Honolulu, Hawaii



RE:    S.B. No. 1059




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committees on Government Operations and Economic Development, Tourism, and Technology, to which was referred S.B. No. 1059 entitled:




beg leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Establish a three-year small business assistance initiative within the State Procurement Office to collect and develop small businesses data and information, and convene stakeholders to develop an effective small business program with actionable results;


     (2)  Establish a small business assistance coordinator position, small business office, and small business advisory group as part of the small business initiative; and


     (3)  Appropriate funds for the administration and operation of the small business initiative.


     Your Committees received testimony in support of this measure from the State Procurement Office; Department of Defense; Chamber of Commerce Hawaii; Native Hawaiian Chamber of Commerce; Oahu Economic Development Board; Building Industry Association of Hawaii; Holomua Consulting Group, LLC; AMEL Technologies, Inc.; Native Hawaiian Veterans, LLC; RMA Sales; and Minatoishi Architects.


     Your Committees find that establishing a small business initiative with adequate staff and funding is a necessary first step in improving the climate and outlook for small businesses in Hawaii.  Your Committees find that small businesses are essential to the State's economy, create invaluable employment opportunities, and spur innovation and creativity.  Additionally, small businesses owned by veterans, Native Hawaiians, and women are among the most vulnerable and disadvantaged in the State. 


The three-year initiative proposed in this measure will for the first time produce relevant data and information on the small business community in Hawaii, including tracking small business participation in state contracts.  Your Committees note that according to data mined from the State Procurement Office website, it appears that only three percent of state contracts are awarded to women-owned architectural and engineering firms located in Hawaii, a figure that is inexcusably low considering the growing numbers of women graduating from engineering and architecture schools today.  Only through the collection of the data and metrics specified in this measure can a small business program that will ensure the long-term success of small businesses, including veteran-, Native Hawaiian-, and women-owned small businesses, in Hawaii be created going forward.


     As affirmed by the records of votes of the members of your Committees on Government Operations and Economic Development, Tourism, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1059 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committees on Government Operations and Economic Development, Tourism, and Technology,