Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 17 entitled:

begs leave to report as follows:

The purpose of this bill is to give the Governor certain temporary powers to provide immediate relief to facilitate continuity of business activities and services, minimize employee layoffs, and prevent endangerment of public health, safety, or welfare, during a period of economic emergency from September 11, 2001, to June 30, 2002. Specifically, this bill provides the Governor with the power to:

The Department of Land and Natural Resources, Visitor Industry Coalition, Department of Transportation, Attorney General, Building Industry Association, Chamber of Commerce of Hawaii, and a private citizen testified in support of this measure. Common Cause Hawaii, DFS Hawaii, Airport Concessionaires Committee, Travelex/Thomas Cook Foreign Exchange, and a private citizen supported the intent of the measure, with amendments. Greeters of Hawaii, Island Shoppers, Inc., HMSHost Corporation, Bank of Hawaii, The Business Center, and the Hawaii Business Roundtable commented on this bill.

The Hawaii Republican Party, Air Line Pilots Association, and Na Loio-Immigrant Rights and Public Interest Legal Center opposed this measure.

The events of September 11^th not only had an impact on a national level, but also affected the people of Hawaii, both directly and indirectly. As a result of these terrible acts, there has been a downturn in the national economy, as well as a dramatic decline in both the number of scheduled flights and the number of tourists coming to Hawaii. This has had a tremendous effect on Hawaii's families and businesses, as both tourism and non-tourism related industries have faltered, forcing many of Hawaii's people to file for unemployment.

Your Committee feels it is imperative that the Governor be granted special powers during this time of economic turmoil to reduce the bureaucracy and expedite necessary changes to support Hawaii's people and businesses in an effort to provide quick social and economic relief.

History has taught us that when tourism falters, bolstering the construction industry is the quickest remedy. The Governor's call for this special session focused on accelerating public works projects to do just that. It is your Committee's intent that the Governor exercise the emergency powers to expedite such projects and to give preference to state residents for the limited jobs currently available in the State.

Your Committee strongly believes that jobs should be directed to contractors who can affirm that at least seventy-five percent of their workforce consists of Hawaii residents -- persons who have lived continuously in Hawaii for six months prior to the declaration of the economic emergency, and have not established residency in another state by living continuously therein or filing tax returns in the jurisdiction during that time. Awarding contracts to companies that are in good standing under our state laws, pay state taxes, and employ large numbers of state residents is an appropriate and necessary use of emergency powers. Fair treatment can be assured by disqualifying contractors who falsify an affirmation; and by public posting of the names of all contractors, a brief description of the contract, and the amount of each awarded.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 17 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.