[Congressional Record Volume 147, Number 20 (Tuesday, February 13, 2001)]
[Extensions of Remarks]
[Page E159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   FAIRNESS TO LOCAL CONTRACTORS ACT

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                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                       Tuesday, February 13, 2001

  Mrs. MINK of Hawaii. Mr. Speaker, today I am introducing the Fairness 
to Local Contractors Act to help local contractors compete for military 
construction projects. The purpose of the bill 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. The bill incorporates many of the 
suggestions and proposals made at this hearing on ways to make the 
bidding process more equitable for local companies.
  The bill 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 the Fairness to Local Contractors Act we 
can provide the enforcement needed to make sure all bidders play by the 
same rules. I urge my colleagues to cosponsor and support this 
legislation.

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