LobbyComply Blog

The Hawaii Legislature has fundamentally changed the landscape for government contractors by enacting House Bill 412. Effective January 1, 2027, this law expands the definition of “lobbying” to include certain procurement activities. If your organization pursues state contracts, these changes may require you to register as a lobbyist even if you have never considered your activities to be traditional lobbying.

Understanding the New Definition of Lobbying

Previously, Hawaii law defined lobbying primarily as communicating with officials to influence legislative or executive action or ballot issues. Under the new provisions of HB 412, lobbying now includes:

• Financial Disclosure Personnel: Communications with any person required to file financial disclosure statements with the state regarding the following procurement matters.
  • Contract Solicitation and Awards: Any communication regarding the solicitation or award of a contract by proposal before an administrative agency.
  • Vendor Relationships: Discussions concerning potential future vendor relationships with an administrative agency.

It is important to note that the law specifically excludes communications that are initiated by a legislator or a state employee.

Consequences of Non-Compliance

The state has introduced significant penalties to ensure adherence to these transparency requirements. Any contract or action entered into by the state that is found to be in violation of lobbying laws may be voidable within 60 days after a violation is determined. The Attorney General, in coordination with the affected purchasing agency, holds the authority to enforce these penalties.

Determining If You Must Register

Not every vendor interaction will trigger a registration requirement. Registration is typically based on specific thresholds, including:

• The amount of compensation received for lobbying activities.
• The total time spent lobbying during a specific reporting period or calendar year.
• The total expenditures made toward lobbying efforts.

Frequently Asked Questions

When do these procurement lobbying changes actually take effect? While the bill was enacted on May 16, 2025, the expanded definition, specifically targeting procurement and vendor relationships, does not take effect until January 1, 2027. This provides organizations a window to assess their current business development strategies and internal compliance protocols.

Does this mean every sales meeting with a state agency is now “lobbying”? Not necessarily. The law focuses on communications concerning the “solicitation or award of a contract by proposal” or “potential future vendor relationships”. Standard administrative inquiries or communications initiated by the state employee are generally excluded. However, because the line between “sales” and “influence” is now thinner, a formal assessment of your activities is highly recommended.

How can I stay updated on these and other state compliance changes? Rules regarding procurement and lobbying are subject to frequent shifts. For in-house teams who need a reliable reference, our Guidebooks provide up-to-date regional data and statutory summaries. If your organization requires a more tailored approach to navigate these new Hawaii requirements, our Consulting team offers hands-on assistance to ensure your procurement efforts remain compliant and your contracts secure.

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