STAND. COM. REP. NO. 1583-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.C.R. No. 18
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Economic Development and Business
Concerns and Labor and Public Employment, to which was referred
S.C.R. No. 18, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION URGING MILITARY AND FEDERAL
     AGENCIES TO HONOR THE DEFINITION OF STATE RESIDENT FOR
     CONTRACTS,"

beg leave to report as follows:

     The purpose of this concurrent resolution is to urge
military and federal agencies to honor the definition of "state
resident" for the purpose of awarding contracts in Hawaii.

     The Military Affairs Council of the Chamber of Commerce of
Hawaii, the Hawaii Construction Industry Association, and the
General Contractors Association of Hawaii testified in support of
the measure.  The Construction Industry Legislative Organization
testified in support of the intent of the measure.

     Your Committees recognize the need for military and federal
agencies to give preference to state residents when awarding
contracts in Hawaii, as this employment preference is critical to
our State's economy.  In adopting this concurrent resolution, it
is your Committees' intent that section 8078 of the United States
Defense Appropriations Act of 1986 is applied to federal
contracts in Hawaii.  Your Committees are aware that the focus of
section 8078 is to employ local residents.  Therefore, the
inclusion of corporations, limited liability companies,
partnerships, and other business entities in the definition of

 
 
                                 STAND. COM. REP. NO. 1583-00
                                 Page 2

 
"state resident" should be ignored if it is inconsistent with the
purpose and intent of section 8078.

     Your Committees request that a copy of this committee report
be transmitted with the certified copy of this concurrent
resolution to appropriate federal and military contracting agents
as stated in the measure.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Labor and Public Employment that are attached to this report,
your Committees concur with the intent and purpose of S.C.R. No.
18, S.D. 1, and recommend its adoption.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Business
                                   Concerns and Labor and Public
                                   Employment,

                                   
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Chair         ROBERT N. HERKES, Chair