Bill > HB1607

This bill permanently establishes the Small Business Procurement Program and a Small Business Procurement Coordinator position within the State Procurement Office to support local businesses in obtaining state contracts. It mandates that state purchasing agencies apply a "local preference" to Hawaii businesses when awarding contracts through competitive bidding or proposals, meaning a 5% reduction is applied to a Hawaii business's bid for evaluation purposes, with specific criteria for a business to qualify as a Hawaii business, including maintaining its headquarters in the state and ensuring at least 51% of labor is performed by Hawaii residents. The bill also creates a special fund, effective January 1, 2029, requiring small businesses to contribute 0.2% of their state contract awards to this fund, which will then support tax-deductible nonprofit organizations and programs. Additionally, it repeals the previous Small Business Assistance Initiative from Act 168, SLH 2022, and appropriates funds to establish the Small Business Procurement Coordinator position.