HB 1414: Procurement; Competitive Sealed Bidding; Contract Award; Best Interests of the State
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-02-27
Current Status:
Failed
(2026-03-24: The committee on GVO deferred the measure.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Authorizes the head of a procurement agency to award a contract to a bidder who is not the lowest responsible and responsive bidder, for procurements conducted by competitive sealed bidding, if the head of the procuring agency determines that the award is most beneficial to taxpayers or otherwise in the best interests of the State. Effective 7/1/3000. (HD1)
For procurements conducted by competitive sealed bidding, authorizes the head of a procurement agency to award a contract to a bidder who is not the lowest responsible and responsive bidder if the head of the procuring agency determines that the award is most beneficial to taxpayers or otherwise in the best interests of the State.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1414 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PROCUREMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:
"(h) The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and responsive bidder
whose bid meets the requirements and criteria set forth in the invitation for
bids[.]; provided that, if the purchasing agency determines that an
award made to the lowest responsible and responsive bidder is not in the best
interests of the State, the head of the purchasing agency, with the approval of
the chief procurement officer, may award the contract to the responsible and
responsive bidder whose bid is most beneficial to taxpayers or otherwise in the
best interests of the State. In the
event all bids exceed available funds as certified by the appropriate fiscal
officer, the head of the purchasing agency responsible for the procurement in
question is authorized in situations where time or economic considerations
preclude resolicitation of work of a reduced scope to negotiate an adjustment
of the bid price, including changes in the bid requirements, with the low
responsible and responsive bidder, in order to bring the bid within the amount
of available funds."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000.
Report Title:
Procurement; Competitive Sealed Bidding; Contract Award; Best Interests of the State
Description:
Authorizes the head of a procurement agency to award a contract to a bidder who is not the lowest responsible and responsive bidder, for procurements conducted by competitive sealed bidding, if the head of the procuring agency determines that the award is most beneficial to taxpayers or otherwise in the best interests of the State. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1414 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:
"(h) The contract shall be awarded with reasonable
promptness by written notice to the lowest responsible and responsive bidder
whose bid meets the requirements and criteria set forth in the invitation for
bids[.]; provided that, if the purchasing agency determines that an
award made to the lowest responsible and responsive bidder is not in the best
interests of the State, the head of the purchasing agency, with the approval of
the chief procurement officer, may award the contract to the responsible and
responsive bidder whose bid is most beneficial to taxpayers or otherwise in the
best interests of the State. In the
event all bids exceed available funds as certified by the appropriate fiscal
officer, the head of the purchasing agency responsible for the procurement in
question is authorized in situations where time or economic considerations
preclude resolicitation of work of a reduced scope to negotiate an adjustment
of the bid price, including changes in the bid requirements, with the low
responsible and responsive bidder, in order to bring the bid within the amount
of available funds."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Procurement; Competitive Sealed Bidding; Contract Award; Best Interests of the State
Description:
For procurements conducted by competitive sealed bidding, authorizes the head of a procurement agency to award a contract to a bidder who is not the lowest responsible and responsive bidder if the head of the procuring agency determines that the award is most beneficial to taxpayers or otherwise in the best interests of the State.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Mar 24, 2026 | The committee on GVO deferred the measure. |
| Mar 19, 2026 | The committee(s) on GVO deferred the measure until 03-24-26 3:00PM; CR 225 & Videoconference. |
| Mar 17, 2026 | The committee(s) on GVO deferred the measure until 03-19-26 3:00PM; Conference Room 225 & Videoconference. |
| Mar 12, 2026 | The committee(s) on GVO has scheduled a public hearing on 03-17-26 3:05PM; Conference Room 225 & Videoconference. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 6, 2025 | Referred to GVO, WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 370). |
| Mar 4, 2025 | Passed Third Reading with Representative(s) Belatti, Cochran, Iwamoto, Perruso voting aye with reservations; Representative(s) Amato, Kong, Lamosao, Souza voting no (4) and Representative(s) Kapela, Pierick, Ward excused (3). Transmitted to Senate. |
| Feb 28, 2025 | Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with Representative(s) Amato voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 995) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading. |
| Feb 26, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Alcos, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Ward. |
| Feb 24, 2025 | Bill scheduled to be heard by FIN on Wednesday, 02-26-25 10:50AM in House conference room 308 VIA VIDEOCONFERENCE. |
| Jan 27, 2025 | Referred to FIN, referral sheet 4 |
| Jan 23, 2025 | Introduced and Pass First Reading. |
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Date
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Description
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Location
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Votes
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| Mar 4, 2025 | Third Reading | House Floor |
Passed |
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| Feb 26, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Department of Budget and Fiscal Services, City and County of Honolulu | ** Against | |
| Department of Budget and Fiscal Services | *** Against | Feb 26, 2025 |
| General Contractors Association of Hawaii | *** Against | Mar 17, 2026 |
| State Procurement Office | *** Against | Feb 26, 2025 |
| State Procurement Office | *** Against | Mar 17, 2026 |
STAND. COM. REP. NO. 995
Honolulu, Hawaii
, 2025
RE: H.B. No. 1414
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 1414 entitled:
"A BILL FOR AN ACT RELATING TO PROCUREMENT,"
begs leave to report as follows:
Your Committee finds that the existing procurement process prioritizes awarding contracts to the lowest responsible and responsive bidder, but may not always serve the best interests of the State. This measure provides greater flexibility by allowing the purchasing agency, with proper approval, to award contracts based on overall benefit to taxpayers while maintaining transparency and fiscal responsibility.
Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1414, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1414, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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Date
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Testimony PDF
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| Mar 17, 2026 | HB1414_HD1_TESTIMONY_GVO_03-17-26_.PDF |
| Feb 26, 2025 | HB1414_TESTIMONY_FIN_02-26-25_.PDF |
Discussed in Hearing
1MIN
Senate Standing Committee on Government Operations
1MIN
Senate Standing Committee on Health and Human Services
30SEC
Senate Standing Committee on Government Operations
30SEC
Senate Standing Committee on Public Safety and Military Affairs
9MIN
Senate Standing Committee on Government Operations
9MIN
Senate Standing Committee on Energy and Intergovernmental Affairs
2MIN
House Floor
4MIN
House Standing Committee on Finance
Bill Author
Bill Co-Author(s):