STAND. COM. REP. NO. 678

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 139
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 139 entitled: 

     "A BILL FOR AN ACT RELATING TO FEDERAL CONSTRUCTION,"

begs leave to report as follows:

     The purpose of this bill is to enable local contractors and
laborers to benefit from federal contracts by defining "local
resident" in the Hawaii Public Procurement Code.

     Testimony in support of this bill was submitted by the
Plumbers and Fitters Local 675, the Hawaii Building and
Construction Trades Council, AFL-CIO, the International
Brotherhood of Electrical Workers, Local Union 1186, the Hawaii
Island Contractors Association, and the Hawaii Operating
Engineers Industry Stabilization Fund. 

     Testimony in support of the intent of this bill was
submitted by the State Procurement Office and the General
Contractors Association of Hawaii.  The Department of Taxation,
the Department of Business, Economic Development, and Tourism
(DBEDT), and the Construction Industry Legislative Organization
commented on the measure.

     Based on the testimony presented and the concerns expressed,
your Committee finds that the definition of "local resident" is
important for local construction firms and workers to benefit
from federal construction projects.  However, your Committee is
aware that such a definition might exclude some of the local
firms or workers that this bill intends to benefit; and therefore
your Committee respectfully requests that the Committee on

 
                                 STAND. COM. REP. NO. 678
                                 Page 2

 
Finance continue deliberation on this matter and consider
amendments to the bill, particularly proposed language by DBEDT.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 139 and recommends that it pass
Second Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair