STAND. COM. REP. NO. 963

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.R. No. 17
                                        S.D. 1




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

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.R. No. 17 entitled:

     "SENATE RESOLUTION REQUESTING HAWAII'S CONGRESSIONAL
     DELEGATION TO URGE THE AMENDMENT OF FEDERAL ACQUISITION
     REGULATIONS TO INCORPORATE LANGUAGE IN A PRESIDENTIAL
     MEMORANDUM ENCOURAGING THE USE OF PROJECT LABOR AGREEMENTS
     IN FEDERAL CONSTRUCTION CONTRACTS,"

begs leave to report as follows:

     The purpose of this measure is to request Hawaii's
Congressional Delegation to urge the amendment of federal
acquisition regulations to incorporate language encouraging the
use of project labor agreements in federal construction
contracts.

     Testimony in support of this measure was received from
Hawaii Building and Construction Trades Council AFL-CIO, Hawaii
Electricians Market Enhancement Program Fund, Masons Union,
Plumbers and Fitters Local 675 United Association, and Hawaii
Operating Engineers Industry Stabilization Fund.

     Testimony in opposition to this measure was received from
Associated Builders and Contractors, Inc., Jas. W. Glover, Ltd.,
Contractors Association of Kauai, Willcocks Construction
Corporation, Henry's Equipment Rental & Sales, Inc., and twenty-
five individuals.


 
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     Your Committee finds that President Clinton issued a
presidential memorandum in 1997 which permitted federal agencies
to use project labor agreements on a case-by-case basis when
conditions for their use are deemed appropriate.  Project labor
agreements may now be used as an additional labor-management tool
for federal contracting agencies when those agreements serve the
federal procurement goal of economical, efficient, and timely
high quality performance.  The use of project labor agreements
helps to guarantee, among other things, efficiency, the
establishment of fair and consistent labor standards and work
rules, and stable labor-management relations.  Your Committee
finds that the use of project labor agreements for federal
construction projects in Hawaii will help stabilize Hawaii's
construction industry which is experiencing serious economic
downturns and high unemployment rates.

     Your Committee has amended this measure by making technical,
nonsubstantive changes for purposes of style.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee concurs with the intent
and purpose of S.R. No. 17, as amended herein, and recommends
that it be referred to the Committee on Ways and Means, in the
form attached hereto as S.R. No. 17, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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