Unknown. Interim final rule with request for comments

4,514 words·~21 min read·/register/2000/12/15/00-32007

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2000-12-15.xml --- 65 242 Friday, December 15, 2000 Contents Agricultural Agricultural Research Service NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive: Scenturion, Inc., 78463 00-31963 Agriculture Agriculture Department See Agricultural Research Service See Commodity Credit Corporation See Farm Service Agency See Forest Service Army Army Department NOTICES Environmental statements; notice of intent:

Army Transformation Campaign Plan, 78477 00-32000 Blind Blind or Severely Disabled, Committee for Purchase From People Who Are See Committee for Purchase From People Who Are Blind or Severely Disabled Commerce Commerce Department See International Trade Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement list; additions and deletions, 00-31986 78466-78467 00-31987 Commodity Commodity Credit Corporation RULES Loan and purchase programs:

Tobacco, 78405-78407 00-31957 NOTICES Agency information collection activities: Proposed collection; comment request, 78463-78464 00-31956 Commodity Commodity Futures Trading Commission NOTICES Agency information collection activities: Proposed collection; comment request, 78475-78476 00-32016 Copyright Copyright Office, Library of Congress PROPOSED RULES Copyright office and procedures: Sound recordings, public performance; service definition Correction, 78434 00-32038 Customs Customs Service PROPOSED RULES Financial and accounting procedure:

Harbor Maintenance Fee refunds and other claims against Customs; time limitation, 78430-78431 00-31969 Defense Defense Department See Army Department NOTICES Environmental statements; availability, etc.: National Missile Defense Deployment, 78476 00-32046 Education Education Department NOTICES Grants and cooperative agreements; availability, etc.: Postsecondary education— Preparing Tomorrow's Teachers to Use Technology Program, 78477-78478 00-31973 Reports and guidance documents; availability, etc.:

Use of tests when making high-stakes decisions for students; resource guide for educators and policy makers, 78478-78479 00-31999 Employment Employment Standards Administration NOTICES Minimum wages for Federal and federally-assisted construction; general wage determination decisions, 78514-78515 00-31718 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States:

Maryland, 78416-78418 00-32001 Pennsylvania, 78418-78422 00-31463 Toxic substances: Health effects test guidelines, 78745-78819 00-31728 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: California, 78434-78439 00-32025 Pennsylvania, 78439 00-31464 NOTICES Agency information collection activities: Proposed collection; comment request, 78484-78485 00-32032 Environmental statements; availability, etc.: Agency statements— Comment availability, 78486-78487 00-32045 Weekly receipts, 78485-78486 00-32044 Grants and cooperative agreements; availability, etc.:

Mobile Source Outreach Assistance Competition, 78487-78489 00-32027 Pesticide, food, and feed additive petitions: Rohm & Haas Co.; correction, 78491-78492 00-32034 Pesticide programs: Organophosphates; risk assessments and public participation in risk management— Coumaphos, etc., 78489-78491 00-32033 Pesticides; experimental use permits, etc.: Mycogen Seeds, 78492-78493 00-32036 Superfund program: Prospective purchaser agreements— Palmyra Atoll, 78493 00-32029 Executive Executive Office of the President See Management and Budget Office See Trade Representative, Office of United States Farm Farm Service Agency RULES Farm marketing quotas, acreage allotments, and production adjustments:

Tobacco, 78405-78407 00-31957 FCC Federal Communications Commission PROPOSED RULES Common carrier services: Mandatory FCC Registration Number; adoption, 78455-78461 00-31722 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings: Delmarva Power & Light Co. et al., 78481-78484 00-31955 *Applications, hearings, determinations, etc.:* Columbia Gas Transmission Corp., 78479-78480 00-31971 Nicole Gas Production, Ltd., 78480-78481 00-31970 Federal Mine Federal Mine Safety and Health Review Commission NOTICES Meetings;

