Bill Text: HI HB313 | 2014 | Regular Session | Introduced

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Bill Title: Procurement; Veterans

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [HB313 Detail]

Download: Hawaii-2014-HB313-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	313
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO VETERAN-OWNED BUSINESSES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that one in every seven small business owners nationwide are veterans.  This equates to over 2.4 million veteran-owned companies operating in the United States.  In Hawaii, 10,268 firms qualified as veteran-owned companies as of calendar year 2007, according to the United States Census.

     The legislature further finds that the attributes of former military personnel, so vital to defending our freedom, are the very same qualities essential for running a successful business.  The United States and the State of Hawaii need as many productive and successful small and medium sized businesses as possible.  Veteran-owned businesses are an integral part of the small business community and are vital to job creation and economic growth in our State.

     The legislature further finds that the Federal Government recognized the value of supporting veteran-owned businesses when it enacted the Veterans Entrepreneurship and Small Business Development Act of 1999, P.L. 106-50, that created a three per cent federal procurement goal for service-disabled veteran-owned businesses.  The Federal Government further strengthened its commitment by passing the Veterans Benefit Act of 2003, P.L. 108-183, to enable service-disabled veteran-owned businesses to receive sole source and restricted competition contracts for goods and services used by the United States government.

     The legislature further finds that state and county governments can benefit from using veteran-owned businesses, including companies owned and operated by service-disabled veterans, since many such business owners know and understand firsthand the needs of government and public organizations. In addition, many of these businesses have the capacity to meet the specifications and quality standards of state and county procurement regulations.

     The legislature further finds that the State of Hawaii enters into procurements for goods and services totaling an average of $1,100,000,000 per year.  The State of Hawaii has already acknowledged the advantages of procurement preferences by establishing such preferences for small businesses, Hawaii-made products, products with recycled content, Hawaii software developers, and qualified community rehabilitation agencies. 

     The purpose of this Act is to establish the goal that at least three per cent of the State's annual purchasing expenditures be awarded to veteran-owned businesses and create government contract preferences for veteran-owned businesses.

     SECTION 2.  Section 103D-903, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c) In carrying out this part, the chief procurement officer may:

     (1)  Give special publicity to procurement procedures and issue special publications designed to assist small businesses in learning how to do business with the State;

     (2)  Compile, maintain, and make available source lists of small businesses for the purpose of encouraging procurement from small business;

     (3)  Include small businesses on solicitation mailing lists;

     (4)  Develop and conduct training programs to assist small businesses;

     (5)  Reduce the level or change the types of bonding normally required or accept alternative forms of security;

     (6)  Make special provisions for progress payments;

     (7)  Establish the goal that twenty per cent of the State's annual purchasing expenditure be awarded to small business; [and]

     (8)  Impose mandatory evaluation criteria designed to encourage the use of small business as subcontractors on large contracts not susceptible to performance by small business[.]; and

     (9)  Establish the goal that at least three per cent of the State's annual purchasing expenditures be awarded to veteran-owned businesses."

     SECTION 3.  Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part IX to be appropriately designated and to read as follows:

     "§103D-     Veteran-owned businesses.  (a)  When a governmental body contracts for services, a four and one half per cent preference shall be given to goods or services procured from a veteran-owned business and a five per cent preference shall be given if the veteran is service disabled.

     (b)  Solicitations shall contain a provision notifying offerors that veteran-owned businesses shall apply to the solicitation.

     (c)  Nothing in this section shall limit, restrict, or preclude a veteran-owned business from qualifying for any other preferences, set-asides, or criteria that may apply under section 103D-906, Hawaii Revised Statutes, or other provisions of this chapter, and this section shall operate as a further preference when a business qualifies for more than one such preference."

     SECTION 4.  Section 103D-901, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

     ""Service disabled" means a veteran with a service-connected disability incurred or aggravated in the line of duty in the active duty military.

     "Veteran" means a person who has served in the active duty military including the army, navy, air force, marines, or Coast Guard and who was discharged or released from his or her service under conditions other than dishonorable.

     "Veteran-owned business" means a business entity that is fifty-one per cent or more owned by a veteran.""

     SECTION 5.  The department of accounting and general services shall prepare a report to the legislature that shall include, but not be limited to, information on the dollar value of procurement actions awarded to veteran-owned businesses, information on the value of procurements awarded to service-disabled veterans, the number of such businesses receiving preference awards under this Act, and the costs of administering the preference program.  This report shall also explain whether the three per cent set-aside requirement was met and if not, what steps the legislature should take to ensure the State's procurement officers comply with the three per cent set-aside requirement.  The department of accounting and general services shall submit the report to the legislature no later than twenty days prior to the convening of the regular session of 2017.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2013.

 

INTRODUCED BY:	_____________________________
	_____________________________

 

 

Report Title:

Procurement; Veterans

 

Description:

Establishes the goal that at least three per cent of the State's annual purchasing expenditures be awarded to veteran-owned businesses.  Creates government contract preferences for veteran-owned businesses. Requires the comptroller to prepare a report to the legislature concerning the progress of the Act.

 

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.