Exempts subcontractors who comprise less that 5% of the total
project from rate of wage provisions.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 104-2, Hawaii Revised Statutes, is
 2 amended by amending subsection (a) to read as follows:
 3      "(a)  Except for subcontractors who comprise less than five
 4 per cent of the total project and as otherwise provided, the
 5 specifications of every contract in excess of $2,000 to which a
 6 governmental contracting agency is a party, for construction of
 7 any public work, shall state the minimum wages that shall be paid
 8 to the various classes of laborers and mechanics engaged in the
 9 performance of the contract on the job site, and that the minimum
10 wages shall be periodically increased during the performance of
11 the contract in an amount equal to the increase in the prevailing
12 wages for those kinds of work as periodically determined by the
13 director of labor and industrial relations; provided that this
14 subsection shall be applied individually and on a case by case
15 basis to each public work project, including development of
16 housing under section 46-15 or chapter 201G, for which a contract
17 is required under this section, and that specific terms of each
18 contract shall be mutually exclusive of the terms of any other
19 public work contract; and provided further that this subsection
20 shall not apply to experimental and demonstration housing

Page 2                                         929         
                                     H.B. NO.           

 1 developed pursuant to section 46-15 or housing developed pursuant
 2 to chapter 201G if the cost of the project is less than $500,000
 3 and the eligible bidder or eligible developer is a private
 4 nonprofit corporation.
 5      For the purposes of this subsection:
 6      "Governmental contracting agency" includes any person or
 7 entity that causes either directly or indirectly the building or
 8 development of a public work.
 9      "Party" includes eligible bidders for and eligible
10 developers of any public work and any housing under chapter 201G;
11 provided that this subsection shall not apply to any housing
12 developed under section 46-15 or chapter 201G if the entire cost
13 of the project is less than $500,000 and the eligible bidder or
14 eligible developer is a private nonprofit corporation.
15      "Public work" means any project, including development of
16 any housing pursuant to section 46-15 or chapter 201G, and
17 development, construction, renovation, and maintenance related to
18 refurbishment of any real or personal property, where the funds
19 or resources required to undertake the project are to any extent
20 derived either directly or indirectly from public revenues of the
21 State or any county, or from the sale of securities or bonds
22 whose interest or dividends are exempt from state or federal
23 taxes."

Page 3                                         929         
                                     H.B. NO.           

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