Sunshine Act, 78515-78516 00-32193 Federal Motor Federal Motor Carrier Safety Administration RULES Practice and procedure: Motor carriers, brokers, and freight forwarders; sanctions for failure to pay civil penalties, 78422-78429 00-31920 Federal Railroad Federal Railroad Administration NOTICES Exemption petitions, etc.: South Carolina Railroad Museum, Inc., 78528 00-31975 Federal Reserve Federal Reserve System PROPOSED RULES Home mortgage disclosure (Regulation C): Miscellaneous amendments; staff interpretation, 78655-78685 00-31796 FTC Federal Trade Commission RULES Industry guides:

Jewelry, precious metals, and pewter industries, 78737-78744 00-31776 Practice and procedure: Technical amendments, 78407-78409 00-31775 Financial Financial Management Service See Fiscal Service Fiscal Fiscal Service NOTICES Agency information collection activities: Proposed collection; comment request, 78533 00-32043 Fish Fish and Wildlife Service NOTICES Comprehensive conservation plans; availability, etc.: Sevilleta Lake National Wildlife Refuge, NM, 78502-78503 00-31747 Environmental statements; availability, etc.:

Incidental take permits— Williamson County, TX; Bone Cave harvestman, 78503-78504 00-31891 Food Food and Drug Administration NOTICES Harmonisation International Conference; guidelines availability: Medicinal products in pediatric population; E11 clinical investigation, 78494-78495 00-31947 Medical devices: Class II devices; premarket notification exemptions, 78495-78496 00-31961 Premarket approval applications, list; safety and effectiveness summaries availability, 78496-78497 00-31960 Reports and guidance documents; availability, etc.:

Botanical drug products, 78497-78498 00-31948 Foreign Foreign Assets Control Office NOTICES Victims of Trafficking and Violence Protection Act; implementation: Payments to persons holding categories of judgments against Cuba or Iran, 78533-78534 00-32100 Forest Forest Service NOTICES Environmental statements; availability, etc.: Hoosier National Forest, IN, 78464 00-31983 Environmental statements; notice of intent: Carson and Santa Fe National Forests, NM, 78464-78465 00-31952 Dixie National Forest, UT, 78465-78466 00-31982 GSA General Services Administration NOTICES Environmental statements; availability, etc.:

Eugene/Springfield, OR; Federal courthouse and office building, 78494 00-31965 Health Health and Human Services Department See Food and Drug Administration See National Institutes of Health Housing Housing and Urban Development Department NOTICES Agency information collection activities: Proposed collection; comment request, 78498 00-31985 Grants and cooperative agreements; availability, etc.: Facilities to assist homeless— Excess and surplus Federal property, 78499-78500 00-31654 Mortgage and loan insurance programs:

Credit Watch Termination Initiative; list of mortgagees whose Origination Approval Agreements have been terminated, 78501-78502 00-31984 Indian Indian Affairs Bureau NOTICES Environmental statements; availability, etc.: Colville Confederated Tribes, Colville Indian Reservation, WA; integrated resource management plan, 78504-78505 00-31951 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See Minerals Management Service See National Park Service See Reclamation Bureau See Surface Mining Reclamation and Enforcement Office RULES Indian Self-Determination and Education Assistance Act:

Tribal Self-Governance Program, 78687-78735 00-31647 IRS Internal Revenue Service RULES Procedure and administration: Combat zone service and Presidentially declared disaster; tax-related deadlines postponed, 78409-78413 00-31500 International International Trade Administration NOTICES Antidumping: Cold-rolled carbon steel flat products from— Korea, 78473 00-31942 Fresh Atlantic Salmon from— Chile, 78473-78475 00-31945 Antidumping and countervailing duties: Carbon steel products from— Various countries, 78467-78473 00-31943 00-31944 Countervailing duties:

Honey from— Argentina, 78475 00-31941 Justice Justice Department RULES Organization, functions, and authority delegations: Authority to compromise and close civil claims; gross amount of original claim, definition, 78413-78414 00-31765 Labor Labor Department See Employment Standards Administration NOTICES Agency information collection activities: Submission for OMB review; comment request, 78513-78514 00-31988 Land Land Management Bureau PROPOSED RULES Minerals management: Fee changes, 78440-78455 00-31748 NOTICES Coal leases, exploration licenses, etc.:

