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GM 1365

Informing the Legislature that on July 1, 2025, the Governor signed the following bill into law: SB383 SD2 HD1 CD1 (ACT 262).

2025 Regular Session

Hawaii Act 262 raises small-purchase threshold to $50k–$250k, requires electronic processing, and mandates a 2026 Legislature report on efficiency and impact for state vendors.

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Bill Summary · GM 1365

Summary of Act 262 (SB383 SD2 HD1 CD1) Relating to Small Purchases

Overview

Act 262, signed into law on July 1, 2025, updates Hawaii’s small purchase procurement thresholds and requires electronic processing, with a commitment to evaluate the measure’s effectiveness through a legislative report. The act aims to improve efficiency in purchasing, particularly in the context of rising costs and disaster-related needs.

Key Provisions

  • Threshold Increase for Small Purchases: Amend Section 103D-305(c) to apply small purchase procedures to procurements of $50,000 to less than $250,000, up from the prior threshold of $25,000 to less than $250,000.
  • Electronic System Requirement: These small purchases must be conducted through an electronic system.
  • Reporting Requirement: The State Procurement Office must submit to the Legislature, no later than twenty days before the convening of the regular session in 2026, a report on the efficacy of the increased threshold and any proposed legislation.

Effective Date

  • The act takes effect upon approval (the signing date of July 1, 2025).

Affected Entities

  • State procurement office and state agencies that participate in small purchase procurements.
  • Vendors and suppliers engaging in small purchases under the revised threshold.
  • The Legislature, which will receive a performance/effectiveness report in 2026.

Rationale and Context

The act’s findings emphasize escalating costs of goods and the need for more efficient procurement, highlighting the post-pandemic environment and disaster recovery considerations (including references to Hawai‘i’s earthquake indicators and the 2023 Maui wildfires). The changes are intended to streamline mid-range purchasing and support timely disaster response and recovery efforts.

Administrative and Procedural Details

  • Section 2: Formal revision of the threshold and the electronic-system requirement.
  • Section 3: Establishes the 2026 reporting timeline and scope for findings and recommendations.
  • Section 4: Clarifies that the act does not affect existing rights, duties, penalties, or ongoing proceedings.
  • Section 5: Stricken.
  • Section 6: Formatting note (new material underscored; repealed material bracketed).

Status

  • Bill Number: GM 1365 (Governor’s proclamation informing the signing)
  • Act: 262
  • Introduced/Status: Received July 1, 2025; SB383 SD2 HD1 CD1 signed into law on July 1, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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