Legislative Priorities: 2026 Session
MID-SESSION 2026
This mid-session report identifies key measures affecting the construction industry during the first half of the legislative session. There are 877 measures still alive at the midpoint of this year’s legislative session out of the 2,457 measures introduced. The GCA’s Legislative Committee determined our advocacy position for each measure identified below. Please note that this list is not exhaustive of every measure affecting the industry and that the substance of each measure may evolve as the session progresses.
For a full list of measures affecting the industry click here.
KEY MEASURES STILL ALIVE
Applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies. Appropriates funds for a position in the Department of Taxation.
Position: Support
The GCA’s support of this measure is limited to the provision that provides funding to the Department of Taxation for one permanent full-time employee to investigate mainland contractors who are awarded federal contracts, but do not pay the State’s General Excise Tax (GET).
Requires the forfeiture of half of the cash or protest bond for review of procurement-related disputes if the initiating party does not prevail in an administrative proceeding and the Office of Administrative Hearings finds that the appeal was made in bad faith.
Position: Oppose
Last year, the legislature passed the requirement of a finding that an appeal is frivolous or in bad faith before the protest bond is forfeited to the State by the non-prevailing party in an effort to strengthen procurement ethics.
The Legislature inserted this safeguard language that the other states who require cash or protest bonds without a cap use for appeals to also prevent the chilling effect of deterring legitimate protests on large projects. This provision ensures a balance that deters frivolous appeals without the unintended consequence of also deterring legitimate appeals on large projects.
However, this measure seeks to amend this requirement by removing the finding that the appeal be found frivolous before the bond is lost.
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.
Position: Oppose
The primary purpose of the Procurement Code to is ensure fair and ethical procurement while maximining the use of public funds. This measure would go against the two prongs of the purpose of a procurement code. A bidder who is determined to be responsible and responsive has met the requirements to bid for the work. Allowing the head of the procuring agency to award it to any bidder they want would open the door to unethical procurement and circumvent the primary purpose of having a procurement code.
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for new housing development.
Position: Support
This measure will explicitly enable the Legislature to authorize counties to issue tax increment bonds. This will allow for the utilization of Housing Infrastructure growth bonds (HIG), which is a necessary financing tool for the development of infrastructure. HIG is authorized in 48 states and is a value-capture financing tool that allows local governments to fund infrastructure upfront and repay that investment using a portion of the future increase in tax revenue generated by the development the infrastructure enables.
Authorizes SHPD to conduct a phased review of a proposed project on private property under certain circumstances. Amends the process and deadlines by which SHPD must provide written concurrence or non-concurrence for a proposed project on private property or other project that requires entitlement for use, after which concurrence may be assumed and the project may proceed.
Position: Support
By modernizing the review process, this measure supports timely development of residential and mixed-use projects particularly transit-oriented development while continuing to uphold Hawaii’s commitment to protecting its cultural and historic heritage.
OPENING 2026
The 2026 Legislative Session opened on January 21 with the Legislature and Governor focusing on addressing the effects of the housing crisis, cost of living, and long-term economic stability. There were 2,457 total measures introduced this year. The GCA Legislative Committee met on Friday, January 30th, to review 211 measures that were identified as affecting the construction industry. The Committee focused on opposing efforts attempting to raise the cost of construction, supporting/opposing various procurement code amendments, and supporting state construction initiatives. Please find a list of those measures here.
The Legislative Committee identified several measures that will have a significant impact on the industry. These measures include:
Applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies. Appropriates funds for a position in the Department of Taxation.
Position: Support
This measure provides funding to the Department of Taxation for one permanent full-time employee to investigate mainland contractors who are awarded federal contracts, but do not pay the State’s General Excise Tax (GET).
Requires the forfeiture of cash or protest bond in an administrative proceeding for review of procurement-related disputes if the initiating party does not prevail.
Position: Oppose
The GCA passed legislation several years ago to incorporate ethical safeguards that all other states require if there is a requirement to post a bond to file an administrative appeal. This measure seeks to repeal those ethical safeguards by removing that an appeal must be deemed frivolous before the forfeiture of a bond occurs.
Proposes constitutional amendments to expressly provide that the Legislature may authorize political subdivisions, such as the counties, to issue housing infrastructure growth bonds, and exclude these bonds from determinations of the funded debt of the political subdivisions for specified public works, public improvements, or other actions necessary for new housing development.
Position: Support
This measure will explicitly enable the Legislature to authorize counties to issue tax increment bonds. This will allow for the utilization of Housing Infrastructure Growth bonds (HIG), which is a necessary financing tool for the development of infrastructure. HIG is authorized in 48 states and is a value-capture financing tool that allows local governments to fund infrastructure upfront and repay that investment using a portion of the future increase in tax revenue generated by the development that the infrastructure enables.
Authorizes SHPD to conduct a phased review of a proposed project on private property under certain circumstances. Amends the process and deadlines by which SHPD must provide written concurrence or non-concurrence for a proposed project on private property or other project that requires entitlement for use, after which concurrence may be assumed and the project may proceed.
Position: Support
By modernizing the review process, this measure supports timely development of residential and mixed-use projects particularly transit-oriented development while continuing to uphold Hawaii’s commitment to protecting its cultural and historic heritage.
The Legislative Committee will continue to meet around the various legislative deadlines to review and comment on the measures moving throughout the Legislature.
Go to the:
2025 Session
2024 Session
2023 Session
2022 Session
2021 Session
Interested in finding out more about the GCA Legislative Committee: click here.
GCA Members, interested in joining? Contact Gladys at info@gcahawaii.org.