STAND. COM. REP. NO. 1496

Honolulu, Hawaii

, 2005

RE: H.B. No. 162

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Ways and Means, to which was referred H.B. No. 162, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

beg leave to report as follows:

The purpose of this measure is to require the state procurement policy board to adopt rules to promote the growth and development of small businesses.

Your Committees received testimony in support of this measure from the Department of Accounting and General Services, Department of Business, Economic Development, and Tourism, State Procurement Office, The Chamber of Commerce of Hawaii, Benefit Capital Financial Services, Inc., Principle-Centered Solutions, Hawaii Engineering Group, Inc., and Boss Communication Technologies.

Your Committees find that this measure will support small business growth and development. This measure directs the Procurement Policy Board to establish administrative rules that help small businesses obtain state and county contracts. This measure allows for the creation of small business set-asides and encourages larger contractors to use small businesses as subcontractors by making it one of the factors considered in the bid evaluation process.

Small businesses are the lifeblood of the State's economy. This measure has the effect of encouraging entrepreneurship, which in turn strengthens the economy. Government contracts are very important to small businesses in Hawaii.

Your Committees have amended this measure by:

(1) Making a conforming statutory amendment by amending the definition of "small business";

(2) Clarifying the duties of the chief procurement officer in relation to small business; and

(3) Making technical, nonsubstantive amendments.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 162, H.D. 2, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 162, H.D. 2, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Transportation and Government Operations and Ways and Means,

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BRIAN T. TANIGUCHI, Chair

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LORRAINE R. INOUYE, Chair