Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Business and Economic Development, to which was referred H.B. No. 162, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to promote and develop the growth of small businesses.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; the Department of Accounting and General Services; the Chamber of Commerce of Hawaii; Environet, Inc.; and three individuals. Your Committee also received comments from the State Procurement Office.

Your Committee finds that this measure will support small business growth and development. This measure directs the Procurement Policy Board to establish administrative rules that help small businesses obtain state and county contracts. This measure allows for the creation of small business set-asides and encourages larger contractors to use small businesses as subcontractors by making it one of the factors considered in the bid evaluation process. Your Committee also notes that this measure is similar to S.B. No. 668, S.D. 1, which earlier was passed by the Senate.

As affirmed by the record of votes of the members of your Committee on Business and Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 162, H.D. 2, and recommends that it pass Second Reading and be referred to the Committees on Transportation and Government Operations and Ways and Means.