Bill Text: HI SB687 | 2010 | Regular Session | Introduced
Bill Title: Procurement; Bid Protest; Inadvertent Errors; Administrative Proceedings
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB687 Detail]
Download: Hawaii-2010-SB687-Introduced.html
Report Title:
Procurement; Responsible Construction Contractor Law
Description:
Enacts the responsible construction contractor law for government procurements of construction projects.
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THE SENATE |
S.B. NO. |
687 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature find that the system of awarding of contracts for public construction under chapter 103, Hawaii Revised Statutes, and for public procurement purchases under chapter 103D, Hawaii Revised Statutes, needs to be improved by requiring a thorough examination of a prospective contractor's record of compliance with the state labor laws. The legislature is concerned that contractors who have a history of violating state labor laws may gain an unfair advantage over other contractors who comply with state labor laws in the bid process.
The purpose of this Act is to enact the responsible construction contractor law.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
RESPONSIBLE CONSTRUCTION CONTRACTOR LAW
§ -A Applicability. (a) This chapter shall apply to public works contracts under chapter 103 and to procurements for construction under chapter 103D, if the general contract amount is $100,000 or more and to any subcontract of $25,000 or more in connection with any general contract.
(b) This chapter shall not apply to employees covered by a collective bargaining agreement under chapter 89 if the applicability of this chapter is expressly waived in the collective bargaining agreement in clear and unambiguous terms.
§ -B Definitions. As used in this chapter, the terms "contract" and "contractor", shall have the same meaning as in section 103D-104, as those terms apply to construction. The term "construction" shall have the same meaning as in section 103D-104.
§ -C Prerequisites for award of contract. (a) A contractor who submits a bid for a contract for construction shall show proof under subsection (c) to the comptroller or county counterpart for contracts under chapter 103 or to the procurement officer for contracts under chapter 103D, as a prerequisite to being awarded a construction contract; provided that this subsection shall be deemed to be a provision of any contract between the contractor and subcontractor.
(b) A subcontractor who subcontracts with a contractor under subsection (a), for a subcontract for construction shall show proof under subsection (c) to the comptroller or county counterpart for contracts under chapter 103 or to the procurement officer for contracts under chapter 103D, as a prerequisite to being awarded a subcontract; provided that the contractor shall be primarily responsible for presentation of the show of proof under this subsection; and provided further that this subsection shall be incorporated by reference in any contract between the contractor and subcontractor.
(c) A contractor or subcontractor, as applicable, shall comply with the following prerequisites:
(1) Maintain and participate in a bona fide apprenticeship program under chapter 372, with regards to each trade or occupation fitting for apprenticeship that:
(A) Is involved in the particular construction project;
(B) Is approved by the department of labor and industrial relations; and
(C) Abides by journeyman ratio for each trade as required for the performance of the contract.
(2) Comply with the requirements under section 104-2 with regard to prevailing wages;
(3) Furnish, at the expense of the contractor or subcontractor, as applicable, insurance for hospitalization, medical, and prescription drug benefits for all individuals employed on the project;
(4) Maintain during the period of the contract or subcontract, as applicable, workers' compensation insurance under chapter 386 for all individuals employed on the project;
(5) Commit to hiring Hawaii residents to compose not less than eighty per cent of the workforce on the project; provided that the department of labor and industrial relations shall determine those trades in a shortage category in this State, in which case this paragraph shall not apply to shortage category trades; and provided further that those firms that satisfy this paragraph shall be entitled to an adjustment in the bid amount by subtracting thereto per cent;
(6) Provide its employees with a fair and neutral process for resolving work-related issues, not including forcing the employee to waive statutory remedies and rights; and
(7) Be appropriately licensed.
§ -D Compliance duration; compliance officer. Each contractor and subcontractor shall:
(1) Comply with section -C for the entire duration of the contract of construction; and
(2) Certify compliance with section ‑C, under oath, by an officer of the contractor and subcontractor, to the comptroller, or county counterpart, or procurement officer, as applicable, on a monthly basis.
§ -E Failure to comply; sanctions. A contractor or subcontractor under this chapter who fails to comply with section -C, shall be subject to any of the following sanctions:
(1) Temporary suspension of work on the project until there is compliance;
(2) Withholding of payment on the contract or subcontract, as applicable, until there is compliance;
(3) Permanent disqualification from any further work on the project;
(4) Recovery by the State or county, as applicable, of any moneys expended on the contract or subcontract, as applicable; and
(5) Proceedings for debarment or suspension under section 103D-702."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 4. In codifying this Act, the revisor shall substitute appropriate section numbers for the letters used in section 2 of this Act.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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