STAND. COM. REP. NO. 907

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 21
                                        S.D. 1
                                        




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

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.C.R. No. 21 entitled:

     "SENATE CONCURRENT RESOLUTION URGING HAWAII'S CONGRESSIONAL
     DELEGATION TO ENSURE EQUITY IN THE GRANTING OF FEDERAL
     CONSTRUCTION CONTRACTS TO LOCAL COMPANIES,"

begs leave to report as follows:

     The purpose of this measure is to urge Hawaii's
congressional delegation to ensure equity in the granting of
federal construction contracts to local companies.

     No testimony on this measure was received.

     Your Committee finds that Hawaii's industries, especially
the construction industry, are experiencing serious economic
downturns.  Pursuant to federal law, when Hawaii's unemployment
rate exceeds that of the national average, U.S. Department of
Defense construction contracts for projects in Hawaii must
include a provision requiring the contractor to employ Hawaii
residents.  This provision creates economic opportunities for
Hawaii's construction industry and Hawaii's congressional
delegation should do all that is possible to ensure its equitable
enforcement.

     Your Committee has amended this measure by replacing
nonsubstantive language with language that:


 
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                                   STAND. COM. REP. NO. 907
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     (1)  Describes the progress the Department of Defense has
          made in complying with federal law and awarding an
          increasing number of contracts to Hawaii contractors
          over the past three fiscal years; and

     (2)  Expresses that more needs to be done to support
          Hawaii's contractors.

     Your Committee also amended the title to more accurately
reflect the intent of the measure.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee concurs with the intent
and purpose of S.C.R. No. 21, as amended herein, and recommends
its adoption in the form attached hereto as S.C.R. No. 21,
S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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