STAND. COM. REP. NO. 2410

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2132
                                        S.D. 1



Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Transportation and Intergovernmental
Affairs and Government Operations and Housing, to which was
referred S.B. No. 2132 entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC PROCUREMENT
     CODE,"

beg leave to report as follows:

     The purpose of this measure is to define the terms state
contractor, state subcontractor, and state resident and increase
the bid preference for state contractors.

     Testimony in support of this measure was received from the
Construction Industry Legislative Organization, Inc., General
Contractors Association of Hawaii, Hawaii Electricians Market
Enhancement Program Fund, and American Friends Service Committee.
Testimony recommending that this measure be held was received
from the Department of Accounting and General Services and the
State Procurement Office.

     Your Committees find that this measure will give local
workers preference with local government work contracts and
supports this measure.  Your Committees recognize the concern
raised by the State Procurement Office, regarding the confusion
of who is a state contractor or subcontractor, but find that this
information can be obtained through an affidavit provided by the
contractor or subcontractor to the State Procurement Office. 


 
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                                   STAND. COM. REP. NO. 2410
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     Your Committees have amended this measure by replacing the
language "Hawaii resident income tax" with the language "Hawaii
state income tax." 

     As affirmed by the records of votes of the members of your
Committees on Transportation and Intergovernmental Affairs and
Government Operations and Housing that are attached to this
report, your Committees are in accord with the intent and purpose
of S.B. No. 2132, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as S.B. No. 2132,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Transportation
                                   and Intergovernmental Affairs
                                   and Government Operations and
                                   Housing,



____________________________       ______________________________
ROD TAM, Chair                     CAL KAWAMOTO, Chair

 
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