§103-10  Payment for goods andservices.  (a)  Any person who renders a proper statement for goodsdelivered or services performed, pursuant to contract, to any agency of theState or any county, shall be paid no later than thirty calendar days followingreceipt of the statement or satisfactory delivery of the goods or performanceof the services.  In the event circumstances prevent the paying agency fromcomplying with this section, the person shall be entitled to interest from thepaying agency on the principal amount remaining unpaid at a rate equal to theprime rate for each calendar quarter plus two per cent, commencing on thethirtieth day following receipt of the statement or satisfactory delivery ofthe goods or performance of the services, whichever is later, and ending on thedate of the check.  As used in this subsection, "prime rate" meansthe prime rate as posted in the Wall Street Journal on the first business dayof the month preceding the calendar quarter.

(b)  This section shall not apply in thosecases where delay in payment is due to:

(1)  A bona fide dispute between the State or anycounty and the contractor concerning the services or goods contracted for;

(2)  A labor dispute;

(3)  A power or mechanical failure;

(4)  Fire;

(5)  Acts of God; or

(6)  Any similar circumstances beyond the control ofthe State or any county.

Where the time of payment is contingent upon thereceipt of federal funds, or federal approval, the solicitation of bids forcontracts shall clearly state that payment is contingent upon thoseconditions.  If the solicitation for bids contains the warning and a contractis awarded in response to the solicitation then interest shall not begin toaccrue upon any unpaid voucher until the thirtieth day following receipt by theState or county of the contractor's statement or the thirtieth day followingreceipt of the federal funds or approval, whichever occurs later, and shall endas of the date of the check.

(c)  All goods or services purchased by a stateagency which are less than $25, except those purchased through the use of astate procurement card, shall be paid from the petty cash funds of the agency;provided that the comptroller may establish a higher threshold for petty cashpayments and may grant exceptions to this requirement.

(d)  Any other law to the contrarynotwithstanding, the payments for goods and services obtained through use ofany state or county procurement card shall be made under the terms andconditions specified in the contract under which the procurement card wasestablished. [L 1967, c 292, §2; HRS §103-10; am L 1977, c 95, §1; am L 1984, c235, §1; am L 1985, c 281, §1; am L 1988, c 389, §1; am L 1990, c 87, §1; am L1996, c 213, §1; am L 2003, c 51, §2; am L 2004, c 203, §1]