Shortens the time in which contractors are required to be paid for goods furnished and services performed under public contracts, public procurement, and mechanic's and materialman's lien.

A BILL FOR AN ACT

SECTION 1. 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 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."

SECTION 2. Section 507-43, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Time for filing. The Application and Notice shall be filed not later than [forty-five] thirty days after the date of completion of the improvement against which it is filed. Where title to the property involved, or any portion thereof, is registered in the land court and the lien is not claimed solely against the lessees' interest in one or more leasehold time share interests as described in section 501-20, it shall be incumbent upon the lienor to file a certified copy of the Order Directing Lien To Attach in the office of the assistant registrar of the land court within seven days after the entry thereof in order to preserve the lienor's rights against subsequent encumbrancers and purchasers of the property."

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 Statutory material to be repealed is bracketed and stricken.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.