SB 1587 Hawaii Senate · 2025 Regular Session

RELATING TO RETAINAGE.

Summary

Allows procurement officers to withhold a retainage fee from the total budget from contractors to ensure satisfactory project completion. Requires the retainage fee to be paid to contractors within a certain number of days of project completion. Applies to public contracts executed on or after 1/1/2026. Effective 1/1/2491. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 23, 2025 Last action Feb 14, 2025

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What changed between versions

SB1587 → SB1587_SD1 · 6 edits

MODERATE

This bill was converted from a regular Senate bill (SB 1587) to a Senate Draft (SD1) version, which includes updated formatting, metadata, and some substantive changes to the retainage provisions. The key policy changes involve adjusting the retainage payment timeline and clarifying the definition of 'total project budget' to include contract amendments and supplementary contracts.

Scope change

The bill's scope remains focused on public contract retainage in Hawaii, but the applicability timeline was extended to apply to contracts executed on or after January 1, 2026, with an effective date of January 1, 2491.

REQUIREMENT

Changed the retainage payment timeline from 'not more than days' to 'no later than days' after contract completion, and added that payment must occur after all warranty periods are completed.

DEFINITION

Added a definition for 'total project budget' to explicitly include amounts that may be increased or decreased through contract amendments and supplementary contracts.

TIMELINE

Added Section 2 to clarify that the Act does not affect rights, penalties, or proceedings that matured or were begun before the effective date.

Added Section 4 to establish the effective date as January 1, 2491, and applicability to contracts executed on or after January 1, 2026.

TECHNICAL

Removed original bill metadata including the original bill number (I6?7) and replaced it with SD1 formatting and metadata.

Updated the bill title from 'SB1587' to 'SB1587_SD1' and added sponsor names (Finnley Brakke, Ainoa Naniole) and technical metadata fields.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from GVO (Stand. Com. Rep. No. 526) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 6, 2025

Upper · Passed

The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in GVO were as follows: 5 Aye(s): Senator(s) McKelvey, Gabbard, Moriwaki, San Buenaventura, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on GVO has scheduled a public hearing on 02-04-25 3:05PM; Conference Room 225 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to GVO, WAM.

upper

Jan 23, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors