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



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



(1)  A bona fide dispute between the State or any
county 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 of
the State or any county.



Where the time of payment is contingent upon the
receipt of federal funds, or federal approval, the solicitation of bids for
contracts shall clearly state that payment is contingent upon those
conditions.  If the solicitation for bids contains the warning and a contract
is awarded in response to the solicitation then interest shall not begin to
accrue upon any unpaid voucher until the thirtieth day following receipt by the
State or county of the contractor's statement or the thirtieth day following
receipt of the federal funds or approval, whichever occurs later, and shall end
as of the date of the check.



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



(d)  Any other law to the contrary
notwithstanding, the payments for goods and services obtained through use of
any state or county procurement card shall be made under the terms and
conditions specified in the contract under which the procurement card was
established. [L 1967, c 292, §2; HRS §103-10; am L 1977, c 95, §1; am L 1984, c
235, §1; am L 1985, c 281, §1; am L 1988, c 389, §1; am L 1990, c 87, §1; am L
1996, c 213, §1; am L 2003, c 51, §2; am L 2004, c 203, §1]