STAND. COM. REP. NO. 1133

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 675
                                     S.D. 1
                                     H.D. 1




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 S.B. No. 675, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CONTRACTOR'S LICENSES,"

begs leave to report as follows:

     The purpose of this bill is to require a state contracting
license for federal construction projects in Hawaii, to the
extent allowed under federal law.

     Testimony in support of this bill was submitted by the
Department of Commerce and Consumer Affairs, the Hawaii State
Teachers Association, the Building Industry Association of
Hawaii, the Subcontractors Association of Hawaii, and the
Contractors' Association of Kaua'i.

     Your Committee notes that this bill is similar in general
purpose and intent to H.B. No. 139, H.D. 1, "A BILL FOR AN ACT
RELATING TO FEDERAL CONSTRUCTION".

     Your Committee has amended this bill by deleting its
substance, and inserting therefor, the substance of H.B. No 139,
H.D. 1, which replaces the definition of "contractor" in section
444-1, Hawaii Revised Statutes (HRS), with a new definition of
"local resident" in section 103D-104, HRS.  As amended, this bill
promotes the awarding of federal construction contracts in Hawaii
by defining "local resident" in the State's Procurement Code for
use by the federal defense agencies awarding these contracts.

 
 
                                 STAND. COM. REP. NO. 1133
                                 Page 2

 
   
     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 S.B. No. 675, S.D. 1, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 675, S.D. 1, H.D. 1, and be referred to the
Committee on Consumer Protection and Commerce.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair