STAND. COM. REP. NO. 1630

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.R. No. 16
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.R.
No. 16, S.D. 1, entitled:

     "SENATE RESOLUTION REQUESTING HAWAII'S CONGRESSIONAL
     DELEGATION TO REQUIRE FEDERAL CONTRACTING OFFICERS TO ADHERE
     TO FEDERAL LAWS THAT ARE DESIGNED TO IMPROVE EMPLOYMENT
     CONDITIONS IN HAWAII WHEN UNEMPLOYMENT RATES ARE HIGHER THAN
     THE NATIONAL AVERAGE,"

begs leave to report as follows:

     The purpose of this Resolution is to request Hawaii's
congressional delegation to do what is necessary to require
federal contracting officers to adhere to federal laws designed
to alleviate unemployment in Hawaii when Hawaii's unemployment
rates are higher than the national average.

     Your Committee finds that in 1986, the United States
Congress instituted a policy requiring that when the unemployment
rate in Hawaii exceeds the national rate of unemployment,
contractors of federal defense construction projects in Hawaii
must employ Hawaii residents capable of performing the contract.

     Your Committee nonetheless finds that defense contractors
prefer to hire nonresident individuals who are willing to work
for less than resident individuals.  This tendency impairs the
ability of resident contractors to compete on an equal footing

 
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with nonresident contractors while maintaining the high quality
employee benefits required under Hawaii law.

     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 concurs with the intent and purpose of S.R. No. 16,
S.D. 1, and recommends its adoption.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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