[Congressional Record Volume 145, Number 37 (Tuesday, March 9, 1999)]
[Extensions of Remarks]
[Page E365]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               H.R. 474--FEDERAL CONSTRUCTION CONTRACTING

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                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                         Tuesday, March 9, 1999

  Mrs. MINK of Hawaii. Mr. Speaker, recently, I introduced legislation, 
H.R. 474, to help local contractors compete for military construction 
projects. The purpose of H.R. 474 is to address concerns raised by 
various unions, contractors, and the State of Hawaii, that local 
companies are not getting a fair shot at competing for military 
construction contracts. The ability of out-of-state contractors to 
ignore state tax and employment laws have allowed them to avoid costs 
that local companies have to meet and thereby outbid our local 
companies.
  The problem of out of state contractors dodging state tax and 
employment laws was documented at the Congressional hearing I held on 
August 5, 1995, in Hawaii. H.R. 474 incorporates many of the 
suggestions and proposals made at this hearing on ways to make the 
bidding process more equitable for local companies.
  H.R. 474 requires contractors to obtain a state tax clearance in 
order to be an eligible bidder on military construction projects; it 
requires them to obtain a state tax clearance and certify compliance 
with state employment laws in order to receive the final project 
payment; allows a military agency to withhold payment in order to meet 
state tax obligations; and it requires a contractor that has won a bid 
to obtain a state license in the state in which the work is to be 
performed, if that state requires such a license.
  Military construction work is an important part of Hawaii's economy. 
Not only will Hawaii's local companies benefit from this legislation, 
but all local companies across the nation will have a fair chance to 
compete for these projects that are worth millions of dollars.
  By joining me in supporting H.R. 474 we can provide the enforcement 
needed to make sure all bidders play by the same rules. I urge my 
colleagues to support this legislation.

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