Page:United States Statutes at Large Volume 96 Part 1.djvu/127

 PUBLIC LAW 97-177—MAY 21, 1982

96 STAT. 85

Public Law 97-177 97th Congress An Act To require the Federal Government to pay interest on overdue payments, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled.

May 21, 1982 [S. 1131]

Prompt Payment Act.

SHORT TITLE SECTION

1. This Act may be cited as the "Prompt Payment Act". 3i use 1801 note. INTEREST PENALTIES ON LATE PAYMENTS

SEC. 2. (a)(1) In accordance with regulations prescribed by the 3i use 1801. Director of the Office of Management and Budget, each Federal agency which acquires property or services from a business concern but which does not make payment for each such complete delivered item of property or service by the required payment date shall pay an interest penalty to such business concern in accordance with this section on the amount of the payment which is due. (2) Such regulations— (A) shall specify that the required payment date shall be— (i) the date on which payment is due under the terms of the contract for the provision of such property or service; or (ii) thirty days after receipt of a proper invoice for the amount of the payment due, if a specific date on which payment is due is not established by contract; (B)(i) in the case of any acquisition of meat or of a meat food product, as defined in section 2(a)(3) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(3)), shall specify a required payment date which is not later than seven days after the date of delivery of such meat or meat food product; and (ii) in the case of any acquisition of a perishable agricultural commodity, as defined in section 1(4) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499a(4)), shall specify a required payment date consistent with requirements imposed pursuant to such Act; (C) shall specify separate required payment dates for contracts under which property or services are provided in a series of partial executions or deliveries, to the extent that such contract provides for separate payment for such partial execution or delivery; and (D) shall require that, within fifteen days after the date on which any invoice is received. Federal agencies notify the business concern of any defect or impropriety in such invoice which would prevent the running of the time period specified in subparagraph (A)(ii). (b)(1) Interest penalties on amounts due to a business concern under this Act shall be paid to the business concern for the period

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