STAND. COM. REP. NO. 754________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 139
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


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


begs leave to report as follows:

     The purpose of this bill is to promote the awarding of
federal construction contracts in Hawaii by providing a
definition of "local resident" in the State's Procurement Code
for use by the federal defense agencies awarding these contracts.

     The General Contractors Association of Hawaii, the State
Procurement Office, and the Construction Industry Legislative
Organization, Inc., testified in support of the intent of this
bill.  The Department of Taxation commented on this bill.

     Your Committee has amended this bill by changing the term
"qualified" to "registered", which is the term more commonly used
when a foreign corporation files with the Department of Commerce
and Consumer Affairs to conduct business in Hawaii.

     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.
139, as amended herein, and recommends that it pass Third Reading
in the form attached hereto as H.B. No. 139, H.D. 1.

                                 STAND. COM. REP. NO. 754________
                                 Page 2

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair