Bill Text: HI SB2412 | 2012 | Regular Session | Amended


Bill Title: Construction Contracts; Subcontractors and Materialmen; Payments

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Passed) 2012-07-10 - (S) Act 260, 7/6/2012 (Gov. Msg. No. 1363). [SB2412 Detail]

Download: Hawaii-2012-SB2412-Amended.html

 

 

STAND. COM. REP. NO.  1605-12

 

Honolulu, Hawaii

                , 2012

 

RE:   S.B. No. 2412

      S.D. 2

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 2412, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO CONTRACTS,"

 

beg leave to report as follows:

 

     The purpose of this measure is to promote the prompt payment of subcontractors on both government and private-sector construction projects by, among other things:

 

     (1)  Adopting provisions that encourage timely payments to subcontractors; and

 

     (2)  Providing for interest penalties for late payments.

 

     The Plumbers and Fitters Union, Local 675, and Ironworkers Stabilization Fund supported this bill.  The Contractors License Board; Department of Design and Construction of the City and County of Honolulu; Department of Budget and Fiscal Services of the City and County of Honolulu; Hawaiian Electric Company; Hawaii Electric Light Company; Maui Electric Company; Building Industry Association of Hawaii; General Contractors Association of Hawaii; S&M Sakamoto, Inc.; King & Neel, Inc.; LYZ, Inc.; Healy Tibbitts Builders, Inc.; Lindemann Construction Inc.; and Tomco Corp. opposed this measure.

 

     After careful consideration, your Committees have amended this bill by, among other things:

 

     (1)  Deleting the provisions relating to performance bonds;

 

     (2)  Deleting the provisions relating to interest on delayed payments of periodic and final payments to subcontractors, after receipt of same by contractors;

 

     (3)  Deleting the provisions requiring contractors to fully pay subcontractors who complete 100 percent of their subcontracts, under certain circumstances;

 

     (4)  Deleting the provisions relating to the percentage of retainage on payments to the subcontractor by the contractor;

 

     (5)  Deleting the provisions relating to the owner, contractor, and subcontractor concerning allowable partial payment, limitations of retainage, interest on delayed final payment, notice of completion, and acceptance of work;

 

     (6)  Deleting provisions relating to the publishing of the notice of completion of the contracted-for improvements;

 

     (7)  Requiring the contractor to pay the subcontractor within ten days of receiving a qualifying invoice from the subcontractor and providing for interest at the rate of one and one-half percent on delinquent payments;

 

     (8)  Changing the effective date to July 1, 2012; and

 

     (9)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2412, S.D. 2, H.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2412, S.D. 2, H.D. 2.

 


Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

 

 

____________________________

GILBERT KEITH-AGARAN, Chair

 

____________________________

ROBERT N. HERKES, Chair

 

 

 

 

 

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