Bill > SB3249

This bill, effective January 1, 2525, modifies the rules for procurement protests in Hawaii by requiring that if a party initiating a protest does not win their case and the Office of Administrative Hearings (OAH), which handles these disputes, determines the appeal was made in bad faith, then half of the cash or protest bond they initially paid will be forfeited and deposited into the state's general fund. Previously, a full forfeiture could occur if the appeal was deemed frivolous or made in bad faith, but this bill narrows the condition for forfeiture to only bad faith and reduces the amount forfeited to half of the bond. The purpose of these changes is to address rising construction costs attributed to prolonged procurement protests and to expedite project construction by discouraging frivolous or bad faith appeals.

Government Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3249&year=2026