Wyoming, 78505-78506 00-31870 Meetings: Resource Advisory Councils— Northeastern Great Basin, 78506 00-31953 Library Library of Congress See Copyright Office, Library of Congress Management Management and Budget Office RULES Prompt Payment Act; implementation: Interest penalties under cost-reimbursement contract for services more than 30 days after receiving proper invoice, 78403-78405 00-32007 NOTICES Federal Financial Accounting Standards: Federal Credit Reform Act; direct loan and loan guarantee subsidies; document availability, 78517 00-32008 Non-valued seized and forfeited property reporting; document availability, 78517 00-32009 Maritime Maritime Administration NOTICES Coastwise trade laws; administrative waivers:

GINGERSNAP, 78528-78529 00-32012 REFLECTION, 78529-78530 00-32010 SEASCAPE, 78530-78531 00-32011 Minerals Minerals Management Service PROPOSED RULES Outer Continential Shelf; oil, gas, and sulphur operations: Affected State; definition removed, 78432-78434 00-31950 Royalty management: Rate relief or reduction; deep water royalty relief for post-2000 OCS oil and gas leases, 78431-78432 00-32006 NOTICES Agency information collection activities: Submission for OMB review; comment request, 78506-78508 00-32005 Environmental statements; availability, etc.:

Western Gulf of Mexico OCS— Lease sales, 78508 00-31964 Mine Mine Safety and Health Federal Review Commission See Federal Mine Safety and Health Review Commission National Highway National Highway Traffic Safety Administration PROPOSED RULES Motor vehicle safety standards: Fuel system integrity, 78461-78462 00-31976 NOTICES Motor vehicle safety standards; exemption petitions, etc.: Continental General Tire, Inc., 78531 00-31977 NIH National Institutes of Health NOTICES Recombinant DNA molecules research:

Actions under guidelines Proposed; correction, 78535 C0-31524 National Park National Park Service NOTICES Concession contract negotiations: Katmai National Park and Preserve, AK, 78508-78509 00-32014 Concession contracts and permits: Extension of expiring contracts for up to one year; correction, 78509 00-32015 Environmental statements; availability, etc.: Tallgrass Prairie National Preserve, KS, 78509-78512 00-31914 Nuclear Nuclear Regulatory Commission NOTICES Agency information collection activities:

Proposed collection; comment request, 00-31966 78516-78517 00-31967 Office Office of Management and Budget See Management and Budget Office Office of U.S. Trade Office of United States Trade Representative See Trade Representative, Office of United States Pension Pension Benefit Guaranty Corporation RULES Single employer plans: Allocation of assets— Interest assumptions for valuing and paying benefits, 78414-78416 00-31990 NOTICES Multiemployer plans: Interest rates and assumptions, 78517-78518 00-31991 Postal Postal Service RULES Domestic Mail Manual:

Rate, fee, and classification changes, 78537-78654 00-31357 Public Public Debt Bureau See Fiscal Service Public Public Health Service See Food and Drug Administration See National Institutes of Health Reclamation Reclamation Bureau NOTICES Environmental statements; availability, etc.: Colorado River interim surplus criteria, 78512-78513 00-31962 SEC Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 78519 00-32070 Options Price Reporting Authority: Consolidated options last sale reports and quotation information plan; participation fee payable by new parties, 78519-78520 00-31997 Self-regulatory organizations; proposed rule changes:

Depository Trust Co., 78520-78521 00-31998 National Association of Securities Dealers, Inc., 78521-78522 00-31959 New York Stock Exchange, Inc., 78523-78524 00-31996 Pacific Exchange, Inc., 78821-78893 00-30518 Philadelphia Stock Exchange, Inc., 78524-78527 00-31994 00-31995 *Applications, hearings, determinations, etc.:* Ramco Energy plc, 78518 00-31992 Resource Bankshares Corp., 78518-78519 00-31993 SBA Small Business Administration NOTICES Disaster loan areas: Michigan, 78527-78528 00-31972 Surface Surface Mining Reclamation and Enforcement Office RULES Permanent program and abandoned mine land reclamation plan submissions:

