SB2075 • 2026

RELATING TO PUBLIC PROCUREMENT.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: WAKAI, CHANG, FEVELLA, HASHIMOTO, KANUHA, KIDANI, MCKELVEY, RICHARDS, San Buenaventura
Last action: 2026-05-08
Official status: Enrolled to Governor.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO PUBLIC PROCUREMENT.

What This Bill Does

RELATING TO PUBLIC PROCUREMENT.
Public Procurement; Local Preference; Hawaii Bidders; Hawaii Offerors; Competitive Sealed Bidding; Competitive Sealed Proposals; Debarment; Rules Requires purchasing agencies to apply a five per cent flat rate local preference in evaluating bids or proposals from qualified Hawaii bidders or offerors who submit a timely preference certification.
Establishes criteria for a bid or proposal to qualify for a local preference.
Establishes requirements for the qualification and certification of Hawaii bidders and offerors and consequences for failure to maintain qualification.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

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

CD1

Hawaii published version CD1

Plain English: SB2075 CD1 THE SENATE S.B.

SB2075 CD1 THE SENATE S.B.
NO.
2075 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII H.D.

HD1

Hawaii published version HD1

Plain English: SB2075 HD1 THE SENATE S.B.

SB2075 HD1 THE SENATE S.B.
NO.
2075 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII H.D.

HD2

Hawaii published version HD2

Plain English: SB2075 HD2 THE SENATE S.B.

SB2075 HD2 THE SENATE S.B.
NO.
2075 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII H.D.

SD1

Hawaii published version SD1

Plain English: SB2075 SD1 THE SENATE S.B.

SB2075 SD1 THE SENATE S.B.
NO.
2075 THIRTY-THIRD LEGISLATURE, 2026 S.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT .

Bill History

2026-05-08 S
Enrolled to Governor.
2026-05-08 S
Received notice of passage on Final Reading in House (Hse. Com. No. 888).
2026-05-06 H
Received notice of Final Reading (Sen. Com. No. 816).
2026-05-06 S
Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none. Noes, 0 (none). Excused, 0 (none).
2026-05-06 H
Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).
2026-05-01 H
Forty-eight (48) hours notice Wednesday, 05-06-26.
2026-05-01 H
Reported from Conference Committee (Conf Com. Rep. No. 229-26) as amended in (CD 1).
2026-05-01 S
48 Hrs. Notice (as amended CD 1) 05-06-26.
2026-05-01 S
Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 229-26).
2026-05-01 S
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 2 Aye(s): Senator(s) McKelvey, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
2026-05-01 H
The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Ilagan, Hussey, Gedeon; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2026-05-01 S
Conference committee meeting to reconvene on 05-01-26 5:36 PM; Conference Room 411.
2026-05-01 S
Conference committee meeting to reconvene on 05-01-26 4:30 PM; Conference Room 411.
2026-04-30 S
Conference committee meeting to reconvene on 05-01-26 10:40AM; CR 016.
2026-04-28 S
Conference committee meeting scheduled for 04-30-26 10:40AM; Conference Room 016.
2026-04-28 S
Received notice of appointment of House conferees (Hse. Com. No. 870).
2026-04-27 H
House Conferees Appointed: Ilagan, Hussey Co-Chairs; Gedeon.
2026-04-21 H
Received notice of Senate conferees (Sen. Com. No. 718).
2026-04-21 S
Senate Conferees Appointed: McKelvey Chair; Wakai Co-Chair; Fevella.
2026-04-16 H
Received notice of disagreement (Sen. Com. No. 710).
2026-04-16 S
Senate disagrees with House amendments.
2026-04-16 S
Received from House (Hse. Com. No. 619).
2026-04-14 H
Passed Third Reading as amended in HD 2 with none voting aye with reservations; none voting no (0) and none excused (0). Transmitted to Senate.
2026-04-10 H
Forty-eight (48) hours notice Tuesday, 04-14-26.
2026-04-10 H
Reported from FIN (Stand. Com. Rep. No. 2139-26) as amended in HD 2, recommending passage on Third Reading.
2026-04-08 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: Representative(s) Templo; Noes: none; and Excused: none.
2026-04-06 H
Bill scheduled to be heard by FIN on Wednesday, 04-08-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2026-03-25 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Matsumoto, Perruso excused (2).
2026-03-25 H
Reported from ECD (Stand. Com. Rep. No. 1424-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-03-20 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Ilagan, Hussey, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.
2026-03-16 H
Bill scheduled to be heard by ECD on Friday, 03-20-26 9:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-03-12 H
This measure has been deleted from the meeting scheduled on Friday 03-13-26 10:00AM in conference room 423 VIA VIDEOCONFERENCE.
2026-03-10 H
Bill scheduled to be heard by ECD on Friday, 03-13-26 10:00AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-03-10 H
Referred to ECD, FIN, referral sheet 16
2026-03-10 H
Pass First Reading
2026-03-06 H
Received from Senate (Sen. Com. No. 38) in amended form (SD 1).
2026-03-06 S
Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.
2026-03-05 S
One Day Notice 03-06-26.
2026-03-05 S
Reported from WAM (Stand. Com. Rep. No. 2758) with recommendation of passage on Third Reading.
2026-03-03 S
The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
2026-02-25 S
The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference.
2026-02-23 S
The committee(s) on WAM will hold a public decision making on 02-25-26 10:56AM; Conference Room 211 & Videoconference.
2026-02-19 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2026-02-19 S
Reported from GVO (Stand. Com. Rep. No. 2470) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2026-02-12 S
The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in GVO were as follows: 5 Aye(s): Senator(s) McKelvey, Gabbard, Hashimoto, Moriwaki, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2026-02-05 S
The committee(s) on GVO deferred the measure until 02-12-26 3:00PM; Conference Room 225 & Videoconference.
2026-02-03 S
The committee(s) on GVO deferred the measure until 02-05-26 3:00PM; Conference Room 225 & Videoconference.
2026-01-30 S
The committee(s) on GVO has scheduled a public hearing on 02-03-26 3:00PM; Conference Room 225 & Videoconference.
2026-01-22 S
Referred to GVO, WAM.
2026-01-21 S
Introduced and passed First Reading.
2026-01-14 S
Pending Introduction.

