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 S.B. No. 668 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Procurement Policy Board to adopt rules effectuating set-asides to small businesses and imposing mandatory evaluation criteria designed to encourage the use of small businesses as subcontractors on large contracts.

Testimony in support of this measure was submitted by the Department of Business, Economic Development, and Tourism; the Department of Accounting and General Services; Chamber of Commerce Hawaii; Hawaii Technology Trade Association; and National Federation of Independent Business – Hawaii. Comments were also submitted by the State Procurement Office.

Your Committee acknowledges the importance of small businesses to the state economy. Encouraging the use of small businesses as subcontractors for large contracts and establishing set-asides for small business support the continued growth of Hawaii's small business community. Your Committee believes that this measure will sustain the development and growth of small businesses in the State.

Technical, non-substantive amendments were made for the purposes of style and clarity.

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 S.B. No. 668, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 668, S.D. 1, and be referred to the Committees on Transportation and Government Operations and Ways and Means.