THE SENATE                           S.C.R. NO.            21
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION
  URGING HAWAII'S CONGRESSIONAL DELEGATION TO ENSURE EQUITY IN
   THE GRANTING OF FEDERAL CONSTRUCTION CONTRACTS TO LOCAL
   COMPANIES.



 1        WHEREAS, Hawaii is in a severe economic downturn that has
 2   lasted for several years; and
 3   
 4        WHEREAS, developing employment opportunities is critical
 5   to Hawaii's economic recovery which is made more difficult by
 6   Hawaii's isolation and unique economy; and
 7   
 8        WHEREAS, Public Law 99-190, the Department of Defense
 9   Appropriations Act of 1986, Section 8078, as amended, provide
10   that contracts awarded by the Department of Defense that are
11   performed in whole or in part in a noncontiguous state (Hawaii
12   or Alaska) that has an unemployment rate in excess of the
13   national average as determined by the Secretary of Labor, shall
14   include a provision requiring the contractor to employ
15   residents of the state in which the contract or part of it is
16   to be performed; and
17   
18        WHEREAS, the United States Department of Defense has by
19   practice and policy abdicated its administrative authority and
20   duty to contractors to determine whether there are qualified
21   residents or whether it is possible for a resident to acquire
22   the necessary skills "promptly", thus effectively subverting
23   the intent of Congress by allowing a contractor to effectively
24   enforce the law without administrative oversight; and
25   
26        WHEREAS, anecdotal evidence suggests that these federal
27   construction contracts are combined, or bundled together, by
28   federal agencies, making it difficult for the smaller, Hawaii-
29   based contractors to bid on such projects; and
30   
31        WHEREAS, large mainland general contractors can often
32   underbid their local counterparts by avoiding Hawaii State tax
33   liabilities; and
34   
35        WHEREAS, this unfair and unhealthy business climate has
36   had a high price tag so far and continues to spiral; now,
37   therefore,
38   

 
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                                  S.C.R. NO.            21
                                                        
                                                        

 
 1        BE IT RESOLVED by the Senate of the Twentieth Legislature
 2   of the State of Hawaii, Regular Session of 1999, the House of
 3   Representatives concurring, that Hawaii's congressional
 4   delegation support efforts to enforce the spirit and intent of
 5   Public Law 99-190; and
 6   
 7        BE IT FURTHER RESOLVED that a certified copy of this
 8   Concurrent Resolution be transmitted to the Majority Leader of
 9   the United States Senate; the Speaker of the United States
10   House of Representatives; Hawaii's Congressional Delegation;
11   the Secretary of Defense; and the Secretary of Labor.
12 
13 
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15                         OFFERED BY:  ____________________________