Official Summary Text

RELATING TO PUBLIC PROCUREMENT.
Public Procurement; Local Preference; Hawaii Bidders; Hawaii Offerors; Competitive Sealed Bidding; Competitive Sealed Proposals; Debarment; Rules
Requires purchasing agencies to apply a five per cent flat rate local preference in evaluating bids or proposals from qualified Hawaii bidders or offerors who submit a timely preference certification. Establishes criteria for a bid or proposal to qualify for a local preference. Establishes requirements for the qualification and certification of Hawaii bidders and offerors and consequences for failure to maintain qualification. Requires the Procurement Policy Board to adopt rules. (CD1)

Current Bill Text

Read the full stored bill text

SB2075

THE SENATE

S.B. NO.

2075

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to public procurement
.

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

����
SECTION 1.
�
The
legislature finds that supporting local businesses strengthens the State's
economy by creating more local jobs, increasing local workforce and business
capacity, and enhancing economic and environmental sustainability.
�
The legislature further finds that allocation
of State funds to non‑local or out‑of‑state contractors or
entities do not foster the same benefits and may impede upon the success of
local businesses and the State's economy.
�

Local businesses often face barriers when competing for State contracts
due to the higher costs associated with doing business in an island state,
limited physical workforce capacity, and limited price competitiveness to
produce goods and services.

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The legislature believes that a preference
for local businesses in bidding for contracts from purchasing agencies of the
State and counties will help level the business playing field for local
contractors.
�
The legislature recognizes
that while a local preference may slightly raise the average cost for bid
contracts, this cost will be offset by the increases in State and county
revenues from additional local business activity, increased local employment,
and the long-term effects of keeping money within local businesses and the
local workforce.

����
Accordingly, the purpose of this Act is to require
purchasing agencies to apply a local preference to Hawaii businesses in
evaluating bids or proposals.

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SECTION 2.
�

Section 103D-1001, Hawaii Revised Statutes, is amended by adding a new
definition to be appropriately inserted and to read as follows:

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"
"Hawaii business" means
any person, agency, corporation, or other business entity with its principal
place of business located in the State.
"

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SECTION
3.
�
Chapter 103D, Hawaii Revised
Statutes, is amended by adding a new section to part X to be appropriately
designated and to read as follows:

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"
�103D-
�
Hawaii businesses.
�
(a)
�
Notwithstanding any law to the
contrary, a purchasing agency shall apply a local preference to a Hawaii
business in evaluating bids or proposals under this part.

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(b)
�
To qualify for a local
preference, a Hawaii business shall self-certify that:

����
(1)
�
It will maintain its principal place
of business in the State throughout the performance of the contract; and

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(2)
�
Not less than eighty per cent of the
labor in the performance of the contract, with respect to time and expenses, will
be incurred from persons domiciled in the State.

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(c)
�
Where
a bid or proposal contains both Hawaii and non‑Hawaii businesses, for the
sole purpose of selecting the lowest bid or purchase price, the price or bid
offered by the Hawaii business shall be decreased by subtracting the applicable
local preference percentage pursuant to subsection (d); provided that the
contract amount of any contract awarded shall be the amount of the bid or price
offered, exclusive of the preferences.

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(d)
�
The local preference percentage shall be
applied as follows:

����
(1)
�
For contracts with a bid price of less
than $250,000, the preference shall be ten per cent;

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(2)
�
For contracts with a bid price of
$250,000 to $1,999,999.99, the preference shall be eight per cent;

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(3)
�
For contracts with a bid price of $2,000,000
to 4,999,999.99, the preference shall be six per cent;

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(4)
�
For contracts with a bid price of $5,000,000
to 7,999,999.99 the preference shall be four per cent;

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(5)
�
For contracts with a bid price of $8,000,000
to 9,999,999.99, the preference shall be two per cent; and

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(6)
�
For contracts with a bid price of
$10,000,000 or greater, there shall be no preference pursuant to this section.

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(e)
�
If a Hawaii business is awarded a contract
with the application of a local preference and is subsequently found to have
failed to meet or maintain the requirements of subsection (b), the Hawaii business
shall:

����
(1)
�
Perform the contract at the contract
price reduced by the amount of the local preference applied during bid or
proposal evaluation; and

����
(2)
�
Refund any overpayment to the
purchasing agency that awarded the contract.

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(f)

�
The policy board or any county may adopt
rules pursuant to chapter 91 or ordinances, respectively, necessary or
appropriate to implement this section.
"

����
SECTION
4.
�
New statutory material is
underscored.

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SECTION
5.
�
This Act shall take effect on July 1,
2026.

INTRODUCED BY:

_____________________________

Report Title:

Public
Procurement; Local Preference; Hawaii Businesses

Description:

Requires purchasing
agencies to apply a local preference to Hawaii businesses in evaluating bids or
proposals.
�
Establishes criteria for a
Hawaii business to qualify for a local preference.
�
Establishes tiered local preference
percentages to be applied based on bid price.
�

Establishes procedures for contract awardees who fail to meet or
maintain the preference criteria.

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