HOUSE OF REPRESENTATIVES

H.B. NO.

1415

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to procurement.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 103D-324, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Unless the policy board determines otherwise by rules, the following bonds or security shall be delivered to the purchasing agency and shall become binding on the parties upon the execution of the contract if the contract which is awarded exceeds $25,000 and is for construction, or the purchasing agency secures the approval of the chief procurement officer:

     (1)  A performance bond in a form prescribed by the rules of the policy board, executed by a surety company authorized to do business in this State or otherwise secured in a manner satisfactory to the purchasing agency, for the protection of all persons supplying labor and material to the contractor for the performance of the work provided for in the contract, in an amount equal to one hundred per cent of the price specified in the contract; provided that:

          (A)  The surety company shall be independent from any of the parties of the awarded bid, which shall include any individuals or companies involved with the awarded bid;

          (B)  No surety company or bond company can be revoked or dismissed until ninety days after completion of the project and all claims, torts, and liens have been settled; and

          (C)  All surety companies and bond companies involved with the project shall be United States Treasury listed bond companies;

     (2)  A payment bond in a form prescribed by the rules of the policy board, executed by a surety company authorized to do business in this State or otherwise secured in a manner satisfactory to the purchasing agency, for the protection of all persons supplying labor and material to the contractor for the performance of the work provided for in the contract.  The bond shall be in an amount equal to one hundred per cent of the price specified in the contract; or

     (3)  A performance and payment bond which satisfies all of the requirements of paragraphs (1) and (2)."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Procurement Code; Performance Bonds

 

Description:

Establishes additional performance bond requirements for surety companies and bond companies under the Hawaii Public Procurement Code.

 

 

 

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