General Provisions

HRS div. 1, tit. 9, ch. 103, pt. I

in effect

HRS §103-1 What warrants prohibited

103-1. What warrants prohibited No warrants shall be drawn for any sum on account of any salary or payroll in excess of the amount then due, nor shall any warrant for any purpose be drawn except in accordance with the provisions of law. [L 1909, c 62, §4; RL 1925, §1480; RL 1935, §110; RL 1945, §367; RL 1955, §9-1; HRS §103-1]

HRS §103-1.5 Definitions

103-1.5. Definitions The definitions of chapter 103D shall apply to this chapter unless the context clearly requires otherwise. L 1999, c 149, §1

HRS §103-4 Expenditure from general appropriation unlawful, when

103-4. Expenditure from general appropriation unlawful, when Whenever a specific appropriation is made for a particular object, it shall be unlawful to make any expenditure from a general appropriation which would otherwise cover such particular object. [L 1909, c 62, §5; RL 1925, §1481; RL 1935, §111; RL 1945, §368; RL 1955, §9-3; HRS §103-4]

HRS §103-6 Temporary use of funds

103-6. Temporary use of funds The state and county directors of finance may, with the consent of the governor, in the case of state funds, and of the council, in the case of county funds, use any portion of moneys belonging to any funds under their control, except pension or retirement funds, funds set aside for the redemption of bonds or the payment of interest thereon, and private trust funds, for the purpose of paying warrants drawn against any fund temporarily depleted. All sums so used shall be repaid to the credit of the fund from which taken immediately after the replenishment of such depleted fund. Whenever there are moneys in any fund of any county, except pension or retirement funds, funds under the control of any independent board or commission, funds set aside for redemption of bonds or the payment of interest thereon, and private trust funds, which in the judgment of the director of the county are in excess of the amounts necessary for the immediate requirements of the respective funds, and where in the county director's judgment such action will not impede the necessary or desirable financial operations of the county, the county director may, with the consent of the council, make temporary transfers or loans therefrom, without interest, to other funds of the county for undertaking public improvements for which the issuance and sale of the general obligation bonds have been duly authorized by the legislature and by the council in accordance with chapter 47. Such transfers shall be made only after passage by the council of an ordinance or resolution authorizing the public improvements. Amounts transferred under this paragraph shall not, in any county, exceed the total sum of unissued authorized bonds of the county. The funds from which the transfers or loans are made shall be reimbursed by the county director from the proceeds of the bond sales upon the eventual issuance and sale of the bonds, or by appropriations of the council. [L 1931, c 33, §1; am L 1933, c 74, §1; RL 1935, §113; RL 1945, §370; am L 1953, c 176, §1; RL 1955, §9-5; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §103-6; gen ch 1993]

HRS §103-7 Capital improvements; authorizations for; emergency repairs or reconstruction, exception

103-7. Capital improvements; authorizations for; emergency repairs or reconstruction, exception All capital improvement projects requiring the use of general funds, special funds, general obligation bonds, and revenue bonds of the State, except projects covered by chapter 41D shall require authorization by the legislature and the governor. [L 1961, c 75, §1; Supp, §9-5.5; am L 1967, c 272, §1; HRS §103-7; am L 1989, c 261, §4]

