HB1414 • 2026

RELATING TO PROCUREMENT.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: REYES ODA
Last action: 2026-03-24
Official status: The committee on GVO deferred the measure.
Effective date: Not listed

Plain English Breakdown

The bill's effective date is not specified in the official source material and appears to be a placeholder (July 1, 3000).

Rules for Awarding Contracts

This bill allows procurement agencies to choose a bidder other than the lowest responsible and responsive one if it's better for taxpayers or the state.

What This Bill Does

Changes rules on how contracts are awarded in competitive bidding processes.
Gives agency heads permission to pick bidders who aren't the cheapest but might be best for taxpayers or the state.
Requires that decisions must benefit taxpayers and serve the state's interests.

Who It Names or Affects

Procurement agencies in Hawaii
Bidders competing for contracts

Terms To Know

procurement agency: An organization responsible for buying goods or services for the government.
competitive sealed bidding: A process where companies submit bids in a sealed envelope, and the lowest bid is usually chosen.

Limits and Unknowns

The bill does not specify how to decide if a bidder other than the cheapest one is best for taxpayers or the state.
It's unclear what happens if all bidders exceed available funds but no adjustments can be made.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment allows the head of a procurement agency to award contracts to bidders who are not the lowest responsible and responsive bidder if it benefits taxpayers or serves the state's best interests.

The amendment permits the head of a purchasing agency, with approval from the chief procurement officer, to choose a bidder other than the one with the lowest bid if it is more beneficial for taxpayers or better for the state.

The amendment specifies an effective date of July 1, 3000, which seems unusual and may be a placeholder or error.
It's unclear how this change will be implemented in practice without further details on criteria or procedures.

Bill History

2026-03-24 S
The committee on GVO deferred the measure.
2026-03-19 S
The committee(s) on GVO deferred the measure until 03-24-26 3:00PM; CR 225 & Videoconference.
2026-03-17 S
The committee(s) on GVO deferred the measure until 03-19-26 3:00PM; Conference Room 225 & Videoconference.
2026-03-12 S
The committee(s) on GVO has scheduled a public hearing on 03-17-26 3:05PM; Conference Room 225 & Videoconference.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-03-06 S
Referred to GVO, WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 370).
2025-03-04 H
Passed Third Reading with Representative(s) Belatti, Cochran, Iwamoto, Perruso voting aye with reservations; Representative(s) Amato, Kong, Lamosao, Souza voting no (4) and Representative(s) Kapela, Pierick, Ward excused (3). Transmitted to Senate.
2025-02-28 H
Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4).
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 995) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading.
2025-02-26 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward.
2025-02-24 H
Bill scheduled to be heard by FIN on Wednesday, 02-26-25 10:50AM in House conference room 308 VIA VIDEOCONFERENCE.
2025-01-27 H
Referred to FIN, referral sheet 4
2025-01-23 H
Introduced and Pass First Reading.

Official Summary Text

RELATING TO PROCUREMENT.
Procurement; Competitive Sealed Bidding; Contract Award; Best Interests of the State
Authorizes the head of a procurement agency to award a contract to a bidder who is not the lowest responsible and responsive bidder, for procurements conducted by competitive sealed bidding, if the head of the procuring agency determines that the award is most beneficial to taxpayers or otherwise in the best interests of the State. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1414

HOUSE OF REPRESENTATIVES

H.B. NO.

1414

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to procurement
.

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

����
SECTION 1.
�
Section 103D-302, Hawaii Revised Statutes, is
amended by amending subsection (h) to read as follows:

����
"(h)
�
The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and responsive bidder
whose bid meets the requirements and criteria set forth in the invitation for
bids[
.
]
; provided that, if the purchasing agency determines that an
award made to the lowest responsible and responsive bidder is not in the best
interests of the State, the head of the purchasing agency, with the approval of
the chief procurement officer, may award the contract to the responsible and
responsive bidder whose bid is most beneficial to taxpayers or otherwise in the
best interests of the State.
�
In the
event all bids exceed available funds as certified by the appropriate fiscal
officer, the head of the purchasing agency responsible for the procurement in
question is authorized in situations where time or economic considerations
preclude resolicitation of work of a reduced scope to negotiate an adjustment
of the bid price, including changes in the bid requirements, with the low
responsible and responsive bidder, in order to bring the bid within the amount
of available funds."

����
SECTION
2.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

����
SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Procurement;
Competitive Sealed Bidding; Contract Award; Best Interests of the State

Description:

For procurements
conducted by competitive sealed bidding, authorizes the head of a procurement
agency to award a contract to a bidder who is not the lowest responsible and
responsive bidder if the head of the procuring agency determines that the award
is most beneficial to taxpayers or otherwise in the best interests of the
State.

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