Feds order state to stop enforcing ‘local jobs' laws

HONOLULU (HawaiiNewsNow) – The federal Department of Housing and Urban Development (HUD) has notified Governor Lingle that Act 68, the "local jobs" law, enacted in April violates federal procurement rules. The law, which was vetoed by Lingle and then passed by the Hawaii Senate in an override, mandates that 80% of workers hired for state construction projects be local residents.

Another law passed in 2009, Act 17, came under fire from HUD, that legislation gives companies that have apprenticeship programs preference in the bidding process for state contracts. HUD says that both laws cannot be applied to projects that involve federal funds.

Governor Lingle says that the state will ask for a federal ruling whether two laws violate other federal regulations and called for the state legislature to repeal them.

"I encourage the Legislature to take immediate steps to repeal these two laws since they place federally funded public construction projects in Hawaii in jeopardy and could even subject the State to fines and penalties for violating federal procurement rules" said Lingle.

More about this story on HawaiiNewsNow.com:

Lingle vetoes 'local jobs' bill

Proposed Hawaii 'local jobs' law would limit out-of-state workforce on government projects

Copyright 2010 Hawaii News Now. All rights reserved.