STAND. COM. REP. NO. 1221

Honolulu, Hawaii

RE:    S.C.R. No. 59

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred S.C.R. No. 59 entitled:

"SENATE CONCURRENT RESOLUTION URGING ALL STATE DEPARTMENTS AND AGENCIES TO DULY CONSIDER WOMEN-OWNED BUSINESSES WHEN AWARDING STATE CONTRACTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to urge all state departments and agencies to properly consider women-owned businesses when awarding state procurement contracts.

     Your Committee received testimony in support of this measure from the State Procurement Office; Department of Transportation; IMUAlliance; AMEL Technologies, Inc.; and one individual.

     Your Committee finds that according to data mined from the State Procurement Office website, it appears that women-owned architectural and engineering firms located in Hawaii are severely underrepresented in the awarding of state procurement contracts.  Your Committee notes that it can be challenging to navigate and successfully enter the state contracting process when tendencies exist to award contracts to the same businesses time and again.  Your Committee finds that a lack of metrics exists regarding the representation of veteran- and Native Hawaiian-owned businesses in the awarding of state contracts, but notes that in all likelihood they face similar challenges and are likewise underrepresented.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting a paragraph noting that data is currently unavailable regarding the overall percent of state contracts awarded to women-, veteran-, or Native Hawaiian-owned businesses in Hawaii, but in all likelihood these businesses face challenges in procuring state contracts and are underrepresented in the state procurement process;

     (2)  Inserting that veteran- and Native Hawaiian-owned business must be given proper consideration and equal opportunity for procuring state contracts if veteran- and Native Hawaiian-owned business are to succeed and achieve fair representation in the workforce;

     (3)  Urging Hawaii's state departments and agencies to duly consider, in addition to women-owned businesses, veteran- and Native Hawaiian-owned business when awarding state contracts;

     (4)  Urging Hawaii's state departments and agencies, including the Department of Transportation, Department of Accounting and General Services, Department of Education, and University of Hawaii System, to duly consider women-, veteran-, and Native Hawaiian-owned businesses when awarding state contracts;

     (5)  Requesting the Department of Transportation, Department of Accounting and General Services, Department of Education, and University of Hawaii System to submit to the Legislature no later than October 1, 2017, a list of state contracts under their department or agency awarded to women-, veteran-, and Native Hawaiian-owned businesses in the last two years;

     (6)  Amending its title to reflect its amended purpose; and

     (7)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 59, as amended herein, and recommends that it be referred to your Committee on Ways and Means, in the form attached hereto as S.C.R. No. 59, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

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DONNA MERCADO KIM, Chair