HI HB2735

Establishes a preference for hiring Hawaii residents on construction contracts under public procurement law, applying to contracts under HRS §103D-302 or §103D-303.

Requires contractors to certify under oath that at least 80% of the workforce is comprised of Hawaii residents, calculated by dividing total hours worked by residents by total hours worked by all employees, excluding hours in shortage trades.

Allows bids including the Hawaii resident certification to be awarded only if the bid amount is not more than 15% higher than competing bids without the certification.

Imposes sanctions on contractors failing to meet the 80% requirement after certification, including work suspension, payment withholding, project disqualification, fund recovery, and debarment proceedings.

Does not apply if doing so conflicts with federal law or would disqualify state or county agencies from receiving federal funds or aid.