HOUSE OF REPRESENTATIVES	H.B. NO.	2318
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to procurement.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that current difficult economic conditions warrant the use of incentives to help create job growth and stimulate the State's economy.  The legislature also finds that the process for procuring state contracts is often cumbersome.  The legislature further finds that incentives in the procurement process would lead to more companies bidding for state contracts.  This would give the State a broader network of contractors to choose from and would possibly expedite the progress of rebuilding Hawaii's economy and workforce by having a number of companies working on various state projects.

     The purpose of this Act is to create price preferences for bids and proposals submitted to procuring agencies by Hawaii small businesses, veterans, and disabled veterans.

     SECTION 2.  Section 103D-906, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§103D-906[]]  Preference for Hawaii small businesses[; set-asides; use as subcontractors.] (a)  The policy board shall adopt rules to promote the growth and development of Hawaii small businesses that shall include:

    [(1) Set-asides for small businesses in appropriate classifications of requirements suitable to performance by small businesses; and

(2) Criteria designed to encourage the use of small businesses as subcontractors on large contracts.]

(1) A five per cent price preference for small businesses other than those described in paragraphs (2) and (3);

(2) A seven per cent price preference for veterans; and

(3) A nine per cent price preference for disabled veterans.

The rules adopted pursuant to this section shall include rules for verifying the status and eligibility of veterans and disabled veterans.

(b)  As used in this section:

"Hawaii small business" means a small business as defined in section 103D-901, having:

(1) Its principal place of business or ancillary headquarters located within the State; and

(2) Not less than thirty-five per cent of its employees residing within the State.

"Disabled veteran" means a veteran who has a service-related disability that has been verified by the United States Department of Veterans Affairs and who meets any other applicable qualifications established by rule.

"Veteran" means any person who has served in any of the armed services of the United States in any war or campaign in which the United States was engaged, whose service has been verified by the United States Department of Veterans Affairs, and who meets any other applicable qualifications established by rule."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Procurement; Small Businesses; Veterans; Disabled Veterans; Preferences

Description:

Requires the procurement policy board to adopt rules to promote Hawaii small businesses that include a 5% preference for small businesses, a 7% preference for veterans, and a 9% preference for disabled veterans.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.