STAND. COM. REP. NO. 1005-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2987
                                     S.D. 1
                                     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 S.B. No. 2987,
S.D. 1, entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to amend section 103-32.1,
Hawaii Revised Statutes (HRS), to require equal retention rates
on State projects for subcontractors who possess a valid
performance and payment bond or other mutually agreeable form of
collateral.

     Testimony in support of this measure was submitted by the
Plumbers/Fitters Union Local 675.

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

     Your Committee finds that this measure takes an important
step in providing equity for subcontractors in their relationship
with general contractors relative to the amount withheld in the
progress of their performance on a construction project.


 
 
                                 STAND. COM. REP. NO. 1005-00
                                 Page 2

 
     Your Committee has amended section one of this measure by
replacing its contents with the substantive language of section
one of H.B. No. 2877, H.D. 1, that was reported from your
Committee on Consumer Protection and Commerce earlier this
session.

     Your Committee has also amended HRS section 103-32.1(b) of
this measure to reflect amendments agreed upon by a task force of
general contractors, subcontractors, and other representatives of
the construction industry.

     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 S.B. No.
2987, S.D. 1, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as S.B. No. 2987, S.D.
1, 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