STAND. COM. REP. NO. 2199-26

Honolulu, Hawaii

, 2026

RE: S.C.R. No. 178

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred S.C.R. No. 178 entitled:

"SENATE CONCURRENT RESOLUTION URGING ALL STATE AND COUNTY AGENCIES INVOLVED IN CONSTRUCTION PROCUREMENT TO IMPLEMENT PROMPT PAYMENT TRANSPARENCY MEASURES AND EXPRESSING APPRECIATION TO THE PUBLIC WORKS DIVISION OF THE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES FOR ITS EFFORTS,"

begs leave to report as follows:

The purpose of this measure is to urge all state and county agencies involved in construction procurement to implement prompt payment transparency measures and to express appreciation to the Public Works Division of the Department of Accounting and General Services for its efforts.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services; Plumbing and Mechanical Contractors Association of Hawaii; Subcontractors Association of Hawaii; Sheet Metal Contractors Association of Hawaii; Statewide General Contracting & Construction, Inc.; Hawaii Architectural Metals & Glass Association; Tile Contractors Association of Hawaii; and Hawaii Wall & Ceiling Industry Association. Your Committee received comments on this measure from the Natural Energy Laboratory of Hawaiʻi Authority and Hawaii Housing Finance and Development Corporation.

Your Committee finds that prompt and timely payment on public construction projects is critical to maintaining fairness, efficiency, and financial stability for contractors and subcontractors. Although Act 291, Session Laws of Hawaii 2006, addressed many prompt payment issues, ongoing concerns regarding delayed progress payments and overdue retainage continue to place economic strain on contractors. Your Committee believes that expanding transparent payment tracking practices, modeled after the Public Works Division's contractor payment website, will strengthen accountability, reduce disputes, and promote equitable construction procurement practices statewide.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 178 and recommends that it be referred to your Committee on Finance.

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

____________________________

JACKSON D. SAYAMA, Chair