THE SENATE	S.B. NO.	2498
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to claims against the state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 478-2, Hawaii Revised Statutes, is amended to read as follows:

     "§478-2  Legal rate; computation.  When there is no express written contract fixing a different rate of interest, interest shall be allowed at the rate of ten per cent a year, except that, with respect to obligations of the State, interest shall be allowed at the prime rate for each calendar quarter but in no event shall exceed ten per cent a year, as follows:

     (1)  For money due on any bond, bill, promissory note, or other instrument of writing, or for money lent, after it becomes due;

     (2)  For money due on the settlement of accounts, from the day on which the balance is ascertained;

     (3)  For money received to the use of another, from the date of a demand made; [and]

     (4)  For money upon an open account, after sixty days from the date of the last item or transaction[.]; and

(5) For money due on any settlement of claims against the State, its officers, or its employees, including claims for legislative relief.

     As used in this section, "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.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Interest; Claims Against the State; Legal Settlements

Description:

Allows interest to be collected on unfunded settlements against the State, its officers, or its employees.

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