HB2553

SECTION 1. The legislature finds that, although the Hawaii state building codes allow for the use of alternative materials, designs, and methods of construction, current practice by state and county building officials suggests that these code provisions are being narrowly interpreted to limit or prevent the use of alternative systems. This restricts competition, increases housing costs, and slows the availability of critical housing projects.

The legislature further finds that some affordable and efficient construction systems offered by vendors operating in the State meet building code requirements but are not considered or approved for construction despite their ability to provide the same or better safety and durability aspects at lower costs. This problem is particularly acute in the rebuilding efforts in Lahaina and in other communities with urgent housing needs.

The legislature also finds that Hawaii's recovery and resilience depend on a building code and planning review process that can effectively evaluate newer, safer, more efficient, and less costly technologies. Reliance on a narrow set of preferred construction systems or suppliers slows innovation, lengthens timelines, and contributes to higher construction costs.

Accordingly, the purpose of this Act is to provide greater flexibility for the use of alternative materials, designs, or methods of construction within the specifications of the Hawaii state building codes.

SECTION 2. Chapter 107, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§107- Hawaii state building codes; alternative materials, designs, and methods. (a) In adopting the Hawaii state building codes, the council shall include provisions requiring building officials, when evaluating proposed alternative materials, designs, or methods of construction for detached one- and two-family dwellings and townhouses, to approve alternatives that:

(1) Provide equal or greater fire resistance and life safety;

(2) Meet or exceed the applicable code's requirements for structural and material quality and durability; or

(3) Are more economically feasible or capable of being constructed in a shorter time than prescriptive methods, while maintaining compliance with the intent of the applicable code.

(b) The approval of the proposed alternative materials, designs, or methods of construction may require a certification from an individual having an appropriate license from the State or an international body. An international certification based on metric measurements shall not be a basis for denying any proposed alternative material, design, or method of construction."

SECTION 3. Section 103D-302, Hawaii Revised Statutes, is amended to read as follows:

"§103D-302 Competitive sealed bidding. (a) Contracts shall be awarded by competitive sealed bidding except as otherwise provided in section 103D-301. Awards of contracts by competitive sealed bidding may be made after single or multi-step bidding. Competitive sealed bidding does not include negotiations with bidders after the receipt and opening of bids. Award is based on the criteria set forth in the invitation for bids.

(b) An invitation for bids shall be issued, and shall include a purchase description and all contractual terms and conditions applicable to the procurement. If the invitation for bids is for construction, it shall specify that all bids include the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in the performance of the contract and the nature and scope of the work to be performed by each. Construction bids that do not comply with this requirement may be accepted if acceptance is in the best interest of the State and the value of the work to be performed by the joint contractor or subcontractor is equal to or less than one per cent of the total bid amount.

(c) Adequate public notice of the invitation for bids shall be given a reasonable time before the date set forth in the invitation for the opening of bids. The policy board shall adopt rules which specify:

(1) The form that the notice is to take;

(2) What constitutes a reasonable interim between publication and bid opening; and

(3) How notice may be published, including publication in a newspaper of general circulation, notice by mail to all persons on any applicable bidders mailing list, publication by any public or private telecommunication information network, or any other method of publication it deems to be effective.

(d) Bids shall be opened publicly in the presence of one or more witnesses, at the time and place designated in the invitation for bids. The amount of each bid and other relevant information specified by rule, together with the name of each bidder shall be recorded. The record and each bid shall be open to public inspection.

(e) Bids shall be unconditionally accepted without alteration or correction, except as authorized in this chapter or by rules adopted by the policy board.

(f) Bids shall be evaluated based on the requirements set forth in the invitation for bids. These requirements may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be as objectively measurable as possible, such as discounts, transportation costs, total or life cycle costs, and the bidder's past performance, if available. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bids. Bids shall not be disqualified or deemed non-responsive solely because they utilize metric or standard measurement systems.

(g) Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of invitations for bids, awards, or contracts based on such bid mistakes, shall be permitted in accordance with rules adopted by the policy board. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the public or to fair competition shall be permitted. Except as otherwise provided by rule, all decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the chief procurement officer or head of a purchasing agency.

(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. 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.

(i) In cases of awards for a construction project made under this section, non-selected offerors may submit to the procurement officer a written request for debriefing within three working days after the posting of the award of the contract. Thereafter, the procurement officer shall provide the non-selected offeror a prompt debriefing, including a comprehensive written technical and cost evaluation report, that articulates specific findings demonstrating that the awarded bid was either:

(1) Technically superior, as evidenced by the superior quality of materials, enhanced hurricane and fire resistance, or fitness for purpose and site-specific context, in conformance with International Code Council standards, Construction Specifications Institute guidelines, and standards under section 107- ; or

(2) Lower in cost while meeting or exceeding minimum safety criteria under section 107- and as defined by the Construction Specifications Institute.

Any protest by the non-selected offeror pursuant to section 103D-701 shall be filed in writing with the procurement officer within five working days after the date on which the debriefing is received.

[~~(i)~~] (j) When it is not practicable to initially prepare a purchase description to support an award based on price, an invitation for bids, which requests the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation, may be used. If a multi-step sealed bidding process is used, the notice and the invitation for bids shall describe each step to be used in soliciting, evaluating, and selecting unpriced offers."

SECTION 4. Section 103D-701, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The chief procurement officer or a designee shall resolve any protest as expeditiously as possible. If the protest is not resolved by mutual agreement, the chief procurement officer or a designee shall issue a written decision to uphold or deny the protest. The decision shall:

(1) State the reasons for the action taken; and

(2) Inform the protestor of the protestor's right to an administrative proceeding as provided in this part, if applicable.

If the protest of a construction contract or airport contract that is awarded pursuant to section 103D-302 or 103D-303 is not resolved by mutual agreement, the chief procurement officer or a designee shall issue a written decision to uphold or deny the protest within seventy-five calendar days of receipt of the protest; provided that the chief procurement officer or a designee may grant an extension based on written justification of the extenuating circumstances; provided further that the extension shall not exceed forty-five calendar days.

If a debriefing under section 103D‑302(i) is requested by a non-selected offeror and:

(1) The debriefing does not include a report in compliance with that subsection, and

(2) The protest is not resolved by mutual agreement,

the protester shall have the right to require a mandatory re‑assessment of all bids wherein the state representative and senator of the district in which the project is located shall each cast a binding vote in the re-award process."

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2553
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII