first day after the sending of the notification of violation, or a decision has been issued pursuant to section 104-23(c)."

     SECTION 2.  Section 104-25, Hawaii Revised Statutes, is amended by amending subsection (a) and (b) to read as follows:

     "(a)  The director shall suspend a person or firm as follows:

     (1)  For a first or second violation, if a person or firm fails to pay wages found due, any penalty assessed, or both, the person or firm shall be immediately suspended from doing any work on any public work of a governmental contracting agency until all wages and penalties are paid in full;

     (2)  For a third violation, the suspension shall be as prescribed in section 104-24(c); provided that, if the person or firm continues to violate this chapter or fails to pay wages found due or any penalty assessed, or both, then the contractor shall immediately be suspended from doing any work on any public work of a governmental contracting agency for a mandatory [three-year] five-year period.  If after the [three-year] five-year suspension period the wages found due or penalties assessed are still unpaid, the suspension shall remain in force until payment is made in full; or

     (3)  For falsification of records, or for delay or interference with an investigation pursuant to section 104-22, the contractor shall be immediately suspended for a period of [three] five years.

     (b)  The director shall immediately notify the governmental contracting agency, comptroller, [and] the auditor or director of finance of the county, and in the case of a suspended subcontractor the general contractor of any suspension order issued."

     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, and shall be applicable to all construction contracts entered into after the effective date of this Act.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Prevailing Wage; Construction

Description:

Conforms all suspension penalties under the Hawaii prevailing wage law and extends suspension from three years to five years.

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