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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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. 2734

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2412

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2412, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO CONTRACTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to implement measures that encourage timely payments to subcontractors for work performed on construction projects.

 

     Written comments in support of this measure were submitted by the Ironworkers Stabilization Fund.  Written comments in opposition to this measure were submitted by the Department of Design and Construction, City and County of Honolulu.

 

     Your Committee finds that delayed payments to subcontractors for work performed on private and government construction projects threaten the economic viability of subcontractors and materialmen.  Your Committee finds that the provisions in this measure, such as the delivery of a performance bond and interest penalties on unpaid balances, will encourage project owners and contractors to make prompt payment to subcontractors for the work that they performed on the project.

 

     Your Committee has amended this measure by making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2412, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2412, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DAVID Y. IGE, Chair