[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 716 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 716

To amend title 31, United States Code, to establish an interest penalty 
for failure to make prompt payments under service contracts with small 
                           business concerns.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1992

  Mr. Frank of Massachusetts introduced the following bill; which was 
           referred to the Committee on Government Operations

_______________________________________________________________________

                                 A BILL


 
To amend title 31, United States Code, to establish an interest penalty 
for failure to make prompt payments under service contracts with small 
                           business concerns.

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

SECTION 1. INTEREST PENALTY FOR FAILURE TO MAKE PROMPT PAYMENTS UNDER 
              SERVICE CONTRACTS WITH SMALL BUSINESS CONCERNS.

    (a) In General.--Section 3902(a) of title 31, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) in paragraph (1) (as designated by paragraph (1) of 
        this section) by inserting ``and subject to paragraph (2)'' 
        after ``this title''; and
            (3) by adding at the end the following:
    ``(2)(A) In the case of a failure to make any payment due under a 
service contract with a small business concern by the payment due date, 
the interest penalty under this subsection shall be paid without regard 
to whether the small business concern is obligated under the contract 
to provide an item of property or service after the required payment 
date.
    ``(B) In this paragraph--
            ``(i) the term `service contract' means a contract--
                    ``(I) the primary purpose of which is the provision 
                of a service to the Federal Government; and
                    ``(II) that does not require providing property to 
                the Federal Government, other than such items as are 
                necessary for the performance of such service; and
            ``(ii) the term `small business concern' has the meaning 
        that term has under section 3(a) of the Small Business Act.''.
    (b) Regulations.--The Director of the Office of Management and 
Budget shall issue regulations implementing the amendment made by 
subsection (a) by not later than 90 days after the date of the 
enactment of this Act.

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