STAND. COM. REP. NO.  638

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 32

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 32, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose of this bill is to ensure that state dollars are used to create jobs within and not outside of the United States, by prohibiting state governmental bodies from contracting with or providing economic development assistance to companies that will outsource the work to other countries.

     The Hawaii State AFL-CIO and a concerned individual testified in support of this bill.

     Current employment trends across the country include outsourcing of employment to workers from foreign countries who are paid low wages.  In fact, a recent study has indicated that the United States may lose up to 14 million jobs due to this outsourcing.

     Your Committee finds that outsourcing not only affects the employee but also affects every taxpayer in the nation because of the pressures of increased unemployment due to outsourcing placed on the social services of this country.  Ensuring that Hawaii's tax dollars are used to support the creation of jobs within our State and not overseas is a prudent approach to this problem.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 32, H.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair