THE SENATE	S.B. NO.	1062
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO WASTE MANAGEMENT.

 

 

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

 

     SECTION 1.  The legislature finds that construction projects funded by public moneys produce extensive construction waste.  State law prohibits the disposal of more than one cubic yard of solid waste anywhere other than a permitted solid waste management system, with certain exceptions.  However, the legislature has discovered that despite this prohibition, construction waste is sometimes disposed of in an unauthorized manner.  For example, the Honolulu Star-Advertiser reported on November 13, 2017, that the department of education and several contractors were fined $1,450,000 by the department of health for violating solid waste laws during the renovation of Radford high school's track field in 2016.  The department of health based its decision on the illegal removal, transportation, and disposal of contaminated soil and concrete waste from the school construction site to a private residence in Kaneohe, a construction site in Kapolei, and an unpermitted concrete recycling facility in Kailua.  Approximately one hundred thirty truckloads of hazardous soil and concrete were dumped.

     The legislature further finds that hazardous waste material from construction sites have reportedly been dumped onto land that drains into Kawainui marsh.  These kinds of dumps are difficult to detect when they occur.

     The purpose of this Act is to require the statement for services performed in a public works contract to include a receipt from a licensed waste management facility or appropriate farm lot or construction site that verifies that the waste was properly received and lawfully disposed of in the appropriate, licensed waste facility, farm lot, or construction site before full payment is made.

     SECTION 2.  Section 103-10, Hawaii Revised Statutes, is amended to read as follows:

     "§103-10  Payment for goods and services.  (a)  [Any] Subject to the requirements of subsection (e), any person who renders a proper statement for goods delivered or services performed, pursuant to contract, to any agency of the State or any county, shall be paid no later than thirty calendar days following receipt of the statement or satisfactory delivery of the goods or performance of the services.  [In the event] If circumstances prevent the paying agency from complying with this section, the person shall be entitled to interest from the paying agency on the principal amount remaining unpaid at a rate equal to the prime rate for each calendar quarter plus two per cent, commencing on the thirtieth day following receipt of the statement or satisfactory delivery of the goods or performance of the services, whichever is later, and ending on the date of the check.  As used in this subsection, "prime rate" means the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter.

     (b)  This section shall not apply in those cases where delay in payment is due to:

     (1)  A bona fide dispute between the State or any county and the contractor concerning the services or goods contracted for;

     (2)  A labor dispute;

     (3)  A power or mechanical failure;

     (4)  Fire;

     (5)  Acts of God; or

     (6)  Any similar circumstances beyond the control of the State or any county.

Where the time of payment is contingent upon the receipt of federal funds, or federal approval, the solicitation of bids for contracts shall clearly state that payment is contingent upon those conditions.  If the solicitation for bids contains the warning and a contract is awarded in response to the solicitation, then interest shall not begin to accrue upon any unpaid voucher until the thirtieth day following receipt by the State or county of the contractor's statement or the thirtieth day following receipt of the federal funds or approval, whichever occurs later, and shall end as of the date of the check.

     (c)  All goods or services purchased by a state agency which are less than $25, except those purchased through the use of a state procurement card, shall be paid from the petty cash funds of the agency; provided that the comptroller may establish a higher threshold for petty cash payments and may grant exceptions to this requirement.

     (d)  Any other law to the contrary notwithstanding, the payments for goods and services obtained through use of any state or county procurement card shall be made under the terms and conditions specified in the contract under which the procurement card was established.

     (e)  Beginning July 1, 2019, in any contract with an agency of the State or a county that includes the disposal of liquid or solid waste, including but not limited to construction waste, full payment shall not be rendered unless the statement for services submitted pursuant to subsection (a) includes a receipt from a licensed waste management facility, farm lot with an approved soil and water conservation plan, or construction site with a permit to grade and fill the site or stockpile fill on site that verifies that the waste was properly received and lawfully disposed of in an appropriate, licensed waste facility, farm lot, or construction site and shall include:

     (1)  The number of truck loads accepted by the facility;

     (2)  The type of material received;

     (3)  The address of the site and name of the agent authorized to accept the disposal; and

     (4)  Reference of the holder, farm, or company of the farm soil and water conservation plan or construction permit number, as applicable.

If required pursuant to a contract or executed agreement, the state or county agency may make partial payment to the contractor without a receipt showing proper waste disposal from a licensed waste management facility, farm lot, or construction site and before any dumping of waste.  A person who knowingly submits a receipt that is altered or falsified in any manner for the purposes of this subsection shall be subject to section 708‑872."

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

     SECTION 5.  This Act shall take effect on July 1, 2020.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Disposal of Liquid or Solid Waste; Contracts; Payments

 

Description:

Requires that all state and county agency contractors that dispose of liquid or solid waste provide a receipt that the waste was received and disposed of at a licensed facility or an appropriate farm or construction site before full payment is made for those contractual services.  Allows for partial payment to be made without a receipt and prior to any dumping of waste.  Prohibits alteration or falsification of receipts.

 

 

 

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