SECTION 1. Section 103D-901, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

""Service-connected disability" means a disability incurred in the line of duty during active military, naval, or air service as described in title 38 United States Code section 101(16).

"Service-disabled veteran" means a veteran who has been found to have a service-connected disability determined by the United States Department of Veterans Affairs or the United States Department of Defense.

"Service-disabled veteran-owned small business" means a small business:

(1) Where at least fifty-one per cent of the small business is owned by one or more service-disabled veterans living in the State, or in the case of a corporation, at least fifty-one per cent of the stock of the corporation is owned by one or more service-disabled veterans living in the State;

(2) Whose home office is located in the State; and

(3) For which paragraphs (1) and (2) are factually verified annually by the chief procurement officer.

"Veteran" means a person who has:

(1) Been a member of the armed forces of the United States or, while a citizen of the United States, was a member of the armed forces of allies of the United States in time of hostilities with a foreign country; and

(2) Served under one or more of the following conditions:

(A) Served a total of at least six months;

(B) Served for the duration of hostilities regardless of the length of the engagement;

(D) Was released from active duty because of a service connected disability and was discharged under honorable conditions.

"Veteran-owned small business" means a small business:

(1) Where at least fifty-one per cent of the small business is owned by one or more veterans living in the State or, in the case of a corporation, at least fifty-one per cent of the stock of the corporation is owned by one or more veterans living in the State;

(2) Whose home office is located in the State; and

(3) For which paragraphs (1) and (2) are factually verified annually by the chief procurement officer."

SECTION 2. Section 103D-903, Hawaii Revised Statutes, is amended to read as follows:

"§103D-903 Duties of the chief procurement officer. (a) The chief procurement officer may coordinate the implementation of this part with any similar programs offered by the department of business, economic development, and tourism or any other governmental body.

(b) The chief procurement officer may provide staff to provide service to designated state agencies to assist small businesses in learning how to do business with the State.

(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; provided that a combined total of not less than twenty-five per cent of the twenty per cent set aside by this paragraph shall be awarded to veteran-owned small businesses and not less than forty per cent of the twenty per cent set aside by this paragraph shall be awarded to service-disabled veteran-owned small businesses; 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.

Nothing in this section shall limit, restrict, or preclude a veteran�owned small business or service-disabled veteran-owned small business from qualifying for any other preferences, set�asides, or criteria that may apply under section lO3D�906, or any other provision of this chapter, and this section shall operate as a further preference when a veteran�owned small business or service-disabled veteran-owned small business qualifies for more than one such preference."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1120
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII