STAND. COM. REP. NO. 2654

Honolulu, Hawaii

RE:    S.B. No. 2582

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2582, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to require that of the twenty per cent of the State's annual purchasing expenditure that is required to be set aside for small business, 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.

     Written comments were submitted in opposition of this measure by the Department of Accounting and General Services.

     Your Committee finds that this measure encourages the development of veteran owned and service disabled veteran owned small businesses and helps to acknowledge the sacrifices made by veterans in the service of our country.

     Your Committee has amended this measure by:

     (1)  Clarifying the definitions of "service disabled veteran owned small business" and "veteran owned small business" with respect to veterans "residing" in the State;

     (2)  Deleting the requirement that the veteran "served for the duration of hostilities regardless of the length of the engagement" in the definition of "veteran" as unnecessary, based upon the remaining conditions under which an individual would qualify as a veteran;

     (3)  Including the phrase "or aggravated" in the definition of "service connected disability" for consistency with the definition in 38 U.S.C. section 101(16); and

     (4)  Making technical nonsubstantive corrections for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2582, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2582, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair