THE SENATE	S.B. NO.	2582
TWENTY-SIXTH LEGISLATURE, 2012		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE.

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

     SECTION 1.  Section 103D-901, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

     ""Service connected disability" means a disability incurred or aggravated in the line of duty by an individual in the active military, naval, or air service as described in title 38 United States Code section 101(16).

"Service disabled veteran" means a veteran who has a service connected disability as determined by the United States Department of Veterans Affairs or the United States Department of Defense.

"Service disabled veteran owned small business" means a small business:

(1) Of which at least fifty-one per cent of the small business is owned by one or more service disabled veterans residing in the State or, in the case of a corporation, at least fifty-one per cent of the stock of the corporation is owned by one or more service disabled veterans residing in the State;

(2) With a home office located in the State;

(3) That has fifty or fewer employees; and

(4) For which paragraphs (1) to (3) are factually verified annually by the chief procurement officer.

"Veteran" means a person who has:

(1) Been a member of the armed forces of the United States or, while a citizen of the United States, was a member of the armed forces of allies of the United States in time of hostilities with a foreign country; and

(2) Served under one or more of the following conditions:

(A) The veteran served a total of at least six months;

(B) The veteran was discharged on the basis of hardship; or

(C) The veteran was released from active duty because of a service connected disability and was discharged under honorable conditions.

"Veteran owned small business" means a small business:

(1) Of which at least fifty-one per cent of the small business is owned by one or more veterans residing in the State or, in the case of a corporation, at least fifty-one per cent of the stock of the corporation is owned by one or more veterans residing in the State;

(2) With a home office located in the State;

(3) That has fifty or fewer employees; and

(4) For which paragraphs (1) to (3) are factually verified annually by the chief procurement officer."

     SECTION 2.  Section 103D-903, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  In carrying out this part, the chief procurement officer may:

     (1)  Give special publicity to procurement procedures and issue special publications designed to assist small businesses in learning how to do business with the State;

     (2)  Compile, maintain, and make available source lists of small businesses for the purpose of encouraging procurement from small business;

     (3)  Include small businesses on solicitation mailing lists;

     (4)  Develop and conduct training programs to assist small businesses;

     (5)  Reduce the level or change the types of bonding normally required or accept alternative forms of security;

     (6)  Make special provisions for progress payments;

     (7)  Establish the goal that twenty per cent of the State's annual purchasing expenditure be awarded to small business; provided that, of the twenty per cent set aside for small businesses, a combined total of not less than three per cent shall be awarded to veteran owned small businesses and service disabled veteran owned small businesses; and

     (8)  Impose mandatory evaluation criteria designed to encourage the use of small business as subcontractors on large contracts not susceptible to performance by small business."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on January 1, 2020.

Report Title:

Hawaii Public Procurement Code; Veteran Owned and Service Disabled Veteran Owned Small Businesses; Set-Aside

Description:

Clarifies that, of the 20% of the State's annual purchasing expenditure set aside to be awarded to small businesses, at least 3% shall be awarded to veteran owned and service disabled veteran owned small businesses having 50 or fewer employees.  Effective 1/1/20.  (SD2)

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