Honolulu, Hawaii
                                                     , 1999

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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 675, S.D. 1, entitled: 


begs leave to report as follows:
     The purpose of this measure is to require a state
contracting license for federal construction projects in Hawaii,
to the extent allowed under federal law.

     The Department of Commerce and Consumer Affairs (DCCA), the
State Contractors License Board, and the Iron Workers
Stabilization Fund presented testimony in support of this
measure.  The Building Industry Association of Hawaii, the
Construction Industry Legislative Organization, the Hawaii
Electricians Market Enhancement Program Fund, the Pacific
Resource Partnership, the General Contractors Association of
Hawaii, and the Subcontractors Association of Hawaii, while not
present, submitted testimony in support of this measure.

     Your Committee finds that the Regulated Industries
Complaints Office of DCCA has received a number of requests to
enforce state contractors licensing laws on federal projects, but
was hampered in its response by the supremacy clause of the
United States Constitution and case law that held in favor of the
federal government.  This measure, however, will allow the State
to require licensure on federal projects should federal laws,
case law, or particular circumstances change.

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                                   STAND. COM. REP. NO. 566
                                   Page 2

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 675, S.D. 1, and recommends that it pass
Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,

                                   BRIAN KANNO, Co-Chair

                                   BRIAN T. TANIGUCHI, Co-Chair

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