REPORT TITLE:
Penalty Provision

DESCRIPTION:
Clarifies existing penalty provisions applied to contractors who
violate Chapter 104, HRS, which deals with the wages and hours of
employees on public works.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.96         
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PENALTIES.



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

 1      SECTION 1.  Section 104-24, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  Where a second or third violation occurs, whether on
 
 4 the same contract or another, within two years of the first
 
 5 violation, the director[,] shall serve a written complaint on the
 
 6 person or the firm involved.  If, after proper notice and
 
 7 opportunity for hearing, the director finds that the person or
 
 8 firm has knowingly violated this chapter, the rules adopted
 
 9 thereunder, or the terms of a contract subject to this chapter,
 
10 the director shall order the person or firm in violation:
 
11      (1)  If it be a second violation, to pay a penalty of not
 
12           more than ten per cent of the contract amount. If this
 
13           violation was made by a subcontractor, the penalty will
 
14           be based on the portion of the contract attributable to
 
15           the subcontractor's work; or
 
16      (2)  If it be a third violation, to be suspended from
 
17           entering into new contracts with governmental agencies
 
18           as prescribed in section 104-25."
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      SECTION 2.  Section 104-25, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  The director shall suspend a person or firm from
 
 4 [doing any work] entering into new contracts on any public work
 
 5 of a governmental contracting agency for a period of three years
 
 6 if the person or firm:
 
 7      (1) Commits a third violation of this chapter within two
 
 8          years from the date of the first violation;
 
 9      (2) Fails to make the person's or firm's employees whole for
 
10          wages or overtime pay due under the contract; or
 
11      (3) Fails to pay any penalty assessed."
 
12      SECTION 3.  Statutory material to be repealed is bracketed.
 
13 New statutory material is underscored.
 
14      SECTION 4.  This Act shall take effect upon its approval.
 
15 
 
16                           INTRODUCED BY:_________________________