Prompt Payment Act

(Measure passed House, amended, in lieu of H.R. 4709)

Prompt Payment Act - Requires Federal agencies to pay interest penalties on overdue payments to businesses for property or services (excluding disputed payments). Requires the Office of Management and Budget (OMB) to prescribe required payment dates, including specified payment dates for meat food products and perishable agricultural commodities.

Specifies procedures for computing such penalties. Directs an agency to pay any interest penalty out of funds made available for the program for which the penalty was incurred.

Authorizes Federal grant recipients to provide for the payment of interest penalties on overdue payments on their procurement contracts, except that Federal funds shall not be used to pay such penalties.

Entitles an agency to an early payment discount offered by a business only if payment is made within the prescribed time. Requires an agency to pay an interest penalty on any amount overdue.

Permits contractors to file claims under the Contract Disputes Act of 1978 for the payment of interest penalties. Prohibits the continued accrual of interest penalties: (1) after such a claim is filed; or (2) for more than one year.

Directs each agency to report to OMB annually on interest penalty payments made during the fiscal year. Requires OMB to report to specified congressional committees on agency compliance with this Act.

Subjects the Tennessee Valley Authority to the provisions of this Act, but not to regulations promulgated pursuant to this Act.