HRS §103-8.5 Works of art special fund

103-8.5. Works of art special fund (a) There is created a works of art special fund, into which shall be transferred one per cent of all state fund appropriations for capital improvements designated for the construction cost element; provided that this transfer shall apply only to capital improvement appropriations that are designated for the construction or renovation of state buildings. The one per cent transfer requirement shall not apply to appropriations from the passenger facility charge special fund established by section 261-5.5 and the rental motor vehicle customer facility charge special fund established under section 261-5.6. (b) The works of art special fund shall be used solely for the following purposes: (1) Costs related to the acquisition of works of art, including any consultant or staff services required to carry out the art in public places and relocatable works of art programs; (2) Site modifications, display, and interpretive work necessary for the exhibition of works of art; (3) Upkeep services, including maintenance, repair, and restoration of works of art; (4) Storing and transporting works of art. (c) The one per cent amount, which is included in all capital improvement appropriations, shall be calculated at the time the appropriation bills are signed into law. The moneys shall be transferred into the works of art special fund upon availability of moneys from the appropriations. Each agency receiving capital improvement appropriations shall calculate the one per cent amount and transfer the moneys into the works of art special fund. (d) The comptroller and the state foundation on culture and the arts shall decide on the specific art objects to acquire, giving first consideration to placing appropriate pieces of art at the locations of the original appropriation. The selection of, commissioning artists for, reviewing of design, execution, and placement of, and the acceptance of works of art shall be the responsibility of the comptroller and the state foundation on culture and the arts in consultation with the affected agency or department. Expenditures from the works of art special fund shall be made by the comptroller. (e) The comptroller shall: (1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one per cent amount; (2) Ensure that each agency calculates its one per cent amount correctly; and (3) Ensure that each agency transfers the correct amount to the works of art special fund in a timely manner. (f) The comptroller and the executive director shall track amounts due from each agency under the one per cent requirement as provided in this section. [L 1989, c 389, §1; am L 1999, c 80, §§5, 8(1); am L 2003, c 178, §59 and c 213, §16; am L 2004, c 101, §3; am L 2008, c 226, §5]

HRS §103-9 False certificates or approval; penalty

103-9. False certificates or approval; penalty Any public officer or employee who falsely certifies or approves for payment any bill or voucher, or any claim against the State or any county; or who causes or authorizes the purchase of any materials or supplies or the performance of any service or labor on behalf or for the benefit of the State or any county, in the absence of any appropriations, or in excess of any appropriations made for such purposes, with the intent that the materials or supplies so purchased or the service or labor so performed shall be paid for by the State or county shall be fined not more than $500, or imprisoned not more than one year, or both. [L 1909, c 62, §7; am L 1915, c 86, §1; RL 1925, §1484; am L 1933, c 6, §1; RL 1935, §114; RL 1945, §371; RL 1955, §9-6; HRS §103-9; am L Sp 1993, c 8, §4]

HRS §103-10 Payment for goods and services

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]

