Bill > SB131

This bill requires the Procurement Policy Board (a government body responsible for procurement regulations) to establish new rules for state contracts that mandate specific penalties for contractor non-performance or significant delays. The new rules will require each contract to include clauses that: clearly list specific deliverables and their due dates, define what constitutes a "major delay", establish mandatory fines or contract termination procedures for non-performance or major delays, and create a graduated fine schedule based on contract value. The mandatory fines will be set by the policy board and deposited into the state's general fund. The bill provides some exceptions to these rules, such as for certain types of contracts or delays beyond a contractor's control. These new penalties are intended to be additional to any existing contractual or legal penalties, and are designed to provide more rigorous oversight and accountability in state procurement processes. The bill will take effect on January 1, 2026, and will not retroactively affect contracts or proceedings that began before its effective date.

Government Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=131&year=2026