STAND. COM. REP. NO. 1300

Honolulu, Hawaii

RE: H.B. No. 1188

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Government Operations, to which was referred H.B. No. 1188, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE PROCUREMENT OFFICE,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds for fiscal year 2019-2020 to the State Procurement Office to advance the small business assistance initiative.

Your Committee received testimony in support of this measure from the State Procurement Office, Association of Hawaiian Civic Clubs, and Prince Kūhiō Hawaiian Civic Club.

Your Committee finds that small businesses are the lifeblood of the State's economy. Act 42, Session Laws of Hawaii 2017, established within the State Procurement Office a three-year small business initiative to facilitate the collection and development of relevant data and convene stakeholders for purposes of developing an effective small business program. The State Procurement Office was appropriated $200,000 in 2018 for only the first year of the three-year program. Funding for year two of the program is critical to the success of the small business assistance program because the development of effective rules will set the groundwork for a small business set-aside program and basis for training, workshop campaigns, and an implementation program. This measure will appropriate funds for fiscal year 2019-2020, which will allow the State Procurement Office to continue working toward ensuring that small businesses are able to effectively participate in contracting opportunities, thereby promoting the growth and development of small businesses in the State.

Your Committee has amended this measure by changing the effective date to January 1, 2061, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1188, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1188, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

LAURA H. THIELEN, Chair