STAND. COM. REP. NO. 337-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2877
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Consumer Protection and Commerce and
Labor and Public Employment, to which was referred H.B. No. 2877
entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to require that the retention
rate imposed upon subcontractors shall be equal to the retention
rate imposed upon their prime contractor by the State, provided
that the subcontractor possess a performance and payment bond or
another mutually agreeable form of collateral.

     Testimony in support of this measure was submitted by the
Building Industry Association of Hawaii, General Contractors
Association of Hawaii, Subcontractors Association of Hawaii,
Plumbing & Mechanical Contractors Association of Hawaii, Hawaiian
Surety Association, Construction Industry Legislative
Organization, Inc., and Hidano Construction, Inc. 

     Testimony in opposition to this measure was submitted by the
Hawaii Electricians Market Enhancement Program Fund.

     Your Committees find that this measure represents the
collaborative efforts of the construction industry to deal with
the issue of retainage amounts withheld on state contracts.


 
 
 
 
                                 STAND. COM. REP. NO. 337-00
                                 Page 2

 
     Your Committees have amended this measure to incorporate
technical, nonsubstantive amendments for the purposes of clarity,
consistency, and style.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Labor and
Public Employment that are attached to this report, your
Committees are in accord with the intent and purpose of H.B. No.
2877, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as H.B. No. 2877, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Consumer
                                   Protection and Commerce and
                                   Labor and Public Employment,

                                   
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Chair         RON MENOR, Chair