HI HB1325

Amends Hawaii Revised Statutes Section 103D-324 to add proof of insurance as a required bonding requirement for public construction contracts exceeding $25,000.

Requires contractors to obtain insurance through a company authorized to do business in Hawaii covering at least 50% of the project's construction costs to enable the State to fund repairs for construction defects discovered within 10 years after contract completion.

Excludes normal wear and tear from insurance coverage requirements.

Authorizes the State to institute legal action against contractors for the full costs of curing construction defects discovered within 10 years after contract completion, with suits brought in the circuit court where the project is located.

Takes effect on July 1, 2112.