HI HB723

Requires state agencies to give preference to local vendors (businesses headquartered in Hawaii that primarily employ Hawaii residents) when purchasing goods, services, or construction, applying a 15% preference to bids from local vendors

Allows agencies to split contracts into smaller parcels so multiple local vendors can bid for and secure portions of state procurement contracts, provided it doesn't significantly compromise efficiency or unreasonably increase costs

Defines "reasonable cost" as costs not exceeding 15% more than the lowest responsible bid from a non-local vendor

Mandates state agencies submit annual reports to the legislature detailing the percentage of procurement from local vendors, implementation challenges, and recommendations for enhancing local procurement

Requires the procurement policy board to adopt rules authorizing multiple awards when they promote efficiency, expand opportunities for local vendors, and support best value for public funds; effective July 1, 2025