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SB2308
THE SENATE
S.B. NO.
2308
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to procurement
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that under
existing procurement law, any offeror awarded a state contract of $2,500 or
more must demonstrate compliance with various state laws governing businesses,
including tax and employment laws.
�
While
ensuring legal compliance is important to uphold fairness and accountability in
public contracting, the existing $2,500 threshold triggering this requirement
is outdated and unduly low.
�
This
threshold, which has remained unchanged for many years, forces even very small
procurement awards to undergo the same compliance certification process as much
larger contracts.
�
The additional
paperwork and procedural hurdles for these minor contracts can deter potential
vendors, especially small local businesses and out-of-state or foreign
companies, from participating in state solicitations due to the time and
expense of obtaining required clearances relative to the contract size.
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The
legislature further finds that raising this compliance threshold will modernize
Hawaii's procurement practices and improve government efficiency.
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By increasing the dollar amount at which
formal vendor compliance verification is required, state agencies will be able
to expedite routine small purchases and reduce administrative burdens, freeing
up resources to focus on larger contracts and other priorities.
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Therefore,
the purpose of this Act is to raise the contract award value that triggers
required proof of vendor compliance from $2,500 to $6,000.
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SECTION
2
.
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Section 103D-310, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:
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"(c)
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All offerors, upon award of contract, shall
comply with all laws governing entities doing business in the State, including
chapters 237, 383, 386, 392, and 393.
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Offerors shall produce documents to the procuring officer to demonstrate
compliance with this subsection.
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Any
offeror making a false affirmation or certification under this subsection shall
be suspended from further offerings or awards pursuant to section
103D-702.
�
The procuring officer shall
verify compliance with this subsection for all contracts awarded pursuant to
sections 103D-302, 103D-303, 103D-304, and 103D-306, and for contracts and
procurements of [
$2,500
]
$6,000
or more awarded pursuant to section
103D-305; provided that the attorney general may waive the requirements of this
subsection for contracts for legal services if the attorney general certifies
in writing that comparable legal services are not available in [
this
]
the
State."
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SECTION
3.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 4.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Procurement;
Public Contracts; Small Purchases; Vendor Compliance
Description:
Increases
the contract award value that triggers required proof of vendor compliance from
$2,500 to $6,000.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.