Maryland; correction, 78416 00-32039 NOTICES Agency information collection activities: Proposed collection; comment request, 78513 00-32040 Surface Surface Transportation Board NOTICES Railroad operation, acquisition, construction, etc.: Maine Coast Railroad Corp. et al., 78531-78532 00-31879 Union Pacific Railroad Co., 78532 00-31907 Trade Trade Representative, Office of United States NOTICES Caribbean Basin Economic Recovery Act: Beneficiary countries; preferential treatment list, 78528 00-32042 Transportation Transportation Department See Federal Motor Carrier Safety Administration See Federal Railroad Administration See Maritime Administration See National Highway Traffic Safety Administration See Surface Transportation Board Treasury Treasury Department See Customs Service See Fiscal Service See Foreign Assets Control Office See Internal Revenue Service NOTICES Agency information collection activities:

Submission for OMB review; comment request, 78532-78533 00-31954 Separate Parts In This Issue Part II Postal Service, 78537-78654 00-31357 Part III Federal Reserve System, 78655-78685 00-31796 Part IV Department of the Interior, 78687-78735 00-31647 Part V Federal Trade Commission, 78737-78744 00-31776 Part VI Environmental Protection Agency, 78745-78819 00-31728 Part VII Securities and Exchange Commission, 78821-78893 00-30518 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. 65 242 Friday, December 15, 2000 Rules and Regulations OFFICE OF MANAGEMENT AND BUDGET 5 CFR Part 1315 Prompt Payment AGENCY:

Office of Management and Budget, Executive Office of the President. ACTION: Interim final rule with request for comments. SUMMARY: The Office of Management and Budget

(OMB)is issuing an interim final revision to its rules on the Prompt Payment Act

(PPA)to implement Section 1010 of the National Defense Authorization Act for Fiscal Year 2001. Section 1010 requires agencies to pay an interest penalty whenever they make an interim payment under a cost-reimbursement contract for services more than 30 days after the agency receives a proper invoice for payment from the contractor. DATES: *Effective Date: * This interim final rule is effective December 15, 2000. *Applicability Dates: * This interim final rule shall apply to all interim payment requests received under cost-reimbursement service contracts awarded on or after December 15, 2000. At the discretion of the agency, this interim final rule may be applied to interim payment requests received under cost-reimbursement service contracts awarded before December 15, 2000. However, no interest penalty shall accrue under this rule for any delay in payment that occurs prior to December 15, 2000. *Comment Date: * Comments must be received by February 13, 2001 and should be directed to the Department of the Treasury at the address identified below. ADDRESSES: All comments should be addressed to Cynthia L. Johnson, Director, Cash Management Policy and Planning Division, Financial Management Service, U.S. Department of the Treasury, Room 420, 401 14th Street SW., Washington, DC 20227. Copies of the current PPA regulation and other information are available from the Prompt Payment web site at *http://www.fms.treas.gov/prompt/index.html.* FOR FURTHER INFORMATION CONTACT: Sally Phillips, Senior Financial Program Specialist, on

(202)874-7106; Matthew Helfrich, Financial Program Specialist, on

(202)874-6749; Martha Thomas-Mitchell, Financial Program Specialist, on

(202)874-6757; or Cynthia L. Johnson, Director, Cash Management Policy and Planning Division, on

(202)874-6590. SUPPLEMENTARY INFORMATION: I. Background Contractors who are awarded cost-reimbursement contracts are generally authorized to seek reimbursement, including reimbursement during the course of the contract (“interim payments”), for the allowable costs they incur in the performance of the contract. In the National Defense Authorization Act for Fiscal Year 2001, Public Law 106-398, 114 Stat. 1654, Congress imposed a new statutory requirement on agencies to pay an interest penalty on interim payments that are made late under cost-reimbursement service contracts. This requirement is contained in Section 1010 of the Act—“Interest Penalties for Late Payment of Interim Payments Due Under Government Service Contracts.” Specifically, under Section 1010(a), “an agency acquiring services from a business concern under a cost-reimbursement contract requiring interim payments who does not pay the concern a required interim payment by the date that is 30 days after the date of the receipt of a proper invoice shall pay an interest penalty to the concern on the amount of the payment due.” In addition, “[t]he interest shall be computed as provided in section 3902(a) of title 31, United States Code,” which is the interest provision of the Prompt Payment Act (PPA, 31 U.S.C. 3901, *et seq.* ), and the agencies are to carry out the requirement “[u]nder regulations prescribed” by OMB. In turn, Section 1010(b) directs OMB to “prescribe regulations to carry out this section,” which “shall be prescribed as part of” OMB's regulations implementing the PPA. OMB's PPA regulations are now found at 5 CFR Part 1315 (prior to their 1999 codification, they were contained in OMB Circular A-125). See 64 FR 52580 (September 29, 1999). Section 1010(c) states that “[t]he provisions of chapter 39 of title 31, United States Code [i.e., the PPA], shall apply to this section in the same manner as if this section were enacted as part of such chapter.” Finally, Section 1010(d) states that “Subsection