HRS §103-10.5 Prompt payment

103-10.5. Prompt payment (a) Any money paid to a contractor shall be disbursed to subcontractors within ten days after receipt of the money in accordance with the terms of the subcontract; provided that the subcontractor has met all the terms and conditions of the subcontract and there are no bona fide disputes on which the procurement officer has withheld payment. (b) Upon final payment to the contractor, full payment to the subcontractor, including retainage, shall be made within ten days after receipt of the money; provided there are no bona fide disputes over the subcontractor's performance under the subcontract. (c) Where a subcontractor has provided evidence to the contractor of satisfactorily completing all work under their subcontract and has provided a properly documented final payment request as described in subsection (d) of this section, and: (1) Has provided to the contractor an acceptable performance and payment bond for the project executed by a surety company authorized to do business in the State, as provided in section 103-32.1; or (2) The following has occurred: (A) A period of ninety days after the day on which the last of the labor was done or performed and the last of the material was furnished or supplied has elapsed without written notice of a claim given to contractor and the surety, as provided for in section 103D-324; and (B) The subcontractor has provided to the contractor: (i) An acceptable release of retainage bond, executed by a surety company authorized to do business in the State, in an amount of not more than two times the amount being retained or withheld by the contractor; (ii) Any other bond acceptable to the contractor; or (iii) Any other form of mutually acceptable collateral, all sums retained or withheld from a subcontractor and otherwise due to the subcontractor for satisfactory performance under the subcontract shall be paid by the procurement officer to the contractor and subsequently, upon receipt from the procurement officer, by the contractor to the subcontractor within the applicable time periods specified in subsection (b) and section 103-10. If the procurement officer or the contractor fails to pay in accordance with this section, a penalty of one and one-half per cent per month shall be imposed upon the outstanding amounts due that were not timely paid by the responsible party. The penalty may be withheld from future payment due to the contractor, if the contractor was the responsible party. If a contractor has violated subsection (b) three or more times within two years of the first violation, the contractor shall be referred by the procurement officer to the contractor license board for action under section 444-17(14). (d) A properly documented final payment request from a subcontractor, as required by subsection (c), shall include: (1) Substantiation of the amounts requested; (2) A certification by the subcontractor, to the best of the subcontractor's knowledge and belief, that: (A) The amounts requested are only for performance in accordance with the specifications, terms, and conditions of the subcontract; (B) The subcontractor has made payments due to its subcontractors and suppliers from previous payments received under the subcontract and will make timely payments from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of this section; and (C) The payment request does not include any amounts that the subcontractor intends to withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of their subcontract; and (3) The submission of documentation confirming that all other terms and conditions required under the subcontract agreement have been fully satisfied. The procurement officer shall return any final payment request that is defective to the contractor within seven days after receipt, with a statement identifying the defect. (e) In the case of a construction contract, a payment request made by a contractor to the procurement officer that includes a request for sums that were withheld or retained from a subcontractor and are due to a subcontractor may not be approved under subsection (c) unless the payment request includes: (1) Substantiation of the amounts requested; and (2) A certification by the contractor, to the best of the contractor's knowledge and belief, that: (A) The amounts requested are only for performance in accordance with the specifications, terms, and conditions of the contract; (B) The subcontractor has made payments due to its subcontractors and suppliers from previous payments received under the contract and will make timely payments from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of this section; and (C) The payment request does not include any amounts that the contractor intends to withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of their subcontract. The procurement officer shall return any final payment request that is defective to the contractor within seven days after receipt, with a statement identifying the defect. (f) This section shall not be construed to impair the right of a contractor or a subcontractor at any tier to negotiate and to include in their respective subcontracts provisions that provide for additional terms and conditions that are requested to be met before the subcontractor shall be entitled to receive final payment under subsection (c) of this section; provided that any such payments withheld shall be withheld by the procurement officer. [L 1983, c 277, §1; am L 2000, c 164, §2; am L 2006, c 291, §2]

HRS §103-11 Rules of comptroller

103-11. Rules of comptroller The comptroller shall adopt rules pursuant to chapter 91 as necessary, for the purposes of this chapter. Any violation of the rules shall be subject to the penalties prescribed in section 103-9. [L 1911, c 47, §2; RL 1925, §1485; RL 1935, §115; RL 1945, §372; RL 1955, §9-7; am L 1957, c 152, §1; am L 1965, c 96, §3; HRS §103-11; am L 1999, c 149, §6]

HRS §103-12 Capital improvement projects; personnel training; management

103-12. Capital improvement projects; personnel training; management (a) The comptroller shall conduct annual training for the engineering personnel of all executive departments and state agencies that manage their own capital improvement projects to ensure compliance with state adopted standards and procedures of best practices in the management and construction of capital improvement projects. Each department and agency shall provide orientation training for new employees subject to this subsection and who are hired during the interim between annual trainings. (b) All executive departments and state agencies that manage their own capital improvement projects shall: (1) Use timelines that include a comprehensive list of all activities required on a project, and not simply rely on contractor timelines, which may not reflect all project phases. At a minimum, the list shall include all phases in a project's life cycle, namely, the initiation, planning, design, bid, construction, and post construction phases; (2) Follow state procurement office guidance for tracking payments and deliverables by using a contract administration worksheet that includes milestones or deliverables, which are marked off as items are completed; and (3) To help ensure end-user satisfaction with their capital improvement projects, identify and involve stakeholders throughout a project's execution and closing, including providing information about project costs, schedules, and performance. [L 2016, c 241, §2]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0103/HRS_0103-.htmFetched: 11/10/2026