SB 2402 Summary

• Amends Hawaii Revised Statutes Section 102-10 to give the Department of Transportation discretion to modify airport concession contracts when concessionaires face significant hardship, without requiring prior approval authority.

• Allows DOT to grant relief including contract extensions, rent adjustments, assumption or transfer of contracts, permit modifications, and withdrawal without default or future business restrictions.

• Defines "significant hardship" to include business volume reductions of 15% or more for 60+ days, construction delays exceeding 90 days, unexpected circumstances making improvements infeasible, unequal relief terms among concessionaires, and contract term extensions needed for cost recovery.

• Caps airport concession contract terms at 25 years maximum, including any extensions, and exempts airport concessions from Chapter 171 statutory requirements when conflicting with this section's purposes.

• Takes effect upon approval and is intended to address COVID-19 pandemic impacts on airport concessions by providing flexibility similar to relief mechanisms available at mainland airports.