STAND. COM. REP. NO. 1688
                                 Page 1

 
                                 STAND. COM. REP. NO. 1688

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 59
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
59, S.D. 1, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to pay subcontractors in an
efficient and fair manner by limiting the amount a contractor may
withhold from a subcontractor for retainage to five percent of
the subcontract.

     The Subcontractors Association of Hawaii, the Plumbing and
Mechanical Contractors Association of Hawaii, and SMAC Hawaii,
Inc., testified in support of this measure.

     The Department of Accounting and General Services, the
General Contractors Association of Hawaii, the Building Industry
Association of Hawaii, Nordic Construction, Ltd., Jas. W. Glover,
Ltd., Hidano Construction, Inc., Unlimited Construction Services
Incorporated, Kaikor Construction Associates, Inc., Walter Y.
Arakaki General Contractor, Inc., the AIA-Hawaii State Council,
Paul Louie and Associates, Inc., Armstrong Builders, Ltd., QMC
Corp., Hallmark Construction Corporation, Teval Corp., Designer
Built Systems, Inc., Healy Tibbitts Builders, Inc., Royal
Contracting Co., Ltd., Willocks Construction Corporation, S&M
Sakamoto, Inc., and Shini Construction, Inc., commented on this
measure.


 
                                 STAND. COM. REP. NO. 1688
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
59, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair