[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC3901]
TITLE 31--MONEY AND FINANCE
SUBTITLE III--FINANCIAL MANAGEMENT
CHAPTER 39--PROMPT PAYMENT
Sec. 3901. Definitions and application
(a) In this chapter--
(1) ``agency'' has the same meaning given that term in section
551(1) of title 5 and includes an entity being operated, and the
head of the agency identifies the entity as being operated, only as
an instrumentality of the agency to carry out a program of the
agency.
(2) ``business concern'' means--
(A) a person carrying on a trade or business; and
(B) a nonprofit entity operating as a contractor.
(3) ``proper invoice'' is an invoice containing or accompanied
by substantiating documentation the Director of the Office of
Management and Budget may require by regulation and the head of the
appropriate agency may require by regulation or contract.
(4) for the purposes of determining a payment due date and the
date upon which any late payment interest penalty shall begin to
accrue, the head of the agency is deemed to receive an invoice--
(A) on the later of--
(i) the date on which the place or person designated by
the agency to first receive such invoice actually receives a
proper invoice; or
(ii) on the 7th day after the date on which, in
accordance with the terms and conditions of the contract,
the property is actually delivered or performance of the
services is actually completed, as the case may be, unless--
(I) the agency has actually accepted such property
or services before such 7th day; or
(II) the contract (except in the case of a contract
for the procurement of a brand-name commercial item for
authorized resale) specifies a longer acceptance period,
as determined by the contracting officer to be required
to afford the agency a practicable opportunity to
inspect and test the property furnished or evaluate the
services performed; or
(B) on the date of the invoice, if the agency has failed to
annotate the invoice with the date of receipt at the time of
actual receipt by the place or person designated by the agency
to first receive such invoice.
(5) a payment is deemed to be made on the date a check for
payment is dated or an electronic fund transfer is made.
(6) a contract to rent property is deemed to be a contract to
acquire the property.
(b) This chapter applies to the Tennessee Valley Authority. However,
regulations prescribed under this chapter do not apply to the Authority,
and the Authority alone is responsible for carrying out this chapter as
it applies to contracts of the Authority.
(c) This chapter applies to the United States Postal Service.
However, the Postmaster General shall be responsible for issuing the
implementing procurement regulations, solicitation provisions, and
contract clauses for the United States Postal Service.
(d)(1) Notwithstanding subsection (a)(1) of this section, this
chapter, except section 3907 of this title, applies to the District of
Columbia Courts.
(2) A claim for an interest penalty not paid under this chapter may
be filed in the same manner as claims are filed with respect to
contracts to provide property or services for the District of Columbia
Courts.
(3)(A) Except as provided in subparagraph (B), an interest penalty
under this chapter does not continue to accrue for more than one year or
after a claim for an interest penalty is filed in the manner described
in paragraph (2), whichever is earlier.
(B) If a claim for an interest penalty is filed in the manner
described in paragraph (2) and interest is not available for such claims
under the laws and regulations governing claims under contracts to
provide property or services for the District of Columbia Courts,
interest will accrue under this chapter as provided in paragraph (A) and
from the date the claim is filed until the date the claim is paid.
(4) Paragraph (3) of this subsection does not prevent an interest
penalty from accruing on a claim if such interest is available for such
claim under the laws and regulations governing claims under contracts to
provide property or services for the District of Columbia Courts. Such
interest may accrue on an unpaid contract payment and on the unpaid
penalty under this chapter.
(5) Except as provided in section 3904 of this title, this chapter
does not require an interest penalty on a payment that is not made
because of a dispute between the head of an agency and a business
concern over the amount of payment or compliance with the contract. A
claim related to the dispute, and any interest payable for the period
during which the dispute is being resolved, is subject to the laws and
regulations governing claims under contracts to provide property or
services for the District of Columbia Courts.
(Added Pub. L. 97-452, Sec. 1(18)(A), Jan. 12, 1983, 96 Stat. 2474;
amended Pub. L. 100-496, Sec. 2(a)-(c)(1), Oct. 17, 1988, 102 Stat.
2455; Pub. L. 105-277, div. A, Sec. 101(c) [title I, Sec. 162(a)], Oct.
21, 1998, 112 Stat. 2681-121, 2681-148; Pub. L. 105-362, title XIII,
Sec. 1301(c)(2)(A), Nov. 10, 1998, 112 Stat. 3293.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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3901(a).............................. 31 App.:1805. May 21, 1982, Pub. L. 97-177, Secs. 6,
7(c), 96 Stat. 87, 88.
3901(b).............................. 31 App.:1806.
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In the chapter, the words ``the head of'' are added for clarity and
consistency in the revised title and with other titles of the United
States Code.
In subsection (a)(1), the word ``Federal'' is omitted as unnecessary
and for consistency in the revised title and with other titles of the
Code. The words ``for this purpose'' are omitted because of the
restatement. The words ``the purpose of'' and ``or more'' are omitted as
surplus.
In subsection (a)(5), the words ``deemed to be'' are substituted for
``considered'' for consistency in the revised title and with other
titles of the Code.
In subsection (a)(6), the words ``real or personal'' are omitted as
surplus. The words ``deemed to be'' are added for consistency in the
revised title and with other titles of the Code.
In subsection (b), the words ``the authority of'' are omitted as
surplus.
Amendments
1998--Subsec. (c). Pub. L. 105-362 struck out ``, except section
3906 of this title,'' after ``This chapter''.
Subsec. (d). Pub. L. 105-277 added subsec. (d).
1988--Subsec. (a)(4). Pub. L. 100-496, Sec. 2(a), amended par. (4)
generally. Prior to amendment, par. (4) read as follows: ``the head of
an agency is deemed to receive an invoice on the later of the dates
that--
``(A) the designated payment office or finance center of the
agency actually receives a proper invoice; or
``(B) the head of the agency accepts the applicable property or
service.''
Subsec. (a)(5). Pub. L. 100-496, Sec. 2(b), amended par. (5)
generally, substituting ``check for payment is dated or an electronic
fund transfer is made'' for ``check for the payment is dated''.
Subsec. (c). Pub. L. 100-496, Sec. 2(c)(1), added subsec. (c).
Effective Date of 1988 Amendment
Amendment by section 2(a), (b) of Pub. L. 100-496 applicable to
payments under contracts awarded, contracts renewed, and contract
options exercised during or after the first fiscal quarter which begins
more than 90 days after Oct. 17, 1988, and amendment by section 2(c)(1)
of Pub. L. 100-496 applicable with respect to all obligations incurred
on or after Jan. 1, 1989, see section 14(a), (c) of Pub. L. 100
