STAND. COM. REP. NO. 624

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1338
                                     




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

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 1338 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide that:

     (1)  The amount that a contractor retains from a
          subcontractor cannot exceed 5% of the subcontractor's
          contract price; and

     (2)  This provision shall also apply to a subcontractor who
          sub-subcontracts work.

     Testimony in support of this bill was submitted by the
Plumbing and Mechanical Contractors Association of Hawaii, Alakai
Mechanical Corporation, the Painting and Decorating Contractors
Association of Hawaii, the Subcontractors Association of Hawaii,
Honolulu Plumbing Co., Ltd., and the Sheet Metal Contractors
Association.
 
     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 1338 and recommends that it pass
Second Reading and be referred to the Committee on Finance.


 
 
 
                                 STAND. COM. REP. NO. 624
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair