HI HB987

Reduces the payment timeline for state and county government contracts from 30 calendar days to 15 calendar days following receipt of invoice or satisfactory delivery of goods/services.

Establishes a maximum payment deadline of 45 calendar days when mitigating circumstances prevent timely payment within 15 days.

Shifts the start date for interest penalties from the 30th day to the 16th day when payments are late, with interest calculated at the prime rate plus 2 percent per quarter.

Applies to all contractors (nonprofits, small businesses, and other vendors) who provide goods or services under government contract.

Aims to address documented problems with late government payments, particularly affecting nonprofit human service providers and small businesses in Hawaii.