(a)shall take effect on December 15, 2000. No interest shall accrue by reason of that subsection for any period before that date.” This rule implements Section 1010 by making conforming revisions, on an interim final basis, to OMB's PPA regulations. In developing this rule, OMB has consulted with the Departments of Defense and Treasury, the General Services Administration, and other agencies. OMB requests comment on the interim final revisions, and will consider them in our development of the final rule. Agency Practices and Policies Regarding Interim Payments Until now, interim payments under cost-reimbursement service contracts have not been subject to PPA interest penalties. As a result of Section 1010, interim payments on cost-reimbursement service contracts will be subject to PPA interest penalties when the payment is not made “by the date that is 30 days after the date of the receipt of a proper invoice.” However, neither Section 1010 nor this interim final rule is intended to modify current agency practices or policies regarding dates for payment for interim payments on cost-reimbursement service contracts, other than to require—in accordance with Section 1010(a)—that PPA interest penalties be paid on interim payments that are made more than 30 days after the agency receives a proper invoice. In particular, Section 1010 leaves unaffected existing agency policies that call for these interim payments to be made well in advance of 30 days. For example, it is the policy of the Department of Defense to generally pay contractors 14 days or less after being billed for reimbursements on cost-reimbursement contracts. See Subpart 232.906 of the Department of Defense Supplement to the Federal Acquisition Regulation (DFARS), 48 CFR Chapter 2. Implementation Newly added Section 1315.20 of the PPA regulation makes clear that the requirements of Section 1010 are to be implemented on an accelerated basis. Section 1315.20 requires agencies to immediately apply the revisions made by this interim final rule to all interim payment requests received under cost-reimbursement service contracts awarded on or after December 15, 2000. This accelerated implementation schedule is intended to reinforce agency efforts to pay their bills in a timely manner. Prompt payment facilitates the government's ability to attract high quality contractors, and can reduce contractors' costs of doing business with the government, which can translate into lower prices for the products and services agencies acquire to meet their mission needs. For this reason, the rule also authorizes agencies, at their discretion, to apply the revisions to interim payment requests received under cost-reimbursement service contracts awarded prior to December 15, 2000. Agencies are authorized to issue modifications to contracts, as necessary, to conform them to the revisions made by this interim final rule. However, as required by Section 1010(d), no interest penalty shall accrue under this rule for any delay in payment that occurs prior to December 15, 2000. Mandatory application of the revised rule to contracts awarded on or after the rule's effective date is consistent with implementation approaches previously taken by OMB in implementing PPA requirements. When OMB originally implemented the PPA in 1982, and when OMB in 1989 implemented the Act's 1988 amendments, new requirements generally applied to contracts that would be executed on or after the statutory effective date. See August 25, 1982 implementation of PPA, at 47 FR 37321, 37322 (preamble discussion) and 37324 (Circular A-125, Section 13—“Interest penalties will apply to payments made under contracts issued on or after October 1, 1982.”); December 21, 1989 implementation of 1988 amendments, at 54 FR 52700, 52713 (Circular A-125, Section 15—generally applying new requirements to “payments under contracts awarded, contracts