STAND. COM. REP. NO. 1408-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2987
                                     S.D. 1
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2987, 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 provide equity for
subcontractors in their relationship with general contractors
relative to the amount withheld in the progress of their
performance on a construction project by requiring equal
retention rates on state projects for subcontractors who possess
a valid performance and payment bond or another mutually
agreeable form of collateral.

     The General Contractors Association of Hawaii, the Plumbing
and Mechanical Contractors Association of Hawaii, the
Subcontractors' Association of Hawaii, and the Building Industry
Association of Hawaii testified in support of this measure.

     Your Committee has amended this measure by:

     (1)  Adding a new section providing that government agencies
          have the authority to extend concession permits for
          additional periods in the event that the premises are
          under construction, renovation, or being prepared for a
          new use; and
 

 
 
 
                                 STAND. COM. REP. NO. 1408-00
                                 Page 2

 
     (2)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     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.
2987, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2987,
S.D. 1, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair