CONFERENCE COMMITTEE REPORT NO.131

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 122
                                  H.D. 2
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 122, H.D. 2, S.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO PUBLIC CONTRACTS," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to establish penalties for
failure of a contractor to pay a subcontractor promptly for a
public contract and prohibit the State from procuring with
unlicensed privately-operated group living facilities.

     Your Committee on Conference has amended this measure by:
 
     (1)  Deleting the graduated penalties section for failure to
          pay subcontractor promptly and inserting language that
          requires the Comptroller to adopt rules necessary to
          implement this measure, including establishing a system
          of graduated penalties with monetary fines, payment of

 
 
                            CONFERENCE COMMITTEE REPORT NO.131
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          interest, and debarment for noncomplying contractors,
          by the convening of the 2000 regular session; 

     (2)  Deleting the language on licensed group living
          facilities and replacing it with language that:

          (A)  Allows for a public informational hearing,
               pursuant to chapter 91, Hawaii Revised Statutes,
               prior to the procurement for services for group
               living facilities in communities where group
               living facilities are located;

          (B)  Requires State contracts for the procurement of
               group living facilities to contain operational
               standards to be monitored by the contracting
               agency; and 

          (C)  Changes the effective date of the group living
               facilities section to January 1, 2000; and 

     (3)  Making technical, nonsubstantive changes for clarity
          and style.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 122, H.D. 2, S.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 122, H.D. 2, S.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
ROD TAM, Chair                     ROBERT N. HERKES, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
COLLEEN HANABUSA, Member           DENNIS A. ARAKAKI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
WHITNEY ANDERSON, Member           BOB NAKASONE, Co-Chair

 
                            CONFERENCE COMMITTEE REPORT NO.131
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                                   ______________________________
                                   NATHAN SUZUKI, Member
                                   
                                   
                                   
                                   ______________________________
                                   JIM RATH, Member