Bill Text: HI HB1232 | 2015 | Regular Session | Introduced
Bill Title: Contractor Payment
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-02-18 - The committee(s) on CPC recommend(s) that the measure be deferred. [HB1232 Detail]
Download: Hawaii-2015-HB1232-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1232 |
TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONTRACTORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 444-25, Hawaii Revised Statutes, is amended to read as follows:
"§444-25 Payment for goods and
services. A contractor shall pay the contractor's subcontractor for any
goods and services rendered within ten days after receipt of an invoice by the
subcontractor that includes any supporting documents as required by the terms
of the subcontract [and after receipt by the contractor of payment from the
owner for the subcontractor's work, whichever occurs later]. The
subcontractor shall be entitled to receive interest on the unpaid amount at the
rate of [one and one-half] 1.5 per cent per month from the date
payment is due; provided that this section shall not apply if the delay in
payment is due to a bona fide dispute between the contractor and the
subcontractor concerning the goods and services contracted for.
If payment is contingent upon receipt of funds held in escrow or trust, the contractor shall clearly state this fact in the contractor's solicitation of bids. If the solicitation for bids contains the statement that the time of payment is contingent upon the receipt of funds held in escrow or trust and a contract is awarded in response to the solicitation, interest shall not begin to accrue upon any unpaid balance until after the tenth day following receipt by the contractor of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and receipt of the escrow or trust funds, whichever occurs later; provided that this section shall not apply if the delay in payment is due to a bona fide dispute between the subcontractor and the contractor concerning the goods and services contracted for.
This section shall not apply to chapter 103 or any section affecting public contracts."
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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
INTRODUCED BY: |
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Report Title:
Contractor Payment
Description:
Requires a contractor to pay a subcontractor within 10 days after receipt of an invoice by the subcontractor that includes any supporting documents pursuant to the subcontract terms.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.