Bill Text: HI HB987 | 2012 | Regular Session | Introduced
Bill Title: Public Money; Payment for Goods and Services
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB987 Detail]
Download: Hawaii-2012-HB987-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
987 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to payment for goods and services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that nationally, state and local governments contract with nonprofits – particularly human service organizations – to deliver pivotal services to individuals, families and communities. In October 2010, the Urban Institute released three related reports, including a "National Study of Nonprofit-Government Contracting, State Profiles", which outlined a variety of problems faced by these nonprofits.
Nationally, nearly thirty-three thousand human service providers had almost two hundred thousand government contracts in 2009. Despite the prevalence and importance of government contracting, most nonprofits experienced some problem with their government contracts and grants. Key problems include payments not covering full program costs, complex and time-consuming applications and reporting, changes to contractual and grant agreements, and late payments. In Hawaii, one hundred sixty-one human service nonprofits provided services to governments in 2009, and fifty per cent reported problems with late payments – substantially higher than the national average of forty-one per cent.
The legislature further finds that nonprofits are not alone in dealing with the problems outlined in the Urban Institute data. Small businesses that contract with governments report the same concerns and face the same negative consequences. Both nonprofits and businesses struggle to make ends meet in an economy that continues to falter.
In 2010, the senate committee on economic development and technology and the house committee on economic revitalization, business, and military affairs convened an informal small business discussion group to address the most critical issues facing the small business sectors within Hawaii's economy. Representatives from the Chamber of Commerce of Hawaii, construction and trades industries, community nonprofits, the agricultural sector, food and restaurant industries, retailing, the science and technology sector, the commercial transportation industry, and interested stakeholders developed a package of bills that address the most pressing problems facing Hawaii's small business community.
The purpose of this Act is to support the findings of the small business working group and recommendations to require more timely payments by governments for goods and services.
SECTION 2. Section 103-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(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]
fifteen 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] sixteenth
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[.]; provided that the check shall be dispersed not later than
forty-five calendar days following receipt of the statement or satisfactory
delivery of the goods or performance of the services. 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."
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.
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INTRODUCED BY: |
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Report Title:
Public Money; Payment for Goods and Services
Description:
Requires payments by governments for goods and services to be made within fifteen days of receipt of the statement or satisfactory delivery of the goods or performance of the services; if mitigating circumstances, interest begins on sixteenth day; payment required no later than forty-five days from receipt of the statement or satisfactory delivery of the goods or performance of the services.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
