STAND. COM. REP. NO.  170

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1120

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Veterans, Military, & International Affairs, & Culture and the Arts, to which was referred H.B. No. 1120 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

The purpose of this measure is to provide a preference for veterans within the small business set aside of the State's annual purchasing expenditure.

     Specifically, this measure requires that, of the twenty per cent goal to be awarded to small businesses:

(1)  At least twenty-five per cent shall be awarded to veteran-owned small businesses; and

(2)  At least a separate forty per cent shall be awarded to service-disabled veteran-owned small businesses.

     Accordingly, if enacted, this measure would require that of the State's annual purchasing expenditures:

(1)  At least five per cent shall be awarded to veteran-owned small businesses; and

(2)  At least a separate eight per cent shall be awarded to service-disabled veteran-owned small businesses.

Your Committee received testimony in support of this measure from the Department of Defense, the Office of Veterans Services, and two concerned citizens.  Testimony in opposition to this measure was received from the State Procurement Office.  Comments on this measure were received from the General Contractors Association of Hawaii.

     Your Committee finds that many Hawaii veterans return from their military service to start small businesses.  A set aside for qualified veterans would be of great assistance and encourage veterans to either establish or continue operating their small businesses.

Your Committee requests that the Committee on Economic Development and Business, should it decide to hear this measure, carefully review the phrase "a veteran discharged under honorable conditions" and, if necessary, clarify the language to ensure it does not include "a veteran who was dishonorably discharged."

     As affirmed by the record of votes of the members of your Committee on Veterans, Military, & International Affairs, & Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1120 and recommends that it pass Second Reading and be referred to the Committee on Economic Development & Business.

Respectfully submitted on behalf of the members of the Committee on Veterans, Military, & International Affairs, & Culture and the Arts,

____________________________

KEN ITO, Chair