renewed, and contract options exercised on or after” the statutory effective date). OMB believes this same implementation approach is suitable for Section 1010 and will best ensure that the requirements of Section 1010—which was recently enacted on October 30, 2000—are applied by agencies in an orderly and effective manner. II. Regulatory Flexibility Act, Unfunded Mandates Reform Act, Congressional Review Act, and Executive Orders 12866 and 12875 This interim final rule will not have a significant economic effect on a substantial number of small entities; the regulations implement Section 1010 of the National Defense Authorization Act for Fiscal Year 2001, which requires Federal agencies to pay an interest penalty whenever they make interim payments on cost-reimbursement service contracts more than 30 days after they receive a proper invoice. For purposes of the Unfunded Mandates Reform Act of 1995 (Public Law 104-4), as well as Executive Orders 12866 and 12875, the interim final rule will not significantly or uniquely affect small governments, and will not result in increased expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more. Finally, the interim final rule is not a “major rule” under 5 U.S.C. Chapter 8; the rule will not have any of the effects set forth in 5 U.S.C. 804(2). III. Paperwork Reduction Act The Paperwork Reduction Act does not apply to this interim final rule because the rule's changes do not impose new recordkeeping requirements or collections of information from offerors, contractors, or members of the public that require approval under 44 U.S.C. 3501, *et seq.* The information a contractor must submit in order to receive an interim payment under a cost-reimbursement service contract is addressed at Section 1315.9(b)(2) of the revised PPA regulations. Section 1315.9(b)(2) states that an interim payment request must correctly include all the information required by the contract or by agency procedures. IV. Determination To Issue an Interim Final Rule This rule is being promulgated as an interim final rule in order to carry out Section 1010(a) of Public Law 106-398 on a timely basis. Section 1010(a) requires an agency, under regulations prescribed by the Director of OMB, to pay an interest penalty whenever the agency makes an interim payment under a cost-reimbursement contract for services that is more than 30 days after the agency receives a proper invoice for payment from the contractor. Section 1010(a) was enacted into law on October 30, 2000, when the President signed into law Public Law 106-398, the National Defense Authorization Act for Fiscal Year 2001. Section 1010(d) states that Section 1010(a) “shall take effect on December 15, 2000,” and Section 1010(b) directs OMB to “prescribe regulations to carry out” Section 1010. There is “good cause” under 5 U.S.C. 553(b) for OMB to issue this rule without prior public comment, because the issuance of a proposed rule to implement Section 1010(a) would have been “impracticable” due to the very short (45-day) period between the enactment and effective dates for Section 1010(a). Although this rule is being issued without prior opportunity for public comment, OMB is requesting comments on the interim final rule and will consider all comments received in our development of the final rule. List of Subjects in 5 CFR Part 1315 Administrative practice and procedure, Government contracts, Penalties, Reporting and recordkeeping requirements. Dated: December 12, 2000. Sylvia M. Mathews, Deputy Director. For reasons set out in the preamble, 5 CFR chapter III, part 1315 is amended as set forth below: Authority and Issuance PART 1315—PROMPT PAYMENT 1. The authority citation for part 1315 is revised to read as follows: Authority: 31 U.S.C. chapter 39; Section 1010 of Public Law 106-398, 114 Stat. 1654. 2. Section 1315.2 is amended by revising paragraph

