Bill > HB723

This bill aims to strengthen Hawaii's local business economy by modifying state procurement regulations to prioritize and support local vendors. The legislation mandates that state agencies give preference to local vendors when purchasing goods, services, or construction, provided these meet required specifications and are available at a reasonable cost. Specifically, agencies will apply a 15% preference to bids from local vendors and can split contracts into smaller parcels to allow multiple local vendors to participate, as long as doing so doesn't compromise project efficiency or significantly increase costs. A "local vendor" is defined as a business headquartered in Hawaii that primarily employs Hawaii residents. The bill requires state agencies to submit annual reports detailing their local procurement percentages, challenges encountered, and recommendations for improvement. Additionally, the legislation changes existing procurement rules to make multiple vendor awards more flexible, with the goal of promoting efficiency, expanding opportunities for local businesses, and ensuring the best value for public funds. The procurement policy board will be responsible for adopting detailed rules to implement these changes, and the bill is set to take effect on July 1, 2025.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=723&year=2026