The new provisions within HB1953 amend Section 102-10 of the Hawaii Revised Statutes, allowing adjustments to contract terms for concessionaires who experience a decrease of 15% or more in business volume over a specified duration. This flexibility is intended to help those under holdover or revocable permits, who may not have access to the same relief measures as those under lease agreements. As such, the bill impacts existing laws governing public contracts and could set a precedent for future management of concession operations.
House Bill 1953 relates to concessions within the state of Hawaii, specifically focusing on the flexibility and discretion granted to the Department of Transportation in addressing substantial hardship situations faced by concessionaires. The bill's primary aim is to allow relief for contracts affected by declines in business due to factors such as construction work on or adjacent to public property. This aims to support concessionaires who are struggling during unpredictable crises, ensuring continued service and operations to passengers.
The sentiment surrounding HB1953 seems to be supportive, particularly among those advocating for the interests of concessionaires during challenging times. The bill has garnered bipartisan approval, suggesting that there is a consensus on the importance of providing necessary support to local businesses impacted by external factors beyond their control. By prioritizing the stability of these concessions, the bill is seen as a proactive step towards maintaining operational continuity and service provision at public facilities.
While the bill generally enjoys backing, there may still be concerns regarding the potential implications for existing contractual obligations, especially for those contracts involving bondholders or other parties. The ability of government officials to modify contract terms could lead to questions about fairness and equity among different concessionaires, particularly in how relief is applied. Ensuring that modifications do not impair existing legal agreements will be crucial as the bill moves forward.