HB 723 Summary

• Mandates state agencies to apply a 15% preference to bids submitted by local vendors when goods, services, or construction meet specifications and are available at reasonable cost (defined as no more than 15% above the lowest non-local bid).

• Allows state agencies to split contracts into smaller parcels to enable multiple local vendors to bid on portions of state procurement contracts, provided the split does not significantly compromise efficiency or increase costs and receives procurement officer certification.

• Defines "local vendor" as a business headquartered in Hawaii that primarily employs Hawaii residents.

• Requires each state agency to submit annual reports to the legislature detailing the percentage of procurement from local vendors, implementation challenges, and recommendations for further legislative action.

• Directs the procurement policy board to adopt rules implementing the Act, including guidance on contract splitting, vendor certification, and reporting requirements by July 1, 2025.