HI SB131

Requires the Procurement Policy Board to adopt rules mandating contract clauses that impose mandatory fines, contract termination for default, or both when contractors fail to perform duties or cause major delays in deliverables

Contracts must include a list of specific deliverables, due dates, and definitions of what constitutes a "major delay" triggering penalties

Policy Board will establish mandatory fine amounts by rule, with potential for different fine ranges based on contract values

All fines collected will be deposited into the general fund and are in addition to any other authorized penalties

Exemptions apply to delays caused by government actions, small purchases, emergency procurements, and other circumstances determined by the Policy Board to be in the State's best interest; effective January 1, 2026