STAND. COM. REP. NO.  1148-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2582

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred S.B. No. 2582, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC PROCUREMENT CODE,"

begs leave to report as follows:

The purpose of this measure is to help stimulate economic growth in the State by:

     (1)  Authorizing the chief procurement officer to establish the goal of awarding at least three percent of the State's annual purchasing expenditures to veteran-owned businesses;

     (2)  Establishing graduated price preferences for bids and proposals submitted to procuring agencies by Hawaii small businesses, veteran-owned businesses, and service-disabled veteran-owned businesses; and

     (3)  Adding three new definitions to the Hawaii Public Procurement Code relating to assistance for small businesses regarding veterans, service-disabled veterans, and small businesses.

The National Association of Veteran-Owned Business Association testified in support of this measure.  The Hawaii Procurement Institute testified in support of the intent of this measure.  The State Procurement Office and Department of Accounting and General Services testified in opposition to this measure.  The General Contractors Association provided comments.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2582, S.D. 2, H.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. McKELVEY, Chair