HI SB131

Requires the Procurement Policy Board to adopt rules mandating that all state contracts include clauses imposing mandatory fines or contract termination for contractor non-performance or major delivery delays

Each contract must specify a list of deliverables, due dates, and define what constitutes a "major delay" triggering penalties

The Policy Board will establish mandatory fine amounts by rule, with different fine ranges permitted for different contract values

Exemptions apply to delays caused by circumstances beyond contractor control, emergency procurements, sole source contracts, and other contract types the Policy Board determines warrant exemption in the State's best interest

All collected fines will be deposited into the general fund; effective date is January 1, 2026