CONFERENCE COMMITTEE REP. NO. 229-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2075

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2075, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC PROCUREMENT,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Require purchasing agencies to apply a five percent flat rate local preference in evaluating bids or proposals from qualified Hawaii bidders or offerors who submit a timely preference certification;

(2) Establish criteria for a bid or proposal to qualify for a local preference;

(3) Establish requirements for the qualification and certification of Hawaii bidders and offerors and consequences for failure to maintain qualification; and

(4) Require the Procurement Policy Board to adopt rules.

Your Committee on Conference finds that public procurement provides an opportunity for the State to directly bolster the local economy through the establishment of a local preference program. This measure adopts a strategy already used in many jurisdictions but carefully structured to promote economic development in compliance with applicable laws.

Your Committee on Conference has amended this measure by:

(1) Specifying that the Hawaii bidder preference may only be applied when:

(A) The total preference amount does not exceed $500,000; and

(B) The total bid price is less than $10,000,000;

(2) Specifying that Hawaii offeror preference may only be applied when:

(A) The total preference amount does not exceed $500,000; and

(B) The total contract value is less than $10,000,000;

(3) Inserting an effective date of July 1, 2026; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2075, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2075, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ GREGGOR ILAGAN Co-Chair	____________________________ ANGUS L.K. MCKELVEY Chair
____________________________ IKAIKA HUSSEY Co-Chair	____________________________ GLENN WAKAI Co-Chair