(h)to read as follows: § 1315.2 Definitions.

(h)*Contract financing payments * means an authorized disbursement of monies prior to acceptance of goods or services including advance payments, progress payments based on cost, progress payments (other than under construction contracts) based on a percentage or stage of completion, payments on performance-based contracts and interim payments on cost-type contracts (other than under cost-reimbursement contracts for the acquisition of services). Contract financing payments do not include invoice payments, payments for partial deliveries, or lease and rental payments. Contract financing payments also do not include progress payments under construction contracts based on a percentage or stage of completion and interim payments under cost-reimbursement service contracts. For purposes of this part, interim payments under a cost-reimbursement service contract are treated as invoice payments and subject to the requirements of this part, except as otherwise provided (see, *e.g.* , §§ 1315.4(d) and (e), and 1315.9(b)(1) and (c)). 3. Section 1315.4 is amended by revising paragraphs

(d)and (e), revising paragraph (g)(1), redesignating paragraphs (g)(2) through (g)(4) as paragraphs (g)(3) through (g)(5), respectively, and adding a new paragraph (g)(2) to read as follows: § 1315.4 Prompt payment standards and required notices to vendors.

(d)*Receipt of goods and services. * Agencies will ensure that receipt is properly recorded at the time of delivery of goods or completion of services. This requirement does not apply to interim payments on cost-reimbursement service contracts except as otherwise required by agency regulations.

(e)*Acceptance. * Agencies will ensure that acceptance is executed as promptly as possible. Commercial items and services should not be subject to extended acceptance periods. Acceptance reports will be forwarded to the designated agency office by the fifth working day after acceptance. Unless other arrangements are made, acceptance reports will be stamped or otherwise annotated with the receipt date in the designated agency office. This requirement does not apply to interim payments on cost-reimbursement service contracts except as otherwise required by agency regulations.

(g)*Determining the payment due date.*

(1)Except as provided in paragraphs (g)(2) through

(5)of this section, the payment is due either:

(i)On the date(s) specified in the contract;

(ii)In accordance with discount terms when discounts are offered and taken (see § 1315.7);

(iii)In accordance with Accelerated Payment Methods (see § 1315.5); or

(iv)30 days after the start of the payment period as specified in paragraph

(f)of this section, if not specified in the contract, if discounts are not taken, and if accelerated payment methods are not used.

(2)*Interim payments under cost-reimbursement contracts for services. * The payment due date for interim payments under cost-reimbursement service contracts shall be 30 days after the date of receipt of a proper invoice. 4. Section 1315.5 is amended by adding a new paragraph

(d)to read as follows: § 1315.5 Accelerated payment methods.

(d)*Interim payments under cost-reimbursement contracts for services. * For interim payments under cost-reimbursement service contracts, agency heads may make payments earlier than seven days prior to the payment due date in accordance with agency regulations or policies. 5. Section 1315.9 is amended by redesignating paragraphs

(b)introductory text and (b)(1) through (b)(10) as paragraphs (b)(1) introductory text and (b)(1)(i) through (b)(1)(x), respectively, revising newly redesignated paragraph (b)(1) introductory text, adding a new paragraph (b)(2), and revising the introductory text of paragraph

(c)to read as follows: § 1315.9 Required documentation. (b)(1) Except for interim payment requests under cost-reimbursement service contracts, which are covered by paragraph (b)(2) of this section, the following correct information constitutes a proper invoice and is required as payment documentation:

(2)An interim payment request under a cost-reimbursement service contract constitutes a proper invoice for purposes of this part if it correctly includes all the information required by the contract or by agency procedures.

(c)Except for interim payment requests under cost-reimbursement service contracts, the following information from receiving reports, delivery tickets, and evaluated receipts is required as payment documentation: 6. Section 1315.10 is amended by revising paragraph (b)(1) to read as follows: § 1315.10 Late payment interest penalties.

(b)* * *

(1)Interest may be paid only after acceptance has occurred; when title passes to the government in a fast payment contract when title passing to the government constitutes acceptance for purposes of determining when interest may be paid; or when the payment is an interim payment under a cost-reimbursement service contract; 7. Add § 1315.20 to read as follows: § 1315.20 Application of Section 1010 of the National Defense Authorization Act for Fiscal Year 2001. Section 1010 of the National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398, 114 Stat. 1654) requires an agency to pay an interest penalty whenever the agency makes an interim payment under a cost-reimbursement contract for services more than 30 days after the date the agency receives a proper invoice for payment from the contractor. This part implements Section 1010 and is applicable in the following manner:

(a)This part shall apply to all interim payment requests received under cost-reimbursement service contracts awarded on or after December 15, 2000.

(b)This part may be applied, at the discretion of the agency, to interim payment requests received under cost-reimbursement service contracts awarded before December 15, 2000. However, no interest penalty shall accrue under this part for any delay in payment that occurs prior to December 15, 2000.

(c)Agencies are authorized to issue modifications to contracts, as necessary, to conform them to the provisions in this part implementing Section 1010. [FR Doc. 00-32007 Filed 12-14-00; 